All posts by Certified Public Accountant Practitioner and Consultant

My name is Rodrigo B. Niango Jr a Certified Public Accountant, a partner of Redor Emerson & Co., CPAs a Philippine Based Accounting and Auditing Firm, we came from the roots of Carlos J. Valdez since our managing partner (Mr. Emerson P. Redor) is once an associate in the said firm. I, together with the current partners and staff continue the legacy of our "parents in business" . Currently I am enrolled in Philippine Institute of Certified Public Accountant - Pamantasan ng Lungsod ng Maynila (PICPA-PLM), for my Masters in Business Administration- Top Executive Program (MBA-TEP) to pursue higher milestone and keep up with the changing environment of the profession, in order for me to do what I do best and to answer for my calling.

Things I Learn In Organizational Behavior Subject

 

Professor: Dr. Antonio E. Casurao Sr.

By : Rodrigo B. Niango Jr MBA-TEP Batch 9

A lot of things are going inside my head when I entered the MBA program of PICPA, especially on how it will add value and knowledge for my professional and personal growth. Although, I have learned a lot in the pursuit of MBA program these past few months. There is one thing that sparks my curiosity regarding the behavior of different people within an organization. Little did I know that this subject would tackle the curiosity I have in my mind, particularly the people’s different background, competence and behavior in the emerging globalization of this era.

Firstly, I have learned that organizational behavior is the scientific study on how humans behave within an organization. This is where an individual with a distinct personality, gift, intelligence and skills go to a group, and mingle with each other in order to attain their individual goal and the organization’s goal. This where the behavior of each individual within a group are being analyze in order to utilize each uniqueness effectively for the benefit of the organization.

Secondly, realizing that norms and culture within a particular organization varies on places and the organizations establish beliefs, values and lifestyle. Such, behavior is motivated by the thought that it is acceptable since it has been there and developed from a long period and of time and practiced by the majority of the people around it.

Thirdly, top management should be responsible in the organization design, configuration, and standard up to the formalization stage of the organization’s accepted structure in order for them to maximize each individual’s talent in order to achieve the company’s goal as well the need of the personnel.

Fourthly, there are different needs that motivate the employees, the transaction analysis on the behavior and the “games” within the organization that the people play to assert dominance or fulfillment in their ego, the strokes that somehow encourage or fulfill their assurance level in the process of attaining its self actualization.

Lastly, in doing our case study I have realized that a certain company may somehow develop a system or company policy in attracting, and maintaining those right person that would be beneficial to the company as a whole. I realize that there are set of person that may or may not fit in within the organization regardless of how skilled they are because they may not be the right person to dwell within that organization. That is why work force planning in relation to the science of Organizational Behavior is crucial in every organization especially in this age of globalization, where in there is a budding diversification from the different country because of the more accessible information technology.

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BIR GENERAL QUESTIONS

pexels-photo-921783.jpegA. How to register your business in the BIR including branch offices and other facilities?

  1. Proceed to the Revenue District Office having jurisdiction over your head office, branch office/s, place of production and storage places where inventory of goods for sale or use in business are kept.
  2. Accomplish and submit Application for Registration (BIR Forms 1901/1903), together with the following:
  • Sketch of business site of taxpayer
  • Photocopy of Mayor’s Permit & Municipal License
  • Certificate of Registration of Business name DTI for single proprietorship; or SEC Certificate of Registration, for corporation or partnership
  • Articles of Incorporation or Partnership;
  • Proof of Ownership/Lease Contract;
  • For branch offices, Photocopy of BIR Certificate of Registration of the Head Office.
  • For Individual

>>>  Marriage Contract

>>> Birth Certificate of dependents

  1. Pay a registration fee of P500.00 using BIR form 0605 with Authorized Agent Bank (AAB) located within the revenue district or in the absence of an AAB, to the Revenue Collection Officer.
  2. Display in a conspicuous place within the place of business the Certificate of Registration (BIR form 2303), the registration fee for the current year and “Notice to the Public/Ask for Receipt” signage.
  3. Accomplish BIR form 2000 and pay documentary stamp on Subscribed Capital Stock for Corporation and documentary stamp on lease contract.

 B. How to register the books of accounts?

All books of accounts (i.e. journals, ledger etc,) are required to be registered before using any of them. However, VAT taxpayers are required also to register and maintain, in addition to the regular accounting records, subsidiary sales journal and subsidiary purchase journal on which the daily sales and purchases are recorded.

