What books of accounts does the BIR require?
Since the TRAIN Law, Sec. 232(A) requires "relevant and appropriate" bookkeeping records authorized by the Secretary of Finance, from which all taxes due can be determined. The 1997 text named a journal and a ledger, and that pair is still the basic set RDOs register. Subsidiary books such as cash receipts, cash disbursements, sales and purchase books are optional (Sec. 233), but once kept they become part of your records. Most small businesses register the four-book set; ask your Revenue District Office if it expects more for your line of business.
| Taxpayer | Books required | CPA audit? | Note |
|---|---|---|---|
| Freelancer on the 8% rate | Journal and ledger | No (8% is capped at ₱3M) | No financial statements attached to the annual return, but books are still required (RR 8-2018) |
| Non-VAT sole proprietor, graduated rates | Journal and ledger | Only above ₱3M gross a year | Expense records support your deductions |
| Very small business | Journal and ledger, unless your RDO accepts a simpler format | No | The 1997 ₱50,000-a-quarter simplified-bookkeeping proviso is not in Sec. 232(A) as amended by TRAIN |
| VAT-registered sole proprietor | Journal and ledger | Above ₱3M gross a year | Sales and purchase books ease the VAT return |
| Corporation or partnership | Journal and ledger | Above ₱3M gross a year | Annual return comes with an Account Information Form |
| Employee with a side business | Journal and ledger for the business | Above ₱3M business gross | Salary is not recorded in the books |
Sources: NIRC Sec. 232(A) as amended by RA 10963 Sec. 71 (bookkeeping records and the ₱3,000,000 CPA threshold); Sec. 233 (RA 8424); RR 8-2018 Sec. 2(C). As of November 2026.
Manual vs loose-leaf vs computerized books of accounts
All three formats are accepted; they differ in permits and registration route.
| Manual | Loose-leaf | Computerized (CAS or CBA) | |
|---|---|---|---|
| What it is | Bound columnar books, handwritten | Computer-printed pages, permanently bound | Accounting software that keeps the books electronically |
| BIR permit | Registration only | Permit to use loose-leaf books | CAS acknowledgement certificate |
| Registration route | ORUS handles books; ask your RDO about counter filing | ORUS only, from 15 January 2026 | ORUS only, from 15 January 2026 |
| Year-end registration | Check with your RDO | Within 15 days | Within 30 days |
| Best for | Freelancers and small shops | Businesses already using a spreadsheet or app | Higher-volume businesses |
Sources: RMC 121-2023 (ORUS functions); RMC 4-2026; RMC 91-2024. Major CAS changes need an updated registration (RR 11-2024), and CAS and CBA users with e-invoicing must e-invoice by 31 December 2026 (RR 26-2025). As of November 2026.
Loose-leaf invoices are a separate matter: RMC 4-2026 keeps their registration manual at the RDO.
How to register books of accounts in ORUS
Log in to ORUS, choose books of accounts registration, list the books and submit; ORUS issues a QR-coded stamp.
Registering books of accounts in 2026
1Log in to ORUS
Use the account linked to your TIN.
2Choose books of accounts registration
List each book's type, quantity and volume, as in item 10 of Form 1905.
Bound loose-leaf
Register the year's bound volume
Within 15 days after the year ends.
Computerized
Register the year's books
Within 30 days after the year ends.
ORUS down
Register manually at your RDO
Only for documented downtime; keep proof.
3Receive the QR-coded stamp
Keep it with the books as proof of registration.
No BIR fee for registering books appears in the current rules. The ₱500 some guides mention was the annual registration fee, removed when RA 11976 rewrote Section 236 (effective 22 January 2024). For the account itself, see our ORUS guide.
Books of accounts deadlines and how long to keep them
Loose-leaf books within 15 days and computerized books within 30 days after the year ends; keep everything 5 years.
| What | Rule | Tax year 2026 | Basis |
|---|---|---|---|
| Register the business | Before starting business | Before the first sale | NIRC Sec. 236(A) |
| Manual books, new business | Not set in the issuances we confirmed | Check with your RDO | — |
| Bound loose-leaf books | 15 days after year-end | 15 January 2027 | RMC 91-2024; RMC 4-2026 |
| Computerized books | 30 days after year-end | 1 February 2027 (weekend move) | RMC 91-2024; RMC 4-2026 |
| Inventory list | 30 days after year-end | 1 February 2027 | RMC 57-2015 |
| Audited statements (over ₱3M) | With the annual return | 15 April 2027 | NIRC Secs. 51, 232(A) |
| Keep the books | 5 years from the day after the return deadline (or from late filing) | Until 15 April 2032 (computed) | NIRC Sec. 235, RA 11976 |
Sources: RMC 91-2024, RMC 4-2026, RMC 57-2015, RA 11976. The 2026 deadlines were extended to 31 January and 17 February; watch for a 2027 extension.
