My First Investing/Trading Books

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When I was learning about investing in the stock market, I needed books for more information. There are a lot of free pdf on the web but the books that I like, I want to have a hard copy of it so that my children maybe can read it someday. Maybe that will be the legacy that I'll be leaving them. I want them to know money management as it is very important. If only I have known that when we were kids, maybe I have chosen a different path. So, I went to check the bookstore and EXPENSIVE!! I searched for online bookstores that offers affordable books like amazon and I found at about BOOK DEPOSITORY. These are my first books. Jesse Livermore's Methods of Trading in Stocks - Richard Wyckoff This was my first ever book about trading. It has only 32 pages and can be read in one sitting but full of information. It tells about how Livermore's preparation before and after trading, money management, news, stocks to trade and pyramiding.   How To Trade in Stocks - Jesse Li

Books Of Accounts

There are three types of accounts required by BIR:

Manual Books of Accounts

These are the books you can buy in office supplies stores. The books should be updated manually (handwritten). Below are the common books used:
  • General Journal - debit and credit principle. It's like a diary where you will record your transactions in chronological order according to the date.
  • General Ledger - this is the summary of all your accounts. This is used to prepare your financial statements. 
  • Cash Receipts Journal - where you will record cash sales or any collection of your receivables. Put the official receipt number as your reference. 
  • Sales Journal - where you will record your sales on credit. Reference number is your sales invoice.
  • Cash Disbursements Journal - where you will record all your cash payments or expenses made.
  • Purchase Journal - where you will record your purchases made on credit.
*To know how to use, kindly check my blog about bookkeeping.

The number of books to be used will depend on the nature of your business. Usually the BIR examiner will tell you what books to use. If he forgot to tell you, you can ask them what books to use.

Registration deadline is "January 30 of the following year". However, RMC 82-2008 clarifies that a taxpayer where his/her manual books of accounts previously registered but whose pages are not fully exhausted can still be used in the succeeding years without the need of re-registering or re-stamping the same, provided, that the portions pertaining to the particular year should be properly labeled or marked. 

Loose-leaf Books of Accounts

This is similar to the manual books of accounts. The only difference is instead of being handwritten, it uses a computer to record the entries (MS Excel, Google sheets etc).Sample print-outs (book-bounded) will be required to be printed for BIR approval.

However, unlike manual books of accounts, the registration deadline is "15 days after the end of the calendar year". These records should be printed and book-bounded together with a treasurer's affidavit indicating the completeness and accuracy of the books. If the number of pages per books is just minimal, you can ask the BIR if you can combine all books but properly labelled as to what kind of book.

Computerized Books of Accounts/Computerized Accounting System (CAS)

This is different with the loose-leaf books. Sometimes you need to clarify this with the examiner since same Form 1900 is being used. CAS is the use of accounting softwares like ERP, SAP, Peachtree etc. You need to provide proof to BIR that the system you will be using is accurate and capable of keeping the books of accounts. There are a lot of requirements like system and process flow of the software, back-up or disaster recovery plan etc. (refer to RMO 21-2000 for more details about the application and requirements)

Same as loose-leaf books, the CAS generated books should be stored in a CD properly labelled with the name of the taxpayer, taxable year, serial number and volume number of the books of accounts within "30 days from the close of the taxable year". A treasurer's affidavit needs to be attached also.

So those are the books of accounts. Another thing to note is that, if your quarterly sales exceed P150,000, you need to submit audited financial statements to the BIR together with your annual income tax return unless you opted for the optional standard deduction (OSD).








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