  1. Accomplish BIR Form No. 1905
  2. Submit to the RDO the books of accounts for stamping together with other requirements stated below:
  • For new taxpayer

>>>  BIR Certificate of Registration

>>>  Registration Fee

  • For old taxpayer – renewal, same requirements above and previous books of accounts with last entry.

C. How to secure the Authority to Print Receipts/Invoices (ATP)?

All taxpayers engaged in business are required to secure an Authority to print receipts/invoices before printing the same. Proceed to the RDO and accomplish Application for Permit to Print Receipts, Sales or Commercial Invoices (BIR Form 1906) together with the following:

  • Printer’s Job Order
  • Final and clear sample of receipts and/or invoices, containing the necessary information, including the name, business style, TIN, business address of the person or entity to use the same and word “VAT or Non-VAT” whichever is applicable;
  • Photocopies of TIN Card and Proof of Payment of Registration Fee (BIR Form 0605) for both the printer and taxpayer and BIR Certificate of Registration;
  • For subsequent application present the previous Authority to Print Receipts and invoices and last booklet printed together with other requirements in securing Authority to Print Receipts/Invoices (ATP) except TIN card.

Each establishment (head office or branch) Shall be covered by one application for permit to print receipts/invoices and be issued one and separate permit to print receipts/invoices with mention of name of printer, address, range of serial numbers and number of booklets.

 D. How to register manually-printed receipts or sales/commercial invoices prior to their use?

After printing of receipts/invoices, a Printer’s Certificate of Delivery of Receipts and invoices (PCD) shall be issued by the printer.

  1. A PCD is a certificate issued by the printer to its client every time a delivery of the ordered receipts/invoices, is made. The printer shall have the PCD stamped “Registered” by the BIR office having jurisdiction over the taxpayer’s place of business.
  2. Within (30) days from issuance of the PCD, the taxpayer or printer, as the case may be, shall submit to the concerned BIR office that has jurisdiction over the taxpayer-user’s principal place of business the triplicate copy of the PCD, together with the certified photocopy of approved ATP and the taxpayer’s Sworn Statement enumerating responsibilities and commitments of the taxpayer-user. One copy thereof shall likewise be submitted to the BIR Revenue District Office that has jurisdiction over the principal place of business of the printer. (Quintuplicate Copy)

E. What are the responsibilities of a taxpayer while the business is in operation?

  1. Pay annually registration fee of P500.00 for every separate or distinct establishment or place of business on or before January 31 (BIR form 0605)
  2. Display the BIR Certificate of Registration, the Registration fee for the current year and the “Notice to the Public/Ask for Receipt” signage in such area conspicuous to the public view within the establishment.
  3. Use only registered cash register machines, point-of sale machines, and other similar devices (for those who opted to use these machines in lieu of the registered sales invoices/receipts).
  4. Issue registered invoices/receipts for sale of goods or services as required and secure ATP before printing of new receipts/invoices by presenting together with the other requirements, photocopy of previous ATP or photocopy of the last receipt/invoice;
  5. Register and maintain books accounts in the business permits at all times
  6. Preserve all books of accounts for audit purposes within 3 years from the last day prescribed by law for the filing of return or actual date of filing of return, whichever comes later;
  7. Withhold taxes on compensation of employees, and on payments subject to final and expanded withholding tax and remit the correct tax as withheld;
  8. File the necessary returns and pay the corresponding correct taxes at the time/s required by law.

F. Retirement/closure/cessation of business operation

Requirements in case of retirement of business operations

In case of retirement of business, there is a need to notify the RDO, by accomplishing BIR Form No. 1905 and submit together with the following requirements:

  1. Letter request for cessation of registration
  2. Existing BIR Certificate of Registration (for surrender)
  3. Inventory list of unused invoices and receipts
  4. Unused invoices and receipts for cancellation
  5. Dissolution papers (Board Resolution, bankruptcy declaration)
  6. Certificate of closure from Municipal Office
  7. Certificate of closure from Barangay
  8. Two (2) years latest income tax return
  9. List of “Open Cases” per BIR Case Monitoring System (CMS)

An audit or investigation is necessary to determine any delinquent or unpaid tax liabilities.

 F. Who are those taxpayers required to Issue receipts?

All VAT Taxpayers shall issue receipts/invoices regardless of the amount of sale. However, non-VAT taxpayers are required to issue receipts/invoices for each sale or transfer of merchandise or for services rendered valued at P25.00 or more.