Days after year-end to finish each books task
Calendar-year taxpayers, tax year 2026
| Item | Days after 31 December |
|---|---|
| Bound loose-leaf books | 15 days |
| Computerized books | 30 days |
| Inventory list | 30 days |
| Annual return with audited statements | 105 days |
Five years, not ten. RA 11976 set a 5-year retention period, replacing the older 10-year rule. Sec. 235 counts it from the day after the deadline for filing the return for the year of the last entry, or from the actual filing date if the return was late. Tax year 2026 returns are due 15 April 2027, so keep 2026 books until at least 15 April 2032 (our computation); keep them longer if the return was filed late or is under audit.
Free printable templates for books of accounts
Download the four templates, print or bind them, and register them before use. The journal records each transaction in date order; the ledger sorts the same amounts by account. The BIR does not prescribe columns for manual books; these follow standard double-entry practice.
| Book | Columns |
|---|---|
| General journal | Date · Accounts and explanation · Ledger ref. · Debit · Credit |
| General ledger (one page per account) | Date · Particulars · Journal ref. · Debit · Credit · Balance |
| Cash receipts book | Date · Invoice no. · Payor and TIN · Cash (Dr) · Tax withheld per 2307 (Dr) · Fees or sales (Cr) · Output VAT (Cr) · Sundry |
| Cash disbursements book | Date · Voucher no. · Payee and TIN · Cash (Cr) · Expense (Dr) · Input VAT (Dr) · Tax withheld (Cr) · Sundry |
VAT columns are for VAT-registered businesses only. Add columns for accounts you use often.
General journal
Every transaction in date order, with the accounts debited and credited.
General ledger
One page per account with a running balance.
Cash receipts book
Every peso you collect, with the invoice number and who paid.
Cash disbursements book
Every peso you pay out, with the voucher number and who was paid.
Worked example: one month of a freelancer's books
| Date | Transaction | Journal entry | Cash book |
|---|---|---|---|
| 2 Mar | Bills Client A ₱45,000 | Dr Receivable / Cr Professional fees ₱45,000 | — |
| 5 Mar | Pays internet ₱1,899 | Dr Internet expense / Cr Cash ₱1,899 | Disbursements |
| 12 Mar | Client A pays ₱45,000 | Dr Cash / Cr Receivable ₱45,000 | Receipts |
| 20 Mar | Bills and collects ₱30,000 from Client B | Dr Cash / Cr Professional fees ₱30,000 | Receipts |
| 28 Mar | Pays co-working ₱3,500 | Dr Rent expense / Cr Cash ₱3,500 | Disbursements |
Illustrative. If a client withholds, debit "tax withheld" for the Form 2307 amount instead of cash.
Month-end totals to post to the ledger
₱75,000 in, ₱5,399 out
Net cash ₱69,601. The fees total feeds the quarterly return; see freelancer tax.
Penalty for not keeping or registering books of accounts
The BIR's compromise for failure to keep or preserve books rises with gross annual sales. A compromise is a suggested settlement; on conviction, Section 275 allows a fine of up to ₱1,000, up to 6 months' imprisonment, or both.
Compromise for failure to keep or preserve books
By gross annual sales
| Item | Compromise in pesos |
|---|---|
| Up to ₱50,000 | ₱1,000 |
| ₱50,000 to ₱100,000 | ₱3,000 |
| ₱100,000 to ₱500,000 | ₱5,000 |
| ₱500,000 to ₱5 million | ₱10,000 |
| ₱5 million to ₱10 million | ₱15,000 |
| ₱10 million to ₱20 million | ₱20,000 |
| ₱20 million to ₱50 million | ₱30,000 |
| Over ₱50 million | ₱50,000 |
Common mistakes and consequences
| Mistake | Consequence | How to avoid it |
|---|---|---|
| Paying a ₱500 'registration fee' | Money paid for a fee that no longer exists | Register in ORUS; the ARF ended in 2024 |
| Registering loose-leaf books at the RDO | Refused without documented ORUS downtime | Use ORUS |
| Missing the 15-day loose-leaf deadline | Unregistered books at audit | Print and bind in early January |
| Assuming 8% filers need no books | Compromise for failure to keep books | Keep a journal and ledger |
| Using the old ₱150,000 audit test | Paying for an audit you do not need | Audit only above ₱3M gross a year |
Estimate late-filing penalties with the penalty calculator.
