In my early years in the bank, one of my first assignments was as a CA/SA bookkeeper. One of my duties then was to monitor the balances of checking and savings accounts of our clients. Although I was more particular on the checking accounts, and I have closed quite a number of accounts then because some people don’t how to manage checking accounts.

We all know that a checking account is an important tool to an entrepreneur. Aside from it being a convenient way of paying obligations, it also allows for easier recording and monitoring of expenses. However, as great as a financial tool it is, the checking account can cause the entrepreneur’s downfall when improperly handled.

You really don’t need to have a complicated accounting system to be able to manage your account well. It’s as simple as recording your deposits to your account, as well as your check issuances. That way, you would be able to see at a glance your current balance, and how much you can issue a check to.

Clients who call the bank to ask their balance is a tell-tale sign of an account holder who does not monitor his account well. A simple lapse could cause him to issue a check beyond his account’s balance, and it’s hardly the bank’s fault.

When such a scenario occur, their account would incur an overdraft or a negative balance, and if the needed funds were not deposited within the bank’s allotted time, said check will be returned. Hence the term ‘bouncing check.’

This can cause severe damages to the entrepreneur’s image, as well as finances.

He will be made to pay charges (P1,000 plus 200 per P40,000 per day, plus another P1,000 plus P200 per P40,000 per day if it was returned. Note: Please informed me if it’s already updated), and at the same time the payee of the returned check would have the impression that the entrepreneur (issuer) is not credit worthy.

Frequent occurrences of overdrafts would cause closure of your checking account by the bank. That’s only half of the problem, an account closed due to improper handling would be echoed through other banks, via the negative data bank (NDB). The possibility of opening a new checking account with other banks would be then difficult, if not impossible.

Checking accounts with ATM access too? I would advise against it, unless you really have control over your finances. Because you can withdraw from any ATM anytime, you sometimes forget about the outstanding checks you have issued. This again, could result to an overdraft.

Checks are negotiable instruments and are widely used in business. But opening a checking account is not a privilege that is available to every individual. So if you have one, be sure to manage it wisely. Take note of the precautions stated above.

The Bureau of Internal Revenue (BIR) issued a new taxpayer rule that aims to expand the coverage of its electronic filing and payment system or eFPS.

eFPS, which was launched by BIR in 2001 to simplify filing and payment of taxes as well as improve taxpayers’ compliance, used to require only large taxpayers to use the system, or those with net worths of at least P300 million, insurance companies, and banks.

Under Revenue Regulations (RR) 3-2009 which the agency released last March 31 and took effect this month, aside from large taxpayers, direct non-large taxpayers which belong to top 20,000 private firms to use the eFPS facility in filing their returns and paying taxes.

Non-large taxpayers belonging to the top 20,000 corporations is defined in RR 14-2008, released by BIR last November 26 as follows:

• those duly notified by the BIR Commissioner;
• those with net value-added tax paid or payable for the preceding year of at least P100,000;
• taxpayers with annual income tax paid or payable for the preceding year of at least P200,000;
• any taxpayer with percentage taxes for the preceding year of at least P100,000;
• those with whole gross sales for the preceding year of more than P10 million; and
• taxpayers with gross purchases for the preceding year of more than P5 million.

With the expanded coverage, BIR Deputy Commissioner Nelson M. Aspe believes that it will make collection of taxes more convenient and more efficient, aside from allowing taxpayers to file their returns in the comfort of their own homes.

Aside from the benefits of fast processing, the electronic filing will also allow the agency to build and expand its database of taxpayers which will help them in monitoring payments.

“If the filings are done manually, there are chances that the data may be lost. Now that the filings are computerized, we can easily access the needed information,” Mr. Aspe said.

The Social Security System (SSS) has set aside an emergency loan fund of P500-million for the displaced workers of private companies who have closed down due to the effect of the recession.

SSS president and chief executive officer Romulo Neri said that the agency has already opened the emergency loan window and displaced workers can now for a loan of up to P15,000 from the emergency fund.

However, only those who lost their jobs from January 1, 2009 are qualified for the emergency loan.

Applicants should be members in good standing and that they have paid at least 12 months in membership contributions before they lost their jobs. They should not have been granted previously of refunds of contributions, retirement or total permanent disability benefits, and that they should not have any fraudulent transactions with the agency.

Displaced employees who seek to start a business can use the loan proceeds to start a home business.

A member can avail of the the maximum allowable loan amount which is equivalent to two month’s of the employee’s highest monthly salary for the past six months, and not exceeding P15,000.

Members are required to present a certification from their former employer, validated by the Regional Director of the Department of Labor and Employement (DoLE) covering the company as proof of separation from employment.

The loan will have a grace period of 12 months and payment of the amortization of 24 monthly payments will start on the second year. Interest rate is at 10-percent per annum, with the first year’s interest deducted in advance from the principal. Interest for the second and third years will be included in the monthly amortizations. A penalty of one percent per month will be imposed on those who will fail to comply.

Neri said the funds will be sourced from the Employees Compensation Commission (ECC) of the DoLE since their agency has already reached the maximum amount that it can loan out, which is 10 percent of its reserves.

You can visit the neareast SSS office in your area to inquire about the program. Be sure that you are qualified and have your documents ready so as not to waste any time.