Disclaimer: The following requirements disclosed above may subject to changes that depends on the needs of the BIR and their latest issuance. I do not claim full accuracy of the said data because of the changing need of the Bureau. This data may or may not be updated as of the moment.

 

The Science Behind Managing People Effectively In an Organization

pexels-photo-776615.jpegBy: Rodrigo B. Niango Jr.
Pamantasan ng Lungsod ng Maynila – Philippine Institute of Certified Public Accountant
MBA-TEP Batch 9 (Subject: Organizational Behavior)
May 02, 2018

Organizational Behavior is a field of study that investigates the impact that individuals, groups, and structure have on behavior within organizations, for the purpose of applying such knowledge toward improving an organization’s effectiveness. Organizational Behavior studies three determinants of behavior in organizations: individuals, groups, and structure. In addition, OB applies the knowledge gained about individuals, groups, and the effect of structure on behavior in order to make organizations work more effectively. (Stephen Robbins, Organizational Behavior 9th edition, 2002,page 6)

Organizational behavior is the scientific study on how humans behave within an organization. This is where an individual with a distinct personality, gift, intelligence and skills go to a group, and mingle with each other in order to attain their individual goal and the organization’s goal. This where the behavior of each individual within a group are being analyze in order to utilize each uniqueness effectively for the benefit of the organization.

Organizational Behavior can be expressed as an interdisciplinary field of study as it put together the facts from a variety of relevant fields.

According to Stephen Robbins (2002) organizational behavior is an applied behavioral science that is built upon contributions from a number of behavioral disciplines. The predominant areas are psychology, sociology, social, psychology, anthropology, and political science. As we shall learn, psychology’s contributions have been mainly at the individual or micro level of analysis, while the other four disciplines have contributed to our understanding of macro concepts such as group processes and organization.

Psychology usually related to the study of human behavior, with qualities of the person and association of small social groups. The main center of consideration is on the person as a whole. Organizational Behavior discovers a great deal in subjects like personality, perception, emotions, attitude, learning, values, motivation, and job satisfaction etc. from the field of psychology.

Sociologists deal with the learning of social behavior, relationships among social groups and societies, and the maintenance of order. The main consideration is on the social system. Organizational Behavior has developed by dealing with various issues from sociology such as group dynamics, communication, leadership, organizational structures, formal and informal organizations, organizational change and development etc.

Social Psychology studies interpersonal actions. The social psychologists are concerned with inter group association, group decision making, effect of change on individual, individual’s responsiveness to change, and integration of individual needs with group activities.

Anthropology studies analyze the science of mankind and the study of human behavior. Issues like, individual culture, organizational culture, organizational environment, comparative values, comparative attitudes, cross-cultural analysis, are some of the familiar fields of anthropology and OB. OB is usually concerned with one of the main issues seeking immediate attention out of cultural system, the beliefs, customs, ideas and values within a group or society, and the contrast between the behaviors among different cultures. People try to depend on their culture to give them security and stability, and they can experience bad response to strange situation.

Political Science as a theme has various components, which directly influence human behavior in organizations as politics leads every organization. Many subjects of attention are directly connected to OB they are, power and politics, networking, political manipulation, conflict resolution, coalition, and self-interest enhancement.

Economic environment controls organizational climate. OB has refined to a great extent from various economic factors such as labor market dynamics, cost-benefit analysis, marginal utility analysis, human resource planning, forecasting, and decision making.

Industrial Engineering area has put in a lot of effort in the area of man-machine relationship through time and motion study, work measurement, work flow analysis, job design, and compensation management. All these areas have affected OB to some extent.

Medicines is one of the latest fields which is related to the field of OB. There are various common issues which are related to both the areas i.e. medicine and OB they are stress, tension and depression.

Semantics facilitates the study of relations within the organization. Misinterpreted communication and lack of communication leads to various behavior related problems in the organization. Therefore, adequate and effective communication is very essential for organizational effectiveness.

Managers get things done through other people. They make decisions, allocate resources, and direct the activities of others to attain goals. Managers do their work in an organization. This is a consciously coordinated social unit, composed of two or more people that functions on a relatively continuous basis to achieve a common goal or set of goals. (Stephen Robbins, Organizational Behavior 9th edition, 2002,page 2)

Leadership and managerial skills if being educated by the science of organizational behavior may have positive impact within the organization. Managing and leading the people especially in maximizing them may lead towards to an effective output and goals of the organization. Different people with different values, background and personality may make or break the organization that is why the science behind the organizational behavior is needed.

