Books of accounts: manual, loose-leaf or computerized?
Last reviewed · 7 min read · Checked against the BIR issuances listed under Sources
The short answer
The BIR recognises manual bound books, loose-leaf printed books (with a permit) and computerized books (with a CAS Acknowledgement Certificate). All are registered online through ORUS: manual books before use, loose-leaf within 15 days after year-end, computerized within 30 days after year-end. Books must be audited by a CPA once gross annual sales exceed ₱3 million. Since the EOPT Act, keep them for five years.
This is general information, not tax advice. Rules change and your case may differ, so check with your RDO or a CPA before you act on it.
Every registered business keeps books of accounts. The BIR recognises three kinds: manual bound books, loose-leaf printed books, and computerized books. Each is registered differently and on a different deadline. Here is which one fits a small store, how to register it, and how long to keep it.
The three types
| Type | What it is | What it needs |
|---|---|---|
| Manual | Permanently bound notebooks (journals and ledgers) you write in by hand | Registration with the BIR, then you write entries as you go |
| Loose-leaf | Pages printed from a computer, such as a spreadsheet or accounting app, then bound | A Permit to Use Loose Leaf Books of Accounts, and yearly registration of the bound books |
| Computerized | Books kept in a computerized accounting system (CAS) or computerized books (CBA) | A CAS Acknowledgement Certificate (or an older PTU), and yearly registration with the files on a USB in the prescribed format, plus an affidavit |
Manual books suit a small sari-sari store with few entries. Loose-leaf suits a store that already keeps its books in a spreadsheet or app and prints them. Computerized books are for businesses running a registered CAS.
Which books you keep
The Tax Code (Section 232) requires every business to keep "relevant and appropriate" books. Which ones depends on how you're registered and what you sell, so check your registration and ask your CPA.
- A journal and a ledger are the usual core.
- VAT-registered businesses have long been required to keep subsidiary sales and purchase journals too. Ask your CPA what your registration requires today.
- If you use a registered cash register, RR 11-2004 requires a cash register sales book for each machine. RMO 24-2023 says a registered POS doesn't need a manual sales book, because its backend reports replace it.
How and when to register
All books of accounts are registered online through ORUS (orus.bir.gov.ph), and ORUS issues a QR stamp. The deadlines under RMC 3-2023:
| Books | Deadline |
|---|---|
| Manual, new business | Before the deadline of your first quarterly or annual income tax return, whichever comes first |
| Manual, existing business with new books | Before you use them |
| Loose-leaf | Within 15 days after the end of each taxable year, or within 15 days of closing the business |
| Computerized | Within 30 days after the end of each taxable year |
RMC 4-2026 made online ORUS registration of loose-leaf and computerized books mandatory. Manual filing is allowed only when ORUS is down, with the BIR advisory or a screenshot of the error. It also moved the 2026 deadlines for those books: loose-leaf from 15 to 31 January, and computerized from 30 January to 17 February. Check each year for similar moves.
When your books need a CPA audit
If your gross annual sales are over ₱3,000,000, your books must be audited every year by an independent CPA, and your income tax return must come with an Account Information Form. The TRAIN law set this threshold in Section 232, replacing the old ₱150,000-a-quarter rule. The EOPT Act didn't change it.
How long to keep them
Since the EOPT Act, Section 235 says to keep books and records for five years. The five years start the day after the deadline for the return of the year of your last entry, or from the day you filed if you filed late.
RR 7-2024 says manual and loose-leaf books are kept as hard copies and computerized books as electronic copies. Keep them longer if a tax case is pending.
Older rules gave longer periods, including 10 years in some CAS rules. If you use a third-party system, ask your CPA which period applies to you.
Common mistakes
- Printing spreadsheet books without a loose-leaf permit. Printed books need the Permit to Use Loose Leaf Books.
- Missing the 15-day window after year-end for binding and registering loose-leaf books.
- Treating POS reports as your books. Sales reports are one input. The journal and ledger are still your books.
- Throwing records away too early. Keep the five years, and longer if an audit or case is open.
Books in Kassly
Kassly builds a General Journal, General Ledger, Trial Balance and Cash Disbursements Journal from your sales, expenses, purchases and payroll, as CSV or A4 PDF. That can help you or your bookkeeper prepare loose-leaf books. Kassly doesn't register your books with the BIR, and it isn't a BIR-accredited CAS. See books of accounts in Kassly.
Frequently asked questions
Can I use Excel for my books of accounts?
Yes, as loose-leaf books. Printed books need a Permit to Use Loose Leaf Books of Accounts, and the bound books are registered through ORUS within 15 days after the end of each taxable year.
When do books of accounts need a CPA audit?
When gross annual sales exceed ₱3,000,000. The TRAIN law set that threshold in Section 232 of the Tax Code, replacing the old ₱150,000-a-quarter rule.
How long must I keep my books?
Five years under Section 235 as amended by the EOPT Act, counted from the day after the deadline for the return of the year of the last entry. Keep them longer if a tax case is pending.
Sources
- Republic Act No. 10963, TRAIN law (approved 19 December 2017). Set the ₱3M VAT threshold and the 8% income tax option in lieu of graduated rates and percentage tax. https://lawphil.net/statutes/repacts/ra2017/ra_10963_2017.html. Checked .
- Republic Act No. 11976, Ease of Paying Taxes Act (approved 5 January 2024). Makes the invoice the main document for goods and services, sets the ₱500 invoice threshold for non-VAT sellers and keeps the ₱3M VAT threshold (Section 109(CC)). https://lawphil.net/statutes/repacts/ra2024/ra_11976_2024.html. Checked .
- BIR RR No. 7-2024 (effective 27 April 2024). The EOPT invoicing rules: required invoice contents, the ₱1,000 buyer-details rule, official receipts as supplementary documents, VAT sellers invoice every sale, non-VAT sellers who show VAT owe it plus 50%. https://bir-cdn.bir.gov.ph/BIR/pdf/RR%20No.%207-%202024.pdf. Checked .
- BIR RMC No. 3-2023. Books of accounts are registered online through ORUS; deadlines for manual, loose-leaf and computerized books. https://bir-cdn.bir.gov.ph/local/pdf/RMC%20No.%203-2023.pdf. Checked .
- BIR RMC No. 4-2026 (15 January 2026). Online ORUS registration of loose-leaf and computerized books is mandatory; 2026 deadlines moved to 31 January and 17 February. https://bir-cdn.bir.gov.ph/BIR/pdf/RMC%20No.%204-2026.pdf. Checked .
- BIR Citizen's Charter, 2026 edition. Service steps, times and fees: eAccReg enrollment, the CRM/POS Permit to Use (filed by the supplier's account, 2 days, no fee), PTU cancellation, CAS registration and books registration. https://bir-cdn.bir.gov.ph/BIR/pdf/BIR%20Citizen's%20Charter%20(2026%20Edition)%20final.pdf. Checked .
- BIR RR No. 11-2004. Rules on the accreditation, registration and use of cash registers and POS: displaying the PTU, notice before moving or changing a machine, the cash register sales book. https://elibrary.judiciary.gov.ph/thebookshelf/showdocs/10/39308. Checked .
- BIR RMO No. 24-2023 (26 June 2023). Accreditation of cash registers, POS and similar sales machines and software through eAccReg: the demo, 20-working-day issuance, required features, X and Z reading definitions, the grand total and reset counter. https://bir-cdn.bir.gov.ph/local/pdf/RMO%20No.%2024-2023.pdf. Checked .