It is a fact for everyone that is difficult to trust online especially when money is concern. The buyer will be the first one to commit in transaction as they called it payment first while if you are a business owner, you really need to convince your client that you are legit. The best way to check and show the legitimacy of a certain business is through issuing BIR accredited receipt. As you can see there are several procedure that business needs to undergo before getting the official authority. You need to start in your local government to get cedula, barangay clearance, barangay permit, police clearance, bureau of fire permit, and business permit or Mayor’s permit. After that you need to apply in BIR wherein you need to submit documents and attend a seminar. Then they will issue you authority to print receipt for your business that you need to submit in authorized printing press. That’s a common process and it takes several days or even weeks depending on your local government and the press that print your receipt. From that long process your legitimacy will be verified. Imagine how many permit you need to submit even before touching Bureau of Internal Revenue. This is the reason why most businesses in the Philippines are not fully authorized to operate because they are missing some of these permits. But the fact is, those permits will help them verify their business especially if they are doing online transaction. In case that you are going to ask me why you should have receipt for your printing business, well that’s the answer. Actually there are several benefits you will get for complying those requirements and get the access to all kinds of receipt you need for your printing business.
Above is a mind conditioning so you will get convinced that you really need to have all these receipt. Because this is tedious. You need to spend money. You need to spend time. And I understand that is not convenient in most business that just got recently started. That steps I said above is giving you accreditation from BIR. That’s not the end of the story but the beginning for the actual receipt you need to have for your printing shop. Here in Philippines there are several types of receipt based on services you cater such as:
Sales Invoice – You need this receipt if you are selling products. But if that is the case you should indicate that you are in advertising solution or merchandising and not in mere printing services. For instance, aside from Tshirt printing, you actually selling plain T-shirt, so you need to issue invoice for Tshirt, and then OR for printing.
Official Receipt (OR) – This is your primary receipt as printing services. Services meaning your skills, time, effort, etc.
Job Order – This receipt is proof that your customer order a services from you. While most Pinoy are using scratch paper for job order, if you are dealing with Government based client you need everything to be official. This is a proof that they made an order from your business and then they will submit it to budgeting officer. This is essential on printing business so your client’s order will be transparent from the first day you made a deal. Also if you are accepting pay later basis not only with government project, this will help you put all transactions and agreement in legal.
Charge Invoice – Once you completed the project, you will issue a charge invoice to your client explaining that you deliver such as number of goods or products and you are asking for a payment. Dealing with government, they need this for releasing a cheque. What I like in charge invoice, is the indication of payment agreement from your buyer. If you don’t have charge invoice, don’t issue OR as it serves different purpose. Giving them OR means they have already paid you. Charge invoice or slip also stands as billing statement. So this is very important when you want to engage on government project since they can’t release a payment without a official document that you already send them goods and they need to pay a certain amount. You are dealing with several people with different role in government administration, so you need to keep everything documented so it will be transparent as crystal clear.
Acquiring those receipts is not only protecting the interest of your buyer but also your business based on agreed payment term. We can’t deny the fact that credit tells several bad stories in the Philippines. This is where charge invoice will come in handy under a legal agreement. Failure to comply will let them face legal consequence. Of course this only effective on individual and not for government. That’s another story and don’t expect it is always easy and fast. But technically they pay some are late some are on time. Surely they pay but better to expect the worst.
In case that you don’t have in mind to deal with pay-later basis or not in mind to make a transaction with government. You only need Official Receipt for your printing business. But in my years in lanyard printing here in Capiz, I don’t see any disadvantage of acquiring supporting receipt for your business. You never know when the opportunity will knock on your door. It doesn’t cost that much and it has 5 years validity. Customers especially in government department such as Schools, Universities, Municipalities, Public Company, they love to deal with business they can comply all legal documents they need in auditing. Imagine we are here in Roxas City, but we are reaching Iloilo government with our affordable lanyard. They know that we can’t be as legit as we are if we can’t issue all those receipt.
I want also to include that additional receipt will not cost extra payment to BIR. It still the same. What disadvantage that most people think is that they need to make another payment to the printing press. Of course that’s business. Don’t feel sorry about that because you will get more from spending a little.
In my next post, I will share to you how can you make a deal with government. Are you familiar with PhilGeps or bidding system? This is a jumpstart of your campaign. I will tell you, you will get more project you can ever imagine. Don’t feel sorry on paying tax, even Jesus paid tax. Like us, you will get customers not only in local area or provinces but nationwide because more people will start trusting you as legit supplier in the Philippines.