Finance

Accounting

Overview

Daily cash tracking, revenue by spoke, expenses by category, bank reconciliation. Simple system — cash book, daily reconciliation, monthly summary. No complex software until scale demands it. Every spoke reports its own income and costs; this page consolidates.

SOPs

• Daily: cash count, receipts matched, sales log completed per spoke
• Weekly: bank deposit, petty cash reconciliation, expense receipts filed
• Monthly: income vs expense summary, spoke-level P&L, bank statement reconciliation
• Quarterly: financial review, budget vs actual, adjustment planning
• Annual: full accounts, tax preparation, strategy review

Revenue Streams — Updated March 2026

Yr1 Target Tie-In

• Corridor population: 350,000–500,000
• Zero organised local competition
• 5% capture Yr1 = ₱50–55M revenue (realistic base case)
• 30% long-term target = scale implication (add when satellites live)

Pending Revenue Updates

• Add satellite container revenue tracking (each as sub-spoke with EOD)
• Circuit commercial as separate line from hub retail
• Model 1 & Model 2 revenue split (direct vs contract growing)
• Feeds wholesale margin confirm (first month data)
• Yr1 ₱50–55M at 5% capture — tie to ground-floor revenue engine first

Expense Categories

• Direct labour / COGS (wages tied to product — butcher, baker, driver, poultry hand)
• Indirect labour / OpEx (management, admin, security, general farm hands)
• Feed & livestock inputs
• Seeds, seedlings, soil amendments
• Fuel & transport
• Utilities (power, water, communications)
• Maintenance & repairs
• Construction (CAPEX — tracked separately)
• Insurance premiums
• Permits, licences, compliance
• Professional services (accountant, legal)

Internal Transfer Pricing

All internal transfers between spokes are at cost price. External sales at market margin. This prevents cross-subsidy confusion and makes each spoke individually accountable.

Live Spreadsheets

Sheet	Purpose	Link
Cash & Bank Master	Daily cash reconciliation across all spokes — bank deposits, variance	Open Cash & Bank Master →
Monthly P&L	Revenue vs costs per spoke, monthly rollup	Open Monthly P&L →
Transaction History	Full audit trail — filters, pagination, spoke/grade breakdown, CSV export	Open Transaction History →
Night Audit	Daily reconciliation — float, cash, GCash match, EFT match, banking	Open Night Audit →
GCash Agent	Bills payment centre — cash-in/out, remittance, e-load, agent float recon	Open GCash Agent →

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Farm Gate POS Setup & Protocol

Day 1 system for all farm gate sales. No exceptions, no workarounds.

Core Setup

• Loyverse POS from day 1 — all sales invoiced to registered entity (Aileen Mulkerrins)
• GCash QR per spoke — business account. One QR at hub gate, one per satellite, one per circuit truck
• No cash to drivers/handlers — GCash or bank transfer only. Flag any attempt immediately
• Item codes: DEPT-CAT-SEQ — every product coded by department, category, sequence number
• Stock type — raw agricultural produce = VAT-exempt; processed/butchered/cooked = 12% VAT

Item Code Format — DEPT-CAT-SEQ

Code	Item	Spoke	Price (₱)	Tax
FARM-VEG-001	Kangkong bunch	Market	20	EXEMPT
FARM-VEG-002	Sitaw bundle	Market	25	EXEMPT
FARM-VEG-003	Pechay bunch	Market	20	EXEMPT
FARM-EGG-001	Fresh eggs (dozen)	Poultry	80	EXEMPT
FARM-EGG-002	Fresh eggs (tray of 30)	Poultry	180	EXEMPT
LIV-GOAT-001	Goat meat per kg	Livestock	380	EXEMPT
LIV-BEEF-001	Beef cuts per kg	Butcher	450	VAT 12%
PAN-BREAD-001	Pan de sal (5 pcs)	Panaderia	10	VAT 12%
PAN-BREAD-002	Ensaymada	Panaderia	15	VAT 12%
PAN-PIZZA-001	Pizza slice	Panaderia	100	VAT 12%
FEED-MILL-001	Milled feed 50kg bag	Feeds	1,200	EXEMPT
FEED-GRAIN-001	Corn whole 50kg	Feeds	950	EXEMPT
NUR-SEED-001	Kangkong seedlings (tray)	Nursery	35	EXEMPT
MAR-FISH-001	Fresh tilapia per kg	Marine	160	EXEMPT
MAR-FISH-002	Dried dilis per pack	Marine	45	VAT 12%
CAFE-BEV-001	Brewed coffee	Cafe	45	VAT 12%