Buod sa Tagalog
Kailangan ng bawat negosyo at propesyonal na magtago ng journal at ledger para sa BIR; karamihan ay may cash receipts at cash disbursements book din. Mula 15 Enero 2026, sa ORUS lang nire-rehistro ang loose-leaf at computerized na libro: 15 araw pagkatapos ng taon para sa loose-leaf at 30 araw para sa computerized. Kailangan lang ng CPA audit kung lampas ₱3,000,000 ang benta sa isang taon. Itago ang mga libro nang 5 taon; wala nang ₱500 na annual registration fee.
Frequently asked questions
+What books of accounts are required by the BIR?
Section 232 of the Tax Code, as amended by TRAIN, requires bookkeeping records authorized by the Secretary of Finance from every person or company paying internal revenue taxes. In practice the basic set is a journal and a ledger. Most small businesses also keep cash receipts and cash disbursements books. Those extra books are optional, but once kept they form part of your records.
+How do I register books of accounts online through ORUS?
Log in to ORUS, choose books of accounts registration, list each book with its type, quantity and volume, and submit. ORUS issues a QR-coded stamp. Since 15 January 2026 this is the only route for bound loose-leaf and computerized books, except during documented ORUS downtime.
+Do freelancers on the 8% tax option still need books of accounts?
Yes. RR 8-2018 waives only the financial statements: an 8% filer need not attach them to the annual return. Bookkeeping and invoicing rules still apply, so keep and register at least a journal and a ledger. A cash receipts book makes quarterly totals easy.
+What is the deadline for registering loose-leaf and computerized books?
Bound loose-leaf books: within 15 days after the taxable year ends, so 15 January for calendar-year taxpayers. Computerized books: within 30 days, which in 2027 moves to 1 February because 30 January is a Saturday. The BIR extended both in 2026, so watch for announcements.
+Is there a fee for registering books of accounts with the BIR?
No BIR fee for registering books appears in the current rules. The ₱500 annual registration fee some guides mention was removed when RA 11976 rewrote Section 236, effective 22 January 2024. Your costs are the books themselves or the accounting software.
+How long must books of accounts be kept?
Five years, under Section 235 as amended by RA 11976, replacing the older 10-year rule. The law counts the five years from the day after the filing deadline of the return for the year of the last entry, or from the filing date if the return was late. Books for 2026 should be kept until at least 15 April 2032.
+Can I use loose-leaf books instead of manual books, and do I need a permit?
Yes. Loose-leaf books are computer-printed pages, permanently bound. They need a permit to use loose-leaf books, handled in ORUS, and each year's bound volume is registered in ORUS within 15 days after year-end. Loose-leaf invoices are still registered manually at the RDO.
+What is the penalty for not having books of accounts?
Under RMO 7-2015 Annex A, failure to keep or preserve books is compromised at ₱1,000 to ₱50,000 depending on gross annual sales. On conviction, Section 275 allows a fine of up to ₱1,000, imprisonment of up to 6 months, or both.
+When are books of accounts required to be audited by a CPA?
When gross annual sales, earnings, receipts or output exceed ₱3,000,000. The books are then audited yearly by an independent CPA and the annual return comes with an Account Information Form. The old ₱150,000-a-quarter threshold was replaced by the TRAIN Law in 2018.
Sources and references
- NIRC (RA 8424), Secs. 232, 233 — original 1997 text: journal and ledger; subsidiary books (checked November 12, 2026)
- RA 10963 (TRAIN Law), Sec. 71 — Sec. 232(A) as amended: bookkeeping records; CPA audit above ₱3,000,000 gross annual sales (checked November 12, 2026)
- RA 11976 (Ease of Paying Taxes Act), Sec. 33 — Sec. 235: 5-year retention and when it starts; no ₱500 fee (checked November 12, 2026)
- RMC 4-2026 — mandatory ORUS registration of books (checked November 12, 2026)
- RMC 91-2024 — books registration deadlines (checked November 12, 2026)
- RMC 121-2023 — ORUS functions (checked November 12, 2026)
- RR 8-2018 — 8% filers and financial statements (checked November 12, 2026)
- RMO 7-2015 — compromise penalties (checked November 12, 2026)
Related tools and guides
Author and editorial review
Deepak Middha, Chartered Accountant
Chartered Accountant with 18 years in hedge funds; writes and maintains sulat.ph. Every rate, ceiling, deadline and fee on this page is taken from the National Internal Revenue Code or a BIR issuance and was checked against that source on November 12, 2026. Where a figure could not be confirmed officially, the page says so.
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