How to Register Books of Accounts with BIR
All taxpayers engaged in trade, business, or the practice of a profession in the Philippines are required to register their books of accounts with the Bureau of Internal Revenue (BIR) before use. Books of accounts serve as the official record of all business transactions and are essential for proper tax compliance. This guide explains the types of books you need, how to register them, the fees involved, and everything you need to know to stay compliant.
Books of Accounts Registration at a Glance
Estimated Cost
P30 Documentary Stamp Tax (DST) per book for loose-leaf, or P15 per book for bound/manual books. Plus the cost of the blank books themselves.
Deadline
Must register before January 30 each year for new books (annual registration), or upon new business/professional registration with BIR.
Key Fact
Under the National Internal Revenue Code (NIRC), failure to register books of accounts or keep them properly updated is punishable by fines and penalties. Books must be preserved for at least 10 years.
Types of Books of Accounts
The type and number of books you are required to maintain depends on your taxpayer classification and the nature of your business or profession.
Professionals / Self-Employed
Minimum 2 Books
Freelancers, doctors, lawyers, accountants, and other professionals engaged in the practice of their profession need at minimum:
- Journal (record of daily transactions)
- Ledger (summary of all accounts)
Business Owners
Up to 6 Books
Sole proprietors, partnerships, and corporations engaged in trade or business may need up to six books:
- Journal
- Ledger
- Cash Receipts Book
- Cash Disbursements Book
- Sales Book
- Purchase Book
Simplified Books (8% Flat Tax)
Simplified Set
Taxpayers who elected the 8% flat income tax rate option (gross sales/receipts not exceeding P3 million) may use simplified books of accounts:
- Simplified Journal (or Cash Book)
- Simplified Ledger (optional, but recommended)
- Records of sales/receipts and expenses
Manual vs. Computerized Books of Accounts
BIR allows taxpayers to maintain their books of accounts either manually or through a computerized accounting system. Each method has different registration requirements.
Manual (Bound Ledgers)
P15 DST per book
Traditional bound books (columnar notebooks or pre-printed accounting books) that are physically stamped and registered by the BIR at your Revenue District Office (RDO).
- Purchase blank bound books from bookstores
- Bring to RDO for stamping and registration
- BIR stamps each page with official seal
- All entries must be written in ink
- No erasures allowed -- use single-line strikethrough
Computerized (Loose-Leaf / CAS)
P30 DST per book (loose-leaf)
Digital or computer-generated books printed on loose-leaf sheets, or maintained through an approved Computerized Accounting System (CAS) or its components.
- Loose-leaf: Requires BIR permit to use loose-leaf books (Authority to Use Loose-Leaf)
- CAS: Requires BIR approval via BIR Form 1900 (Application for Authority to Use Computerized Accounting System)
- Print and bind at end of each taxable year
- Submit bound printout to RDO for stamping
- Must maintain backup copies of electronic data
Requirements for Registration
| Requirement | Details |
|---|---|
| Books of Accounts (Brand New, Unwritten) | Purchase brand new, blank books from any bookstore. For manual books, use bound columnar notebooks or pre-printed accounting books. The books must be completely unwritten -- BIR will not stamp used or partially filled books. |
| BIR Form 1905 | Application for Registration Information Update. Use this form when registering new books of accounts for the first time, or when updating your book registration details. Alternatively, some RDOs allow direct walk-in registration -- simply bring the books to your RDO. |
| Certificate of Registration (BIR Form 2303) | Your COR proves that you are a registered taxpayer. Bring the original and a photocopy. The COR shows your RDO, TIN, line of business, and registered tax types -- all of which will be verified during book registration. |
| Documentary Stamp Tax (DST) Payment | P30 per book for loose-leaf books, or P15 per book for bound/manual books. Pay this at the Authorized Agent Bank (AAB) within the RDO or through the BIR's online payment channels. |
| Previous Year's Books (for Annual Registration) | If you are registering new books for the current year, bring your previous year's books for the BIR to verify that they have been properly closed and that all pages are accounted for. The BIR officer will check the last entry and close out the old books. |
| Valid Government-Issued ID | At least one valid ID with photo and signature (e.g., passport, driver's license, PhilSys/National ID, UMID, SSS ID, PRC ID). Bring the original and a photocopy. |
Step-by-Step: How to Register Books of Accounts
Follow these five steps to properly register your books of accounts with the BIR. This process applies to both new registrations and annual renewals.
Determine Which Books You Need
Before purchasing any books, determine which type and how many books you need based on your taxpayer classification. Professionals and self-employed individuals typically need a Journal and a Ledger (2 books). Business owners may need up to 6 books. If you elected the 8% flat income tax rate, you can use simplified books.
