A COMPANY announces another profitable year. Sales are growing, earnings are improving, and management is optimistic about the future. On paper, everything seems to be going well. But behind those encouraging numbers is something that deserves closer attention: The company is generating less cash from its operations even as its reported profits continue to rise. How can that happen? The answer lies in a distinction often overlooked in business: Earning a profit is not the

MANY people dream of writing a book. Teachers want to share what they have learned in the classroom. Professionals hope to pass on their experience. Others believe they have something valuable to say. Yet the dream often remains an idea. They have the knowledge, perhaps even an outline, but never get around to writing the first chapter. The reasons are familiar: not enough time, doubts about their writing skills, or the thought that someone else has already covered the su

“The important thing is not to stop questioning. Curiosity has its own reason for existing.” – Albert Einstein KEEPING up with artificial intelligence (AI) can feel like a second job. Just as I begin to understand one tool, another arrives with unfamiliar terminology and fresh promises. Finding time to make sense of it all alongside accounting work is a challenge. But the reading becomes worthwhile when a development addresses a familiar frustration: explaining the same p

THERE is a difference between documentation that proves a requirement was met and one that helps someone understand the business. In transfer pricing, that difference can become significant when the tax authority starts asking questions. That gap matters more this year. The Bureau of Internal Revenue opened 2026 with Revenue Memorandum Order 1-2026, which moved audit selection toward a system-assisted, risk-based approach. Several of its indicators point straight at related

THE weakening of the Philippine peso against the US dollar has become a concern for many Filipinos. When the peso loses value, the prices of imported goods, fuel and other products become more expensive. For businesses, however, the effects go beyond higher operating costs. A weaker peso can reduce reported profits, increase the peso value of foreign currency debts, and affect the financial statements of companies dealing with overseas suppliers and customers. What make

RECENT reports within Philippine business and professional circles have described incidents in which audited financial statements (AFS) were circulated using the name, signature and accreditation details of legitimate certified public accountants (CPA), even though the CPA concerned did not accept the engagement, perform the audit, or sign the report. This is not simply an unlicensed person pretending to be a CPA. It is more dangerous. The CPA may be real. The Professiona