What small business owners need to know!
Let’s be real: Kung small business owner ka, ang words na “Audited Financial Statements” ay parang alarm clock ng 4:00 AM, masakit sa tenga, masakit sa isipin, at nakaka-drain ng energy kahit kakastart pa lang ng araw.
Pero hold your wings, honey! Merong good news si Securities and Exchange Commission (SEC). They updated their rules, at ang balita? Exempted na ang mas maraming micro-enterprises sa pag-submit ng audited financial statements (AFS).
Ibig sabihin: Less paperwork, lower costs, at bawas-stress sa buhay nating mga lumalaban sa araw-araw na compliance (at sa traffic).
So… anong nabago? (Aside from our sleeping patterns)
Dati, ang threshold para ma-exempt sa audit ay ₱600,000 lang. Aminin natin, sa taas ng bilihin ngayon, kulang pa ’yan pambili ng kape para sa buong team (charot, pero half-true).
Pero ngayon, if your business has ₱3 million or less in total assets OR total liabilities, congratulations! You no longer need to submit audited financial statements.
- Before: ₱600,000 limit (Kahit maliit na shop ka lang, kailangan mo ng mahal na auditor).
- Now: ₱3 million limit (Mas realistic, mas magaan).
⚠️ Applicable lang ito sa financial statements for fiscal years ending on or after December 31, 2025. So kung ang deadline mo ay pang-2023 or 2024, sorry, the old rules still applies.
Bakit ito ginawa ng SEC? (Spoiler: Na-realize nilang pagod na rin tayo)
Audits are expensive. Minsan, mas mahal pa yung fee ng auditor kaysa sa kinita ng business mo nung taon na ‘yun. So the SEC’s goal is simple: make compliance more reasonable para sa mga small and growing businesses.
So, does this apply to you?
Quick Check: Micro entity ka ba o Small entity?
- Micro Entity
- Total assets/liabilities are ₱3 million or below.
- Hooray! No audit for you!
- Small Entity
- Assets/liabilities exceed ₱3 million but not more than ₱100 million.
- Pasensya na, tuloy ang audit life.
“Kung exempted ako, wala na ba akong gagawin?”
Sana nga wala na, ‘di ba? May kailangan pa ring i-submit, but simpler! Micro entities still need to submit financial statements using either the Income Tax Basis or PFRS for Small Entities.
And it needs to include the following:
- Statement of Management’s Responsibility (signed under oath)
- Statement of Financial Position
- Income Statement
- Notes to Financial Statements
(With two-year comparative figures, if applicable)
It’s like saying “Yes, kami pa rin ang responsible sa accuracy ng financial report, even without an audit.”
Still confused? Okay lang yan!
If this update made you think: “Okay… but does this apply to us?” You’re not alone. Compliance rules are not exactly light reading, na madaling intindihin.
So Happy Hive is here and we can help you with:
✅ Checking if you qualify as a micro enterprise
✅ Knowing what exactly to submit to the SEC
✅ Preparing financial statements without overcomplicating things
Connect with us here for a free consultation, kami na bahala sa compliance, so that you can focus on your business!
For more info and updates, you can also visit the Securities and Exchange Commission Philippines website: https://www.sec.gov.ph/