GCash Integration

• Business GCash QR printed & laminated at every sale point (hub gate, satellites, trucks)
• Customer scans QR → pays → driver/teller confirms payment screenshot before release
• Daily reconcile in Loyverse — match GCash transaction IDs to POS entries
• GCash balance transferred to business bank account weekly
• Credit option: 15–20% bonus value for farmers selling at gate — tracked via loyalty card in Loyverse

Daily Flow — Farm Gate

1. Open POS terminal, verify float (if cash accepted at hub counter only)
2. Scan/enter items as farmer delivers or customer buys
3. Customer pays GCash (scan QR, confirm screenshot) or credit (loyalty card swipe)
4. Log sale in EOD spreadsheet + physical logbook
5. End of day: count physical stock remaining per spoke
6. Variance check — POS total vs physical count vs GCash receipts
7. Photo logbook page + sign-off → submit photo to owner/Aileen

EOD Checklist — Farm Gate Specific

#	Check	Who
1	Count physical stock: veg, eggs, meat, bread, feeds remaining	Teller + Spoke Lead
2	Record sales breakdown: GCash / Credit / Cash (hub only)	Teller
3	Record expenses: petty cash (fuel, packaging, ice)	Teller
4	Note waste / shortages / damage with reason	Spoke Lead
5	Variance explanation if POS ≠ physical	Teller + Spoke Lead
6	Sign logbook page (pen only, no erasures)	Both
7	Photo of signed page → submit to owner	Teller
8	GCash balance screenshot → submit to owner	Teller

Satellite Container EOD

Each 20ft reefer deployed to a barangay/corridor point operates as a sub-spoke with its own EOD report. Same checklist as above, plus:

• Temperature log photo (reefer temp logger display)
• Stock received from hub truck — carbon copy signed by driver + satellite operator
• Returns/unsold logged separately — goes back on next hub run
• Revenue tracked as separate line in Monthly P&L (not merged with hub walk-in)

Records

Cash book, bank statements, receipts filed by month, spoke P&L reports, annual accounts, EOD logbook photos (digital archive), GCash reconciliation reports.

Tax

Overview

Philippine tax compliance for agricultural enterprise. BIR registration, income tax, percentage tax or VAT (depending on revenue threshold), withholding tax on employees. Potential future: separate tax entity for feed business division.

Key Obligations

Obligation	Frequency	Notes
BIR Registration	Once (+ annual renewal)	Business registration, TIN, books of accounts
Income Tax	Quarterly + Annual	Quarterly returns (1701Q), annual return (1701)
Percentage Tax / VAT	Quarterly	3% percentage tax if below VAT threshold; 12% VAT above
Withholding Tax	Monthly	On employee compensation
SSS / PhilHealth / Pag-IBIG	Monthly	Mandatory employee contributions
Barangay / Municipal permits	Annual	Business permit, sanitary permit, fire clearance

SOPs

• All official receipts / invoices issued using BIR-registered receipts
• Books of accounts maintained: journal, ledger, cash receipts, cash disbursements
• Quarterly returns filed on time — no late filing
• Employee payroll records complete with deductions documented
• Retain all records for 10 years (BIR requirement)

Agricultural Exemptions & BMBE

Some agricultural income may qualify for tax exemptions or incentives under Philippine law. Consult accountant for: agricultural income exemptions, CARP-related benefits.

Records

BIR certificates, filed returns (copies), official receipt booklets, books of accounts, employee contribution records.

Costings

Overview

Master costing for the entire operation. CAPEX (construction, infrastructure, equipment) tracked separately from OPEX (daily running costs). Each spoke must know its cost base. See Costing 2026 spreadsheet for the full breakdown.