Contemporary models of organizational theory focus on one or more of these disciplines. The different contemporary models are population ecology, resource dependence, contingency, transaction cost and institutional model.

Population ecology organizational theory model focuses on the impacts of dynamic changes of phenomenon related to the birth and deaths of organizations and organizational forms. The study of population ecology is done over a long period of time. Most organizations have static structures that hinder adaptation to changes. The organizations with inflexible models of organizations are then more likely to crumble and cease to exist while more new flexible businesses , better adapted to change, will startup and strive. In population ecology, success then depends on an intrinsic ability to adapt in a changing environment.

The resource dependence model examines influence of power in the relation of exchange resources. In the resource dependence theory, organizational success happens when a business maximizes its power and influences in gaining the resources needed for the businesses’ survival. In this theory model, organizations that lack in resources will seek to become allies of other organizations who have more resources. The dependence relationship means that organizations become reliable on each other’s capacity to have access to necessary resources, and the power is given to the organization who possesses the highest amount of resources. The resource dependence organizational model theory originally discussed the relationship between organizations, but it also applies to the relationships between groups of a same organization.

Contingency organizational theory is actually a amalgamation of behavioral theories which contend that there isn’t one best way of organizing or leading an organization, but that other internal and external constraints help determine which organization and leadership types are best for the business. The four core elements of contingency theory are that there is not a universal way to manage, an organization’s design must fit with its environment, effective organization also depends on its fit with its subsystems and organizational needs are best satisfied when all previous three elements are met to achieve the main objectives of its work groups.

Transaction costs organizational systems takes into account social-psychological dimensions that are not considered in the costing of the production of goods or services. Transaction costs are difficult to measure and rely on human activities, but understanding the impact of human psychology in relation to its the organization’s operations is crucial to gain a full picture of an organization’s economics.

Finally, the institutional organizational theory model studies institutions’ structures and processes in relation to the functions of global governance. According to the model, institutional-based organizations should innovate in their structures, posses a participatory structure encouraging public and private participation, have strong trans-national coordination capacities, and establish dispute resolution mechanisms. Examples of organization that follow the institutional model include the World Trade Organization, International Labor Organization, The World Health Organization and the United Nations Environment Program. (Rochon, Marie-Pier. 2017, September 26. What Are the Five Contemporary Organizational Theory Models? Bizfluent., Retrieved from https://bizfluent.com/info-8544476-five-contemporary-organizational-theory-models.html)

 

 

 

 

 

 

 

 

REASONS TO CONSIDER OUTSOURCING (ACCOUNTING)

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  1. MOTIVATED BY WIN-WIN RELATIONSHIP (PRACTITIONER AND CLIENT)
  •  As the practitioner takes care of its credibility, it coincides with taking care of the needs of your company while maintaining independence.
  • Professional expertise is executed with proper diligence and higher quality, since it is specialized.
  • Efficiencies in focusing solely on operations by the client; while the outsourced accountants and auditors were focusing on financial reporting aspect of your operations and statutory compliance.

2. THE PRACTITIONER MAINTAINS ITS ELIGIBILITY TO PRACTICE

  •  As a professional practitioner we maintain the highest form of ideals and integrity.
  • We act and execute our brand in the most legitimate bureaucracy so as to preserve our value.
  • We believe that legitimate way of doing our job, would not only uplift our name in the profession but also legit costing is always cheaper and underrated  due to old traditions of the statutory compliance system.
  • Maintaining eligibility to engage in public practice is like maintaining a car you have to tend the basic needs of it in order to avoid the worst trouble shooting it can get. On the contrary, competitive outsourced accountants and financial auditors keep themselves updated and works towards the most idealistic Code of Ethics in order to perform and avoid any unfavorable situation that would discredit the profession.
  • We will not be responsible for any illegitimate way of getting the statutory compliances completed just to meet the requirements needed. We are vigilantly avoiding any acts that would decrease our marketability or the revoke of our license.
  • We do not believe in short cut, we believe in the right process.

