BIR Books of Accounts: Manual, Loose-Leaf, and Computerized Accounting System Requirements

Every business registered with the BIR must maintain Books of Accounts recording its transactions, in one of three formats: manual (pre-printed ledgers), loose-leaf (computer-generated but printed and bound), or a Computerized Accounting System (CAS). Which format applies depends mainly on gross sales volume and whether the business uses point-of-sale systems, and the choice determines what has to be registered with the BIR before the books can be used.

What are the three Books of Accounts formats? #

Books of Accounts record a business’s financial transactions in the format the BIR recognizes for registration and audit purposes, and the three formats carry different setup requirements. Manual books are pre-printed columnar journals and ledgers bought from a bookstore and registered once at the RDO; loose-leaf books are prepared electronically but printed and bound before filing; a CAS keeps records fully within accounting software with no printed ledger requirement during the year.

When is manual registration enough, and when is loose-leaf required? #

Manual books suit a business with low transaction volume and no accounting software, registered once at the RDO with no annual re-registration — pages are simply replaced with a newly registered set once the current book is full. Loose-leaf books apply once a business generates its ledgers electronically but still prints and binds them for filing; this requires a Permit to Use Loose-Leaf Books of Accounts, filed on BIR Form 1900, valid only for the taxable year stated on the permit and renewed by filing a new Form 1900 each year.

When does a Computerized Accounting System become mandatory? #

A CAS is required, not optional, once a taxpayer’s annual gross sales or receipts exceed ₱3,000,000, or once the taxpayer is required to use a Point-of-Sale or Cash Register Machine system for issuing receipts. Above that threshold, the business must secure a Permit to Use CAS from the BIR before relying on it exclusively — though Revenue Memorandum Circular No. 29-2019 allows taxpayers using qualifying off-the-shelf accounting software to submit a Sworn Statement in place of a full system evaluation, shortening the approval process for common commercial software rather than custom-built systems.

Did the EOPT Act change the cost of registering books? #

Registering Books of Accounts used to carry the same ₱500 Annual Registration Fee (ARF) that applied to business registration generally, paid via BIR Form 0605. The Ease of Paying Taxes Act (RA No. 11976) abolished the ARF effective January 22, 2024, so book registration in 2026 requires no ARF payment regardless of format — manual, loose-leaf, or CAS.

How long must Books of Accounts be preserved? #

Books of Accounts and related accounting records must be preserved for five (5) years from the day following the deadline for filing the relevant return, or from the date of actual filing if that’s later. Manual and loose-leaf books must be preserved in hard copy; computerized books are preserved in electronic form. This retention rule applies to the books themselves — for how long specific supporting documents like BIR Form 2307 and DAT files must be kept, see How Long to Keep BIR Form 2307 and DAT File Records, which covers document-level retention rather than the books-of-accounts registration format decided here.

A worked example #

A retail sari-sari store owner with ₱600,000 in annual gross sales registers manual books at the RDO once — no CAS or loose-leaf permit needed given the volume, and no annual renewal. Three years later, after expanding into a mini-mart with ₱3,500,000 in annual gross sales and a POS system for receipts, the same owner must secure a Permit to Use CAS (or file the RMC No. 29-2019 sworn statement if using off-the-shelf POS-linked accounting software) before continuing to rely on the computerized records the POS generates.

Summary #

Manual, loose-leaf, and CAS books of accounts carry different registration paths, and crossing ₱3,000,000 in gross sales — or adopting a POS system — moves a business from optional to mandatory CAS registration. The EOPT Act removed the ₱500 fee that used to accompany registration. Pair this with How to Register a New Business with the BIR for the registration sequence that precedes book selection, and How Long to Keep BIR Form 2307 and DAT File Records for document-level retention rules.