Costing by Spoke

Spoke	Key Cost Drivers
Livestock	Feed, fencing, vet, herder wages
Poultry	Chicks, feed, netting, Raff/Grace wages
Feed & Supply	Bulk grain purchase, equipment, Napier lease
Farm Shop	Container build (CAPEX), staff, utilities
Butcher	Equipment, cold chain power, staff
Panaderia	Flour/ingredients, oven fuel, staff
Cafe	Kitchen fit-out (CAPEX), ingredients, staff
Deliveries	Vehicle, fuel, driver wages, ice/packaging
Regen Gardening	Seeds, tools, irrigation, compost inputs
Marine & Seafood	Fish purchase, ice, cold chain
Nursery	Seeds, trays, shade house, potting media

Vendor Account Sheets

One Google Sheet per major vendor — tracks orders, deliveries, payments, and running balance.

#	Vendor	Purpose	Link
1	Vendor 1 — [Name TBC]	Orders, deliveries, payments, balance	Pending — vendor not yet assigned
2	Vendor 2 — [Name TBC]	Orders, deliveries, payments, balance	Pending — vendor not yet assigned
3	Vendor 3 — [Name TBC]	Orders, deliveries, payments, balance	Pending — vendor not yet assigned
4	Vendor 4 — [Name TBC]	Orders, deliveries, payments, balance	Pending — vendor not yet assigned
5	Vendor 5 — [Name TBC]	Orders, deliveries, payments, balance	Pending — vendor not yet assigned

Vendor Kubo Costing

Detailed build costing for the vendor kubo (stall/booth) structures. See Vendor Kubo Costing spreadsheet.

Financial Strategy

Long-term financial plan covering startup capital, phased investment, revenue projections, and break-even targets. See Financial Strategy document.

SOPs

• Costing spreadsheet updated monthly — actual vs projected
• Every purchase over ₱5,000 requires quote comparison
• CAPEX approvals: owner sign-off required before spend
• No untracked spending — every peso accounted for

Records

Master costing spreadsheet, supplier quotes, purchase orders, CAPEX approval log, financial strategy documents.

CAPEX — Construction

Overview

All capital builds — container conversions, structures, fencing, land improvements, infrastructure. One-off spends that create lasting assets. Tracked separately from daily running costs so you can see true build cost vs operational cost.

Stage 1 Build — Live · Work · Start (REAL figures — ₱4,963,997 total)

Item	Description	Cost (PHP)	Cost (AUD)	Status
4× Reefer Hi-Cube Containers + Refrigeration	Cold storage operational day 1 — insulated shells + remote refrigeration units	₱860,000	~$20,476	Stage 1
Reduced Slab (~140m²)	Rampart/reefer footprint only. Starter bars left for Stage 2 extension	₱245,000	~$5,833	Stage 1
Earth Rampart + Access Ramp	1:10 grade, 29m×4m. Insulation + ramp + 90,000L water storage + trellis garden	₱466,400	~$11,105	Stage 1
Water System	3×30,000L gravity tanks on rampart, wells, pumps, filtration — full system	₱418,000	~$9,952	Stage 1
Electrical & Power	Solar + batteries + diesel generator backup. Full system, above flood line	₱627,000	~$14,929	Stage 1
Drainage	Perimeter channels, catch pits — full from day 1	₱107,000	~$2,548	Stage 1
Manager's Residence + Small Kitchen	117m² on poles. 3 bed/2 bath. Company asset — depreciable 20 years	₱1,470,597	~$35,014	Stage 1
2× 40ft Dry Containers — Logistics Hub	Temp operations hub. Redeploys to farm machinery/stables at Stage 2	₱160,000	~$3,810	Stage 1
2× 40ft Dry Containers — Fly Camp	Worker/crew accommodation. Redeploys to farm at Stage 2	₱220,000	~$5,238	Stage 1
Hoop House 20m × 10m	Operational cover. Redeploys to farm storage at Stage 2	₱185,000	~$4,405	Stage 1
Perimeter Fencing + Security	Full hub boundary — site secured before materials arrive	₱120,000	~$2,857	Stage 1
Access Track — Limestone	All-weather vehicle access. Becomes Stage 2 driveway sub-base	₱85,000	~$2,024	Stage 1
STAGE 1 TOTAL		₱4,963,997	~$118,190

