How to Make a Financial Report in the Philippines

July 11, 2025

For business owners in the Philippines, understanding how to create a financial report is important. Even if you’re not preparing it, knowing the process helps you stay compliant, track your business’s performance, make strategic decisions, and present your company more confidently to potential investors. We’ll explain the basics of writing a financial report to help you understand how it works, why it matters, and how it can benefit your business.

What is a Financial Report?

A financial report is a document that summarizes your business’s financial status over a specific period, typically monthly, quarterly, or annually. It outlines your income, expenses, assets, liabilities, and equity, providing insight into your company’s profitability and stability.

In the Philippines, financial reports are important for internal planning but are also a regulatory requirement. For example, Section 177 of the Revised Corporation Code requires corporations doing business in the Philippines to submit annual financial statements audited by a licensed Certified Public Accountant (CPA) to the Securities and Exchange Commission (SEC). The National Internal Revenue Code (NIRC), Section 232, as amended by the TRAIN Law, requires businesses with gross annual receipts or sales of ₱3,000,000 or more to submit an audited financial report to the Bureau of Internal Revenue (BIR).

Common components of a financial report include:

Income Statement – Shows revenues, costs, and profits or losses.
Balance Sheet – Lists assets, liabilities, and equity.
Cash Flow Statement – Tracks cash inflows and outflows.
Statement of Changes in Equity – shows how a company’s equity changes over a reporting period.
Notes to Financial Statements – Provides additional context and explanations.

How to Write a Financial Report

Creating a financial report involves collecting accurate financial data, organizing it properly, and presenting it in a clear and readable format. Here’s a step-by-step breakdown:

Gather Your Financial Records

Collect relevant documents such as sales invoices, receipts, payroll records, bank statements, and expense logs. Then, organize your data using accounting software or spreadsheets.

Prepare Key Financial Statements

Your financial report will typically include:

- Income Statement (Profit and Loss Statement)
  Calculate total revenue and subtract the cost of goods sold (COGS) and other expenses to find your net income.
- Balance Sheet
  List all assets (cash, inventory, equipment), liabilities (loans, payables), and owner’s equity (investment and retained earnings) to show your financial position.
- Cash Flow Statement
  Detail cash from operations, investing, and financing activities. This helps track liquidity and financial health.

Other Financial Statements

You may need additional financial statements depending on the purpose of your report. For example, regulatory filings or internal use might require a statement of changes in equity.

Triple I Consulting provides expert financial reporting services to help ensure your business stays compliant, transparent, and ready for investors.

Add Notes or Explanations

If any unusual transactions or items require clarification, include notes. These might explain accounting methods, depreciation, or major changes in financial position.

Use a Clear and Consistent Format

Use headings, tables, and clear labeling to make your report easy to understand. Consistency helps readers compare reports over time.

Review and Finalize

Double-check figures and ensure that all parts of the report are accurate and aligned. Consider having your report audited by our team, especially if you plan to submit it to regulatory agencies.

Financial Report Example

This simplified financial report for a small Philippine business is meant to help you understand basic reporting. For submissions to government agencies and other institutions, reports should be prepared and audited by a licensed CPA. We can also assist you with auditing your report.

ABC Trading Co.
Financial Report
For the Year Ended December 31, 2024

Income Statement

Description	Amount (PHP)
Total Sales Revenue	1,200,000
Cost of Goods Sold	500,000
Gross Profit	700,000
Operating Expenses	200,000
Income Before Tax	500,000
Income Tax Expense	42,500
Net Income	457,500

Note: This simplified income statement shows how a business earns profit. It starts with sales revenue, subtracts the cost of goods sold to get gross profit, and then deducts operating expenses to arrive at income before tax. Finally, taxes are subtracted to determine the net income.

Balance Sheet

Assets	Amount (PHP)
Cash	250,000
Accounts Receivable	100,000
Inventory	200,000
Equipment (net of depreciation)	300,000
Total Assets	850,000

Liabilities & Owner’s Equity	Amount (PHP)
Liabilities
Bank Loan	200,000
Accounts Payable	50,000
Total Liabilities	250,000

Owner’s Equity
Capital	142,500
Add: Net Income	457,500
Total Owner’s Equity	600,000

Note: This example follows the basic accounting equation: Assets = Liabilities + Owner’s Equity. This equation ensures that the business’s financial position is accurately reflected and balanced.

Cash Flow Statement (Simplified)

Cash Flow Source	Amount (PHP)
Net Income	457,500
Less: Equipment Purchase	-150,000
Less: Loan Repayment / Owner Draw	-57,500
Net Increase in Cash	250,000

Note: This simplified cash flow statement shows how the business’s cash position changed during the period. It starts with net income from the income statement and deducts cash used for equipment purchases, loan repayments, or owners’ withdrawals.

Keep in mind that this is a simplified financial report. A complete report should always be prepared and audited by a licensed CPA. We’d be happy to assist you if you need help creating or auditing a financial report.

Summary

Financial reports are essential tools that help Philippine businesses monitor performance, make informed decisions, and comply with local regulations. By learning how to write a financial report, you can better track your company’s growth and prepare for audits, tax filings, or investor presentations. Remember that all reports submitted to government agencies and other institutions should be prepared by a licensed CPA and audited.

Do You Need Help Preparing or Auditing a Financial Report? Our Experts are Ready to Assist You.

Preparing a financial report can be complex and time-consuming. Every step demands careful attention, from collecting accurate data to ensuring compliance with accounting standards and government regulations. Even minor errors can result in poor business decisions or costly penalties from regulatory agencies.

That’s where Triple i Consulting comes in. We’re among the best accounting outsourcing companies in the Philippines, offering bookkeeping, payroll, auditing, tax consultation, and other accounting services. So, let our experienced accountants and lawyers provide comprehensive support for your business, so you don’t have to stress over the paperwork.