Tip: Check your BIR Certificate of Registration (Form 2303) or consult with your RDO to confirm exactly which books are required for your specific type of business or profession. Getting the wrong type of books will waste your time and money.
Purchase Blank Books
Buy brand new, blank books of accounts from any bookstore or office supply store (e.g., National Bookstore, Fully Booked). For manual books, purchase bound columnar notebooks -- commonly available in 4, 6, 8, 10, or 14 columns. Make sure the books are completely blank and unwritten. Do not write any entries yet -- BIR must stamp the books first before you can start using them.
Important: Label each book with its designated purpose (e.g., "Journal," "Ledger," "Cash Receipts Book") on the cover page before bringing them to the RDO. Write your business name, TIN, and address on the first page.
Bring Books to Your RDO for Registration and Stamping
Visit your Revenue District Office (RDO) -- this is the same RDO where you are registered as a taxpayer. Bring all the required documents: your blank books, BIR Form 1905 (if applicable), your COR (Form 2303), a valid ID, and the previous year's books (if this is an annual registration). Present everything to the officer at the registration window.
The BIR officer will verify your registration, count the pages of each book, and stamp each page with the official BIR seal. The officer will also record the total number of pages and the date of registration on the first and last pages of each book.
Note: Processing time varies by RDO. Some offices can process the registration on the same day (within 1-2 hours), while busier RDOs may require you to return the next day. Go early in the morning for faster service.
Pay the Documentary Stamp Tax (DST)
Pay the required DST at the Authorized Agent Bank (AAB) within the RDO or at any accredited bank. The fee is P15 per book for bound/manual books or P30 per book for loose-leaf books. Keep the payment receipt -- you will need to present it to the BIR officer as proof of payment.
Example: If you are a self-employed professional registering 2 bound books (Journal and Ledger), your total DST is P15 x 2 = P30. If you are a business owner registering 6 loose-leaf books, your total DST is P30 x 6 = P180.
Keep Books Updated Throughout the Year
Once your books are registered, you are legally required to maintain and update them regularly. Record all business transactions -- income received, expenses paid, sales made, purchases completed -- in the appropriate books. Entries should be made in chronological order and must be supported by official receipts and invoices.
Remember: Books of accounts must be preserved for a period of 10 years from the last entry. The BIR may audit your books at any time, so ensure they are accurate, complete, and readily available. At the end of each taxable year, close your books and register new ones before January 30 of the following year.
Penalties for Non-Registration or Non-Keeping of Books
The BIR imposes penalties on taxpayers who fail to register, maintain, or keep their books of accounts properly. Under the National Internal Revenue Code (NIRC), violations include:
- Failure to register books of accounts: Fine of P10,000 for the first offense, P20,000 for the second offense, and closure of business establishment for subsequent offenses.
- Failure to keep books of accounts: Fine of not less than P50,000 but not more than P100,000, and/or imprisonment of not less than 2 years but not more than 6 years.
- Making false entries or records: Considered tax fraud, punishable by a fine of not less than P50,000 and imprisonment of not less than 2 years but not more than 4 years.
- Failure to preserve books for 10 years: The BIR may assess additional taxes based on best available data if books cannot be presented during an audit.
Example: Juan Registers His Books as a New Freelancer
Juan is a newly registered freelance graphic designer. He obtained his TIN, filed his BIR Form 1901, and received his Certificate of Registration (COR). Now he needs to register his books of accounts before he can start recording transactions. Here is how Juan completed the process:
Checked His COR and Determined Required Books
Juan reviewed his COR (Form 2303) and confirmed that as a self-employed professional, he needs two books: a Journal and a Ledger. Since his estimated annual gross receipts are below P3 million, he elected the 8% flat income tax rate, which means he can use simplified books. He decided to go with manual bound books for simplicity.
Purchased Blank Books
Juan went to National Bookstore and purchased two bound columnar notebooks -- one for his Journal (6-column) and one for his Ledger (10-column). Total cost for the blank books was about P200. He labeled each book with "Journal" and "Ledger" on the cover and wrote his name, TIN, and business address on the first page of each book.
Visited RDO for Registration and Stamping
Juan arrived at his RDO early in the morning (around 8:00 AM). He brought his two blank books, his COR (Form 2303), and a valid ID. He submitted everything at the registration window. The BIR officer counted the pages of each book, stamped every page with the official BIR seal, and recorded the number of pages on the first and last pages. The entire process took about 1 hour.