Stage 1 CAPEX Breakdown (Spoke-Level) — March 2026 Real-Site Anchor

Total Stage 1 Anchor: ₱4,963,997 (real site figure from /ops/construction — pending full contractor package post-title)

Spoke / Item	Description	Estimated Range (PHP)	Priority / Notes
Feeds & Supply	Loading area, milling foundation, tractor/forklift pad	₱300,000 – 600,000	HIGH — core revenue engine day 1
Cool Rooms / Chillers	Insulated install + refrigeration (critical for cold chain)	₱800,000 – 1,800,000	CRITICAL — no cold chain = no satellite viability
Container Logistics (4× 20ft Reefers)	Reefer mods, genset/power, redeploy prep	₱860,000	HIGH — sub-spoke EOD tracking
Manager's Residence Shell	Basic build (depreciation 20yr, FBT model)	₱1,470,000	Medium — company asset, tax-deduct running costs
Panaderia Container Conversion	Deck oven space, wood dome base, fit-out shell	₱500,000 – 900,000	HIGH — pending wood dome 3 mason quotes
Nursery / Soil Prep	Terracing starter, propagation trays, irrigation	₱200,000 – 400,000	Medium — bridge to regen gardening
Basic Slab / Services	Hub slab portion, power/water hookups	₱833,997 (remainder)	CRITICAL — no slab = no pour
Sub-Total Spoke Breakdown		₱4,963,997	Matches real site figure anchor

Stage 2 / 3 Additional Build (estimates — NOT in Stage 1, no crossover)

Item	Description	Cost (PHP)	Cost (AUD)	Status
2× Additional Reefer Containers (upper floor spine)	Top floor spine — 20ft + 40ft rear bar. Full build needs 6 total	₱370,000	~$8,810	Stage 2
Slab Extension (~137m² remaining)	Completes full ~277m² ground floor footprint	₱220,954	~$5,261	Stage 2
Driveway + Car Park	6×28m sealed driveway + 22-space limestone car park	₱503,600	~$11,990	Stage 2
Building Structure — CHB + Light Steel	Ground floor CHB 150mm walls + upper floor light steel frame	₱1,684,308	~$40,103	Stage 2
Roof — Torch-On Membrane + Nipa Overlay	5-layer system. Full hub roof	₱1,693,528	~$40,322	Stage 2
Stairs + Dumbwaiter (Food Lift)	External stairs + commercial food lift (butcher → kitchen)	₱250,000	~$5,952	Stage 2
Cold Chain — 4 Rooms + Remote Refrigeration	2× cool room (2–4°C) + 2× freezer (−18°C) buried in rampart	₱685,000	~$16,310	Stage 2
Fire + Security + Drainage (full)	Hydrants, CCTV, kitchen suppression, perimeter expansion	₱438,000	~$10,429	Stage 2
Glazing + UPVC Doors + Bifolds + Railings	All UPVC + toughened glass. Bifolds on wings, French doors front	₱1,544,000	~$36,762	Stage 3
Kitchen Fit-Out (Production + Show Kitchen)	Production kitchen + show kitchen, charcoal char grill, display cabinets	₱947,760	~$22,566	Stage 3
Restaurant Fit-Out (~220m² dining + balcony)	Tiled floors, bar, 80 covers, aquarium herb centrepiece	₱1,364,050	~$32,477	Stage 3
Butcher Fit-Out	Fully tiled, all equipment, display counters, hygiene fit-out	₱554,300	~$13,198	Stage 3
STAGE 2/3 TOTAL		₱10,255,500	~$244,179
FULL BUILD TOTAL (all stages)		₱13,369,497	~$318,321

SOPs

• All builds require written scope, budget, and owner sign-off before starting
• Materials purchased with receipts — no undocumented spending
• Progress photos taken weekly minimum
• Final cost vs budget comparison documented on completion
• Asset added to asset register with build cost and date

Records

Build budgets, material receipts, contractor agreements, progress photos, completion reports, asset register entries.

CAPEX — Equipment

Overview

Major equipment and vehicle purchases. Items with a useful life beyond 12 months and cost above ₱10,000. Tracked as capital assets, not daily expenses.