3. BEING A MEMBER OF PHILIPPINE INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANT (PICPA) IN GOOD STANDING

  •  We are obliged to attend and update the necessary CPD (Continuing Professional Development) as a requirement for BOA (Board of Accountancy) accreditation, being so the latest issuances of accounting standards, taxation, SEC, soft skills etc. make us more competitive and reliant; not only limited to recording of books, filing Income tax returns, processing affidavits, filing audited financial statements to BIR and SEC.

4. WE HAVE SPECIALIZED PUBLIC PRACTICE AND CLAIMING AS AN EXPERTS.

  •  We are not just “some accountants”, we know how to meet your needs from constructing accounting cycle, statutory compliance (BIR, DTI, SEC),Book keeping, Accounting for internal reporting,external reporting, payroll accounting, managing BIR open cases. Financial auditing, internal auditing, corporate secretary, tax planning, accounting services “per se” whether assurance or non assurance services.

5. WE KNOW HOW THE TECHNOLOGY WORKS

  •  EFPS filings, Social Media, computerized accounting, etc. are the rapid changes that the modern and competitive accountants should meet in order to become more valuable in the present generation.
  • Technology makes life easier; we can send you the data that you need even when we are not inside your company premise.

6. THERE IS ALWAYS SOMEONE TO BLAME

  •  Outsourced personnel or professional would take any accountability for any mistake that has been made in financial operations.
  • We are definitely independent of your operations and want only what is the best for our relationship.
  • Credibility is our investment.

 CLICK HERE TO CONTACT US  

 

 

 

 

 

 

AFFIDAVIT ON HOW RATES OF SERVICES ARE COMPUTED REQUIRED BY BIR (FOR SELF-EMPLOYED PROFESSIONALS)

BASIS: REVENUE REGULATIONS 4-2014 SUBJECT    :  Guidelines and Policies for the Monitoring of Service fees of Professionals

What is the RR 4-2014 all about?

The BIR is imposing a new policy regarding the additional requirements in filing the Income tax return for self-employed professionals. They wanted the self-employed professionals to submit an affidavit(written statement or in words) showing their rates, how they are billing their clients and the factors that they consider in determining their professional fees.

The simple guidelines are as follows: “Policies and Guidelines (excerpts from RR 4-2014) 

1. Self-employed professionals shall register and pay the annual registration fee (ARF) with the RDO/LTDO having jurisdiction over them. In addition to the requirements for annual registration, all self-employed professionals shall submit an affidavit indicating the rates, manner of billings and the factors they consider in determining their service fees upon registration and every year thereafter on or before January 31. 

2. .Self-employed professionals are obligated to register the books of accounts and official appointment books of their practice of profession /occupation/calling before using the same. The official appointment books shall contain only the names of the client and the date/time of the meeting. They are likewise obligated to register their sales invoices and official receipts (VAT or non-VAT) before using them in any transactions.

 3. In cases when no professional fees are charged by the professional and paid by client, a BIR registered receipt, duly acknowledged by the latter, shall be issued showing a discount of 100% as substantiation of the ** “pro-bono’ service. “

*”pro-bono ” defined as doing something voluntarily; work donated for the common good

 Special Note: There is a TRO (Temporary restraining order for LAWYERS ONLY)

TRO

 ” The Supreme Court issued yesterday (April 22) a temporary restraining order (TRO) that stopped the Department of Finance (DOF) and the Bureau of Internal Revenue (BIR) from implementing Revenue Regulations No. 4-2014 that requires self-employed professionals to submit a notarized affidavit of their fixed service rates. However, said TRO was issued only as against LAWYERS. “

(excerpts from “Tax Management Association of the Philippines”)

 

 

 

 

WAIVER OF PENALTIES IMPOSED FOR eFPS FILED APRIL 16,2014

EFPS

 BASIS:( REVENUE MEMORANDUM CIRCULAR NO. 28-2014  )

SUBJECT: WAIVER OF PENALTIES FOR ELECTRONIC FILING AND PAYMENT SYSTEM (EFPS)

What is RMC No. 28-2014 all about?

There is a waiver of late penalties imposed on the ITR being filed, during the taxable year ended December 31, 2013 and quarter ended March 31, 2014. These are for those who use the eFPS system of the BIR and filed dated April 16, 2014.

Why there is a waiver?

There was a system downtime yesterday April 15, 2014, due to the volume of the tax payers/filing thru eFPS.

Exceptions and resolution:

The eFPS filers who are enrolled and have manually filed and paid their income tax due for above taxable periods will not be imposed of penalties, and are advice to file again using eFPS until April 25, 2014.