Catch Up Accounting Services in the Philippines
Get your Historic Accounting Books, Finances and Taxes Back on Track and 100% Compliant
Why Is Catch Up Accounting Necessary?
How Our Catch Up Accounting Services Work
Historic Accounts Review
Risk Assessment Report
A Process-Driven Approach to Catch Up Accounting
Catch Up Accounting Services for Startups and SMEs in the Philippines!
What? Why? How?
What is Catch Up Accounting?
Certain companies and businesses in the Philippines may not have their accounting or BIR tax compliance records up to date. This can arise for a number of reasons. Whatever the reason, companies may require Catch Up Accounting services from an outsourced provider to get their books and compliance updated and back in good shape!
Catch Up Accounting is the process of reviewing historic financial periods of a company, understanding the various transactions and financial activities that occurred during these periods and performing Catch Up accounting and compliance work in relation to these periods in order to bring the finance management and compliance of a company fully back up to date!
The need for Catch Up Accounting services might arise at any time for any type of business in the Philippines and it can be an extremely important activity for any start-up, SME or larger corporation.
Once the Catch Up Accounting services have been performed and completed, a company can then understand the underlying reasons for the existence of poor accounting and finance management practices and put in place more efficient processes and controls to ensure that Catch Up Accounting services are not required again in the future!
Why Might A Business Require Catch Up Accounting?
There are a wide range of reasons for why a company might require Catch Up Accounting services!
A company might not have fully understood their accounting and compliance requirements – remember, compliance in the Philippines can be complex! A key member of the accounting and finance team might have departed without anyone taking over the company’s finance management during a particular period. Perhaps an audit firm has identified filing deficiencies that need to be rectified before the Audited Financial Statements can be completed and submitted to the SEC and BIR. Maybe the BIR itself has identified financial management or compliance issues. There might have been a period of significant business growth causing the company to place its focus on the commercial side of the business and lose focus on the finance and compliance side. Maybe a company is heading towards a due diligence process with a potential investor and needs to get its books and finance in shape first. Or perhaps, simply, there were just sub-standard finance and compliance processes and controls in place during a particular period of the company’s history.
Whatever the reason, engaging an accounting provider to perform Catch Up Accounting services for your business will not only ensure the company gets back on track from a finance management perspective, it can also give peace of mind and comfort to company owners, investors and shareholders that the business is now fully compliant.
How Does Catch Up Accounting Work?
At CloudCfo, we perform our Catch Up Accounting services with a real emphasis on process and output.
When we start to work with any new company, we will always do an initial review of the current status of the accounting books and levels of compliance with the local Philippine BIR reporting requirements. Having reviewed the books of accounts and current accounting processes, we will then identify the various steps that the company should take to rectify any areas of concern relating to historic finance periods from a financial and compliance perspective. We will then define a specific period for which Catch Up Accounting services might be required.
We will then start collecting and reviewing historic receipts, invoices, tax documents, expense documentation and other business transactions for the period in question. We will review the company’s accounts payable and accounts receivables position – always a key activity within the Catch Up Accounting process. We will also perform bank reconciliations – the process of matching business transactions with bank statements for the same historic periods.
Once that is complete, we will record the financial information accurately and conduct any necessary further reconciliations to get the latest and most complete picture of your company’s finances. All information collected will be recorded accurately within the company’s accounting books and presented in a way to ensure it shows a clear picture of the company’s financial position for the relevant financial periods!
The End Result and Next Steps
The ultimate objective of our Catch Up Accounting services for companies in the Philippines is to ensure a company’s books, accounts and tax compliance are fully updated and in line with SEC and BIR requirements. The company may also be obliged to file back taxes with the BIR or submit reports or other filings to the SEC or even the Local Government Unit (LGU). All of this enables our Team to ensure we have clean and accurate balances with which our accountants and bookkeepers can work.
However, we don’t stop there! If you need to perform Catch Up Accounting, there may be an issue with your company’s internal financial processes and controls. It might be that a company’s accounting and finance processes are not aligned with the particular business model. Or, there may never have actually been any processes in place in the first place!
So, the CloudCfo Team will also advise on best practices and processes for ensuring that your accounting and bookkeeping functions remain fully optimized and accurate going forward. This may include advice and recommendations on the use of cloud accounting software solutions, outsourced accounting and bookkeeping services, payroll optimization and robust controls to ensure your business never falls behind in its accounting, bookkeeping and tax compliance activities again!
A value-added Catch Up Accounting service can help your business transition from non-compliance and sub-standard accounting to fully updated books. This benefits a range of stakeholders including management, directors, shareholders and potential investors!