Equipment Register

Category	Item	Cost (PHP)	Cost (AUD)	Notes
Delivery Fleet	2–3 Reefer Trucks (cold chain delivery vehicles)	₱4,000,000	~$95,238	ESTIMATE. Isuzu/Mitsubishi Naga. Delivery vehicles only — not on-site storage
Satellite Stores	20ft Reefer Containers (field deployment, 2–3 units)	₱600,000	~$14,286	ESTIMATE. Deployed to barangays/corridor points for cold storage
Light Commercial Fleet	Utes, vans, PUV (after Isuzu NPS first purchase)	₱2,000,000	~$47,619	ESTIMATE. Gencars Naga, Pili. 4×4 policy on light commercial
Panaderia	Deck ovens, mixers, proofing trays	₱800,000	~$19,048	ESTIMATE. 3 mason quotes for wood-fired dome — separate to oven fit-out
Feeds & Supply	Feed mill/cracker, platform scales, bulk bins, loading ramp	₱600,000	~$14,286	ESTIMATE. Jim to spec on arrival
Market & Fish	Display counters, ice boxes, wet section, scales	₱400,000	~$9,524	ESTIMATE
Cool Rooms (on-site)	2–3 insulated fixed cold rooms + temp loggers	₱1,800,000	~$42,857	ESTIMATE. CRITICAL — protects all perishables at hub
Office / GCash / POS	Loyverse POS tablets + printer, network, GCash QR, loyalty cards	₱150,000	~$3,571	ESTIMATE. Cashless from day 1
Nursery	Raised beds, seedling trays, shade nets, tools	₱1,000,000	~$23,810	ESTIMATE. Horticulturist to spec on arrival
Playground + Court	Undercover roof, half-court, playground, toddler area, lighting	₱2,850,000	~$67,857	ESTIMATE. Community space — see full breakdown in construction
TOTAL EQUIPMENT		₱14,200,000	~$338,095	All estimates — replace with real quotes

SOPs

• Equipment over ₱10,000 requires owner approval before purchase
• All equipment tagged with asset number, date, cost
• Maintenance schedule created for each piece of equipment
• Replacement planning: expected lifespan noted, budget for replacement
• Equipment disposal or sale documented with reason

Records

Asset register (item, date, cost, location, condition), purchase receipts, warranty documents, maintenance logs.

OPEX — Maintenance

Overview

Ongoing repair and upkeep costs — the recurring spending that keeps everything running. Fencing repairs, equipment servicing, plumbing, electrical, structure maintenance. Not new builds (CAPEX) — just keeping what you have in working order.

Maintenance Cost Categories

Category	Typical Items	Frequency
Fencing	Wire replacement, post repair, gate hinges	Monthly
Equipment	Oil, belts, blades, filter replacement	Per schedule
Vehicles	Fuel, tyres, oil change, registration	Ongoing
Plumbing	Pipe repair, tap replacement, tank cleaning	As needed
Electrical	Wiring repair, bulb replacement, breaker issues	As needed
Structures	Roof patches, door repair, paint, rust treatment	Quarterly
Cold Chain	Compressor service, gasket replacement, thermostat calibration	Quarterly

SOPs

• Monthly maintenance walk-through — all structures, equipment, fencing inspected
• Repair requests logged with date, item, urgency, and cost estimate
• Emergency repairs actioned immediately — documented within 24 hours
• Preventive maintenance calendar followed — don't wait for breakdown
• All maintenance receipts filed monthly

Records

Maintenance request log, repair receipts, equipment service records, monthly walk-through reports.

OPEX — Operations

Overview

Daily and monthly running costs that keep the farm operating. Everything that isn't a capital build or a one-off equipment purchase. This is the money that flows out every day — feed, wages, fuel, utilities, consumables. The goal: know your burn rate per spoke, per week.

