Common Accounting and Bookkeeping Practices in the Philippines


Accounting and bookkeeping practices vary in every country. But as a whole, the accounting services generally includes auditing, accounting, bookkeeping and related services. There is Public Accounting which consists of the audit and review function that acts as the check and balance of a company’s financial status. Then there is Management Accounting. This is another aspect in accounting services which gives business directions and provides strategic, tactical and operational decisions based on financial data. 

Bookkeeping, income tax preparation, business valuations, forensic accounting, tax compliance, investment advice, accounting system organization and design and management advisory services are the other accounting services that any Accountant in the field is bound to do. Now, where does online accounting system belong? It actually covers and encompasses most of the accounting practices.

Only an accountant knows the language of accounting. How about its functions and common practices? Well, of course there is such a thing as an accountant’s lingo but in this case, these practices are mostly used and required by law under some so-called standards.

In the Philippines, small and big businesses alike are mandated to comply with the Philippine Financial Reporting Standards (PFRS). The Philippine Financial Reporting Standards is a set of Generally Accepted Accounting Principles better known as GAAP that has been issued by the ASC or the Accounting Standards Council, a governing body that aids in governing and monitoring the preparation of financial statements. 

For any growing business, it is important to follow the standards set by the PFRS. Hence, it is helpful for any company to have an accounting manual with the specific guidelines that pertain to the following:

Appropriate Cash Management

– this is very important in every accounting process. There is nothing to account for when there are no resources or no cash to manage. With an online accounting system, appropriate cash management is a walk in the park.

  1. Correct approval of any disbursement of cash – this would mean that any expense or disbursement starting from purchase requisition to purchase order to check preparation and even up to recording should be taken into account for monitoring.

  2. Petty Cash Fund Set-up – This is part of the management of cash and the control over petty cash should be regulated, disbursed and replenished with the necessary documentations.

  3. Bank reconciliation – Check and balance is needed, thus there has to be a correct bank reconciliation.

  4. Documents archiving – A proper storage for documents is needed for future reference.

Reliable Inventory Management

– Inventory is where the investment is and it is vital for it to be managed precisely.

  1. Inventory management procedures – Systems should be in place and inventory monitored. An online accounting system can help promote a reliable inventory management.

  2. Inventory Management Control – With an online accounting system in place, there is better control in inventory.

Good Fixed Asset Management

– The company’s assets are resources for safe-keeping and also helps the operations of the company.

  1. Proper setting up and recording of assets based on PFRS

  2. Implementing controls over disposal of fixed assets
EasyFIS Logo

Easy FIS gives you a highly-accurate and real-time view of your financial statements.

Sign-up for a FREE EasyFIS Accounting System now!
EasyFIS Logo

Easy FIS gives you a highly-accurate and real-time view of your financial statements.

Sign-up for a FREE EasyFIS Accounting System now!

Proper OTC (Order to Cash) Process

  1. Establishing rules on returns, discounts and allowances

  2. Management of Receivables

  3. Efficient and correct monitoring of Sales and Receivables

Correct Purchase to Pay (P2P) Process

  1. Observing proper procedures starting from purchase requisition to purchase order to purchasing then to receiving the purchase than the payment of purchase 

  2. Correct substantiation of expenses

  3. Proper monitoring of expenses and payables

All these accounting and bookkeeping practices are easy to do with EasyFIS. It is an automated online account software as well as inventory management system that is well integrated, user-friendly and works perfectly in any kind of business start-up with the following features and benefits:

  • End-to-end accounting software with sales and inventory integration.
  • Software as a Cloud-Based and Services (SAAS).
  • Multi-currency. This system can trade in various currencies.
  • Multilingual.
  • Higher accuracy and real-time reporting.
  • Faster coordination with the team.
  • Cost-effective by reducing waste of paper and ink.
  • Low cost of installation and maintenance.
  • Improve customer service.
  • Filipino tax law is ready. EasyFIS follows the regulations and guidelines set by the Bureau of Internal Revenue (BIR).
  • Compatible with POS front-end software.
  • Multi-branch. The system has multiple stores, branches, and warehouses and can monitor sales and inventory for the entire company.

The standards set by the PFRS are easy to comply with the help of an online accounting system, EasyFIS. It can do wonders for your taxations needs. For queries, check out: Human Incubator at +63-32-256-2904 or +639088601619 or check our site:

EasyFIS Logo

Easy FIS gives you a highly-accurate and real-time view of your financial statements.

Sign-up for a FREE EasyFIS Accounting System now!
EasyFIS Logo

Easy FIS gives you a highly-accurate and real-time view of your financial statements.

Sign-up for a FREE EasyFIS Accounting System now!

Easy Series

EasyFIS Logo

EasyFIS is a Software-as-a-service (SAAS) sales, inventory and Accounting system designed for Micro, Small and Medium (MSME) Enterprises.

If you want to manage your business in real-time and in a WFH Work from Home Setup, EasyFIS can provide a turn-key solution to your most common business problems to effectively monitor your sales, checking your LIVE inventory stock quantity and most importantly the status of your business’ financial health.

On top of that EasyFIS is CAS (Computerized Accounting System) compliant ready for government taxation in the Philippines.

EasyHR Logo

EasyHR is a Software-as-a-service (SAAS) web application that helps to manage your Payroll and Human Resource Tasks easily and effectively.

Whether you are handling less than ten (10) employees or up to more than ten thousand (10,000) employees, EasyHR can do the job for you and saves you a lot of time in computing your Payroll and managing your Employee 201 Records anytime and anywhere.

But not only that, EasyHR further has an Employee Portal that allows your employees to access it online and check their own Payslips, Overtime, Leaves and Time Records. It saves a lot of time and money in printing these Payslips and paper wastage.

EasyPOS Logo

EasyPOS is a standalone Sales and Inventory system designed for businesses with Physical Stores and does not necessarily need an Internet or cloud solution.

The software is very easy to use yet already fully loaded with the necessary daily functions in running a store.

It already has a complete Sales and Inventory system with Item components.

Barcode and Touchscreen Interface that can be used for both groceries and restaurant setup respectively. Plus it is already BIR Accredited to legally issue Sales Invoice (SI) and Official Receipts (OR).

Chat with HII Easy Series

Typically replies within a few hours

Hi! How can we help you