Paid the Documentary Stamp Tax
After the stamping, Juan went to the Authorized Agent Bank (AAB) inside the RDO to pay the DST. Since he has 2 bound books, the total DST was P15 x 2 = P30. He kept the official receipt as proof of payment.
Started Recording Transactions
With his registered books, Juan started recording all his freelance income and business expenses. Every time he receives payment from a client, he records it in the Journal with the date, description, and amount. At the end of each month, he summarizes the entries in his Ledger. He keeps all official receipts and invoices as supporting documents.
Cost Summary for Juan's Book Registration
Total time at RDO: approximately 1-2 hours. Juan will need to register new books before January 30 of the following year.
Frequently Asked Questions
When do I need to register my books of accounts?
You must register your books of accounts before using them. For new registrations (first-time taxpayers), register your books immediately after receiving your Certificate of Registration (COR). For annual renewals, you must register new books before January 30 each year. The BIR will not accept books that have already been written in or used without prior registration.
Can I use a computerized accounting system instead of manual books?
Yes. You can use a Computerized Accounting System (CAS) or its components, but you must first obtain BIR approval by filing BIR Form 1900 (Application for Authority to Use Computerized Accounting System / Components). Once approved, you must still print your computerized books at the end of each taxable year, bind them, and submit the bound printouts to your RDO for stamping. You can also use loose-leaf books with a BIR permit (Authority to Use Loose-Leaf Books).
How long do I need to keep my books of accounts?
Under the NIRC, books of accounts and other accounting records must be preserved for a period of 10 years from the date of the last entry. This includes all supporting documents such as official receipts, invoices, bank statements, and vouchers. The BIR may examine your books at any time within the prescriptive period for assessment, so it is crucial to keep them organized and accessible.
What if I elected the 8% flat tax rate? Do I still need books?
Yes, even if you elected the 8% flat income tax rate, you are still required to maintain books of accounts. However, you may use simplified books -- typically a simplified journal or cash book that records gross sales/receipts and expenses. The BIR simplified bookkeeping requirement is less burdensome, but you must still register the books with your RDO and keep them updated.
Can I register books of accounts at any BIR office?
No. You must register your books of accounts at your assigned Revenue District Office (RDO) -- the same RDO where you are registered as a taxpayer as shown on your Certificate of Registration (Form 2303). If you have transferred your registration to a different RDO, you must register your books at the new RDO.
What happens if my books run out of pages during the year?
If your books run out of pages before the year ends, you must purchase a new blank book, have it registered and stamped by the BIR at your RDO, and continue your entries in the new book. Make sure to note on the last page of the old book that entries continue in a new volume, and on the first page of the new book, note that it is a continuation from the previous volume. Pay the DST for each new book.
Do I need to register books if I am purely an employee?
No. If you are a purely compensation income earner (employee with no business or professional income), you are not required to register books of accounts. Books of accounts are only required for taxpayers engaged in trade, business, or the practice of a profession. Your employer handles the recordkeeping and tax withholding for your compensation income.
Important Reminders
- Register books before use: Never write in your books before they are stamped and registered by the BIR. Unregistered books are considered invalid and may result in penalties.
- January 30 annual deadline: If your old books are full or the year has ended, register new books before January 30. Missing this deadline can result in penalties.
- Preserve books for 10 years: Keep all books of accounts and supporting documents (receipts, invoices, bank statements) for at least 10 years from the last entry. Store them in a safe, dry place.
- No erasures in manual books: For bound/manual books, do not use correction fluid or erase entries. If you make a mistake, draw a single line through the error, write the correct entry, and initial the correction.
- Keep books at your place of business: Books of accounts must be kept at your principal place of business or office at all times. They must be available for BIR inspection during regular business hours.
- Computerized books need BIR approval: If you want to use a computerized accounting system, file BIR Form 1900 first and wait for approval. Using an unapproved system may result in penalties and your computerized records being disallowed.
- Update books regularly: Do not wait until the end of the year to update your books. Record transactions as they occur -- ideally daily or weekly. This ensures accuracy and makes tax filing much easier.
- Bring previous year's books during annual registration: The BIR needs to verify that your old books have been properly closed before registering new ones. Forgetting to bring them may delay the process.
Need Help?
Contact BIR
- BIR Hotline: (02) 8538-3200
- Email: contact_us@bir.gov.ph
- Website: www.bir.gov.ph
- Facebook: @BIRgovph
- Office Hours: Monday to Friday, 8:00 AM to 5:00 PM
Disclaimer
This guide is provided for general informational purposes only. The requirements, steps, fees, and procedures mentioned here may vary depending on the BIR you visit. We recommend visiting your nearest BIR first to confirm the specific requirements and process before preparing your documents.