OPEX by Category

Category	Includes	Tracking
Direct Labour (COGS)	Wages tied to product/service — butcher, baker, driver, poultry hand	Payroll tab → spoke COGS
Indirect Labour (OpEx)	Management, admin, security, general farm hands	Payroll tab → general OpEx
Feed & Inputs	Animal feed, seeds, fertiliser, soil amendments	Feed & Garden spoke logs
Fuel & Transport	Petrol, diesel, LPG, delivery costs	Delivery spoke log
Utilities	Electricity, water, internet, phone load	Monthly bills
Consumables	Packaging, ice, cleaning supplies, office supplies	Spoke logs
Raw Materials	Flour, sugar, cooking oil, fish purchase, bulk goods	Spoke purchase logs
Professional Fees	Accountant, vet, consultant, legal	This page
Rent & Lease	Napier land lease, equipment hire	Contract register

Monthly OPEX Target by Spoke

Spoke	Key Monthly Costs	Target (₱/month)	Target (AUD/month)
Livestock	Feed, herder wages, vet	₱35,000	~$833
Poultry	Feed, chick replacement, Raff/Grace wages	₱30,000	~$714
Feed & Supply	Bulk grain, Napier lease, milling costs, fuel	₱45,000	~$1,071
Market / Farm Shop	Staff, utilities, packaging, stock buy-in	₱75,000	~$1,786
Butcher	Power (cold chain), staff, packaging, carcass buy-in	₱45,000	~$1,071
Panaderia	Flour, ingredients, oven fuel, staff	₱60,000	~$1,429
Cafe (when open)	Ingredients, staff, utilities	₱50,000	~$1,190
Deliveries	Fuel, driver wages, ice, packaging, maintenance	₱60,000	~$1,429
Garden & Nursery	Seeds, tools, irrigation, compost, horticulturist wage	₱30,000	~$714
Marine & Seafood	Fish purchase, ice, cold chain power	₱40,000	~$952
Slow Food & Training	Trainer wages, ingredients, materials	₱20,000	~$476
TOTAL MONTHLY OPEX		₱490,000	~$11,667
TOTAL ANNUAL OPEX		₱5,880,000	~$140,000

SOPs

• Every operational expense requires a receipt — no exceptions
• Petty cash fund per spoke — replenished weekly with receipts submitted
• Monthly OPEX review: actual vs target, spoke by spoke
• Any single expense over ₱5,000 requires owner pre-approval
• Utility bills reviewed monthly — investigate any spikes

Records

Daily expense receipts, petty cash logs, utility bills, spoke-level OPEX summaries, monthly review notes.

Insurance

Overview

Risk protection for the farm, staff, livestock, and infrastructure. Research phase — identifying the right policies for a diversified agricultural operation in Bicol (typhoon belt). See Insurance Research document for full analysis.

Coverage Areas

Type	Covers	Status
Property / Fire	Containers, equipment, structures, stock	Research
Livestock	Cattle, goats, poultry — death, disease, theft	Research
Crop / Weather	Typhoon, flood, drought damage to crops	Research
Public Liability	Customer/visitor injury, property damage	Research
Workers' Compensation	Employee injury on-site	Research
Vehicle	Delivery vehicles, farm equipment	Research
Business Interruption	Loss of income after insured event	Future

PCIC (Philippine Crop Insurance Corporation)

Government crop and livestock insurance program. Low premiums, government-subsidised. Investigate eligibility for: rice/corn crop insurance, livestock insurance (cattle, goats, poultry), fisheries insurance. Registration through local DA office.

SOPs

• Annual insurance review — coverage vs actual asset values
• Incident documentation: photos, reports, witness statements — within 24 hours
• Claims filed promptly with supporting documentation
• Policy documents stored securely (physical + digital copies)
• Premium payment schedule tracked — no lapses

Records

Policy documents, premium receipts, claims history, asset register (for valuation), incident reports.

Legal

Overview

Legal matters covering land, contracts, employment, liability, and dispute resolution. Philippine agricultural law, local government requirements, and business structure compliance. Get a lawyer before you need one — not after.

