How to Submit Audited Financial Statements (AFS) in the Philippines (Without the Headache!)

Filing your Audited Financial Statements (AFS) in the Philippines might sound like a big, complicated chore—but it doesn’t have to be. Whether you’re a small business owner, freelancer, or handling your company’s compliance, understanding the process can make life a lot easier. Here's a no-jargon, straightforward guide to help you out.

So, what exactly is an AFS?
An Audited Financial Statement is a formal record of a company’s financial activities. It’s reviewed by an independent Certified Public Accountant (CPA) to make sure everything’s in order. Basically, it gives the Bureau of Internal Revenue (BIR) and the Securities and Exchange Commission (SEC) a snapshot of your business’s health and financial performance.

If your company’s gross sales or receipts exceed PHP 3 million in a year, submitting an AFS is a requirement. Even if you fall below that threshold, it’s still a good habit to practice clean and organized financial reporting.

Step-by-Step Guide to Submitting Your AFS:
1. Prepare the Documents
Start by organizing your financial reports:

Statement of Financial Position (Balance Sheet)

Statement of Comprehensive Income (Profit & Loss Statement)

Statement of Cash Flows

Statement of Changes in Equity

Notes to the Financial Statements

Your reports need to be audited and signed by an accredited CPA, so make sure you work with someone who’s qualified and familiar with your industry.

2. Get Your AFS Signed and Notarized
Once the audit is done, your CPA will sign off on the financials, and you’ll also need to get them notarized. Don’t skip this part—unsigned or unnotarized documents won’t be accepted.

3. Submit to the BIR
BIR first, always. You’ll need to file your AFS along with your Income Tax Return (ITR), using BIR Form 1701 (for individuals) or 1702 (for corporations/partnerships). Attach the AFS to your ITR and submit it via the Electronic Filing and Payment System (eFPS) or eBIRForms, whichever is applicable to you.

4. Submit to the SEC
Once you’re done with the BIR, it’s time for the SEC. The SEC requires corporations and partnerships to submit AFS every year, within 120 calendar days from the end of the fiscal year.

The easiest way to do this? SEC’s Electronic Filing and Submission Tool (eFAST). You’ll need to