Legal Areas

Area	Covers	Status
Land & Property	Title verification, lease agreements, right of way, boundary disputes, CARP compliance	Review needed
Business Registration	DTI/SEC registration, business name, entity structure (sole prop vs partnership vs corp)	Active
Employment Law	Labour code compliance, contracts, termination, minimum wage, benefits	Setup
Contracts & Agreements	Vendor contracts, supplier terms, lease agreements, partnership MOAs	Ongoing
Food Safety / FDA	FDA-LTO for processed food (bread, value-add meats), labelling requirements	Research
Environmental	DENR compliance, water use permits, waste management	Research
Liability & Disputes	Customer complaints, neighbour disputes, damage claims, debt collection	Prepare

Key Documents to Secure

• Land title (TCT) or lease agreement — certified copies
• Business registration certificate (DTI or SEC)
• BIR Certificate of Registration (COR)
• Employment contracts for all staff — signed copies on file
• Vendor/supplier agreements — written, not verbal
• FDA-LTO application for processed food products
• Barangay clearance and municipal business permit

SOPs

• No verbal-only agreements — everything in writing, signed by both parties
• All contracts reviewed before signing — by lawyer if value exceeds ₱50,000
• Employee contracts issued before first day of work
• Legal documents stored in fireproof safe + digital backup
• Annual legal review: contracts, licences, compliance status
• Dispute resolution: attempt mediation (barangay level) before legal action

Records

Land documents, business registration, contracts, employment files, permits, correspondence with lawyer, dispute records.

Banking & Credit

Overview

Bank accounts, digital payments, credit facilities, and cash management. Multiple payment channels needed: cash (primary), GCash (growing), bank transfer (bulk orders). Separate business accounts from personal — clean books from day one.

Accounts

Account	Purpose	Status
Business Savings	Main operating account — deposits, supplier payments, payroll	To open
Business Current	Cheque account for larger payments, supplier settlements	Future
GCash Business	Digital payments from customers, online orders	Setup
Maya / PayMaya	Alternative digital payment channel	Research
Emergency Fund	Separate savings — 3 months OPEX reserve target	Building

Credit & Lending

Type	Purpose	Notes
Landbank / DBP Agri Loan	Government agricultural lending — lower interest	Investigate eligibility
Cooperative Credit	Local cooperative lending for members	If membership active
Supplier Credit	Trade terms with major vendors (net 15/30)	Negotiate as volume grows
Microfinance	Short-term working capital if needed	Last resort — high interest

SOPs

• Business and personal accounts strictly separated — no mixing
• All sales deposited within 48 hours — no cash sitting longer
• Bank reconciliation weekly — statements matched to cash book
• GCash balance checked daily — transferred to bank weekly
• No borrowing without written plan for repayment + owner approval
• Emergency fund: minimum ₱50,000 maintained at all times

Records

Bank statements, deposit slips, GCash transaction history, loan agreements, credit terms with suppliers.

Payroll

Overview

Wages, benefits, deductions, and compliance for all farm staff. Philippine labour law applies — minimum wage, mandatory contributions, 13th month pay. Simple payroll system: attendance tracked, wages calculated biweekly or monthly, deductions applied, net pay disbursed.

Wages as OpEx — The Split That Matters

All wages are operating expenditure (OpEx) — they hit the P&L as expenses and reduce taxable income. But where they sit on the P&L matters for understanding which spokes are actually profitable.

Type	What It Means	Where It Sits	Examples
Direct Wages (COGS)	Staff whose work is tied directly to a product or service sold	Cost of Goods Sold — above the gross profit line	Butcher processing meat, poultry hand collecting eggs, baker making bread, cafe cook, delivery driver
Indirect Wages (OpEx)	Staff not tied to a specific saleable output	Operating Expenses — below the gross profit line	Admin, management, security, general farm labour, maintenance crew

Direct Wages by Spoke (COGS)

Spoke	Direct Labour Roles	Monthly Est. (₱)
Butcher	1 butcher + 1 apprentice	₱40,000 – 70,000
Poultry	Paing (Raff) + 2 local hands + Grace (eggs)	₱60,000 – 90,000
Livestock	1 herder (₱15–20k) + vet (₱500–800/head)	₱40,000 – 80,000
Panaderia	2 bakers + 3–4 counter/prep/seller	₱90,000 – 168,000
Cafe	Cook, barista, server — Month 9+ when Alejandro's opens	₱50,000 – 80,000
Market / Farm Shop	2–3 counter + 1 buyer/collector + 1 fish buyer/driver	₱60,000 – 125,000
Deliveries	2 drivers/truck × 2–3 trucks + fuel ₱25–35k/mo	₱72,000 – 150,000
Feed & Supply	Jim (boss) + 2–3 loaders/drivers/teller — margin 15–25%	₱70,000 – 110,000
Marine & Seafood	Fish handler, cold chain staff (shared with market)	₱20,000 – 40,000
Garden & Nursery	1 horticulturist + 2–3 hands	₱55,000 – 110,000

Indirect Wages (OpEx)

Role	Covers	Monthly Est. (₱)
Farm Manager / Supervisor	Oversight across spokes, not tied to one product	₱25,000 – 40,000
Admin / Bookkeeper (Grace + Aileen)	Accounts, filing, payroll, GCash, POS, credit tracking	₱80,000 – 200,000
Security / Caretaker	Night watch, property security	₱12,000 – 18,000
General Farm Labour	Clearing, fencing, odd jobs not tied to sales	₱30,000 – 50,000
Maintenance	Repairs, upkeep across all structures & cold chain	₱20,000 – 30,000

BMBE Registration — Tax Advantage

Payroll Components

Component	Details	Frequency
Basic Wage	Daily rate × days worked, or monthly salary	Biweekly / Monthly
Overtime	125% of hourly rate for hours beyond 8/day	Per payroll
Holiday Pay	Regular holiday: 200%, special holiday: 130%	As applicable
13th Month Pay	1/12 of total basic salary earned in year	December (latest)
SSS Contribution	Employee + employer share (table-based)	Monthly remittance
PhilHealth	Employee + employer share	Monthly remittance
Pag-IBIG	Employee + employer share (₱100 each if basic)	Monthly remittance
Withholding Tax	Based on compensation level — tax table	Monthly remittance

SOPs

• Attendance logged daily — late arrivals, absences, overtime noted
• Payroll calculated by 12th and 27th of each month (or biweekly schedule)
• Pay slips issued to every employee — showing gross, deductions, net
• Government contributions remitted by 10th of following month
• 13th month pay computed and paid by December 24
• Cash wages: employee signs receipt. Bank transfer: keep transaction record
• Direct wages allocated to spoke COGS — indirect wages to general OpEx
• Monthly payroll summary split by spoke for P&L accuracy

Records

Attendance records, payroll register (split by spoke), pay slips (signed), SSS/PhilHealth/Pag-IBIG remittance receipts, BIR withholding tax returns, BMBE certificate (if applicable).

Permits & Licences

Overview

All government permits, licences, and clearances required to operate legally. Philippine LGU, national agency, and industry-specific requirements. Renewal dates tracked — expired permits mean fines or closure. One person responsible for tracking all renewals.

Permit Register

Permit / Licence	Issuing Body	Frequency	Status
Business Permit	Municipal / City Hall	Annual (January)	TBC
Barangay Clearance	Barangay Hall	Annual	TBC
BIR Registration (COR)	Bureau of Internal Revenue	Once + annual update	TBC
Sanitary Permit	Municipal Health Office	Annual	TBC
Fire Safety Clearance	Bureau of Fire Protection	Annual	TBC
FDA-LTO (Food)	Food & Drug Administration	Per product line	Research
DA Registration	Dept of Agriculture	For feed sales, livestock movement	Research
DENR Clearance	Dept of Environment	If near waterway / forest	Check
DTI Business Name	Dept of Trade & Industry	Every 5 years	TBC
Zoning Clearance	Municipal Planning Office	Once (land use)	TBC
Vehicle Registration	LTO	Annual	TBC
Driver's Licence	LTO	Every 5 years	TBC

Renewal Calendar

Month	Renewals Due
January	Business permit, barangay clearance, sanitary permit, fire clearance
April	BIR annual renewal (books of accounts stamp)
As needed	Vehicle registration (by anniversary), FDA-LTO (by product), DTI (every 5 years)

SOPs

• Permit renewal process started 30 days before expiry — no last-minute scrambles
• All permits displayed where required by law (BIR COR visible, business permit posted)
• Copies of all permits: original in office safe, photocopy in file, digital scan in cloud
• If inspector visits: cooperate fully, document what was requested, report to owner same day
• New product lines or activities: check if additional permit needed before launching

Records

Permit originals (safe), copies in file by type, renewal tracker spreadsheet, inspection reports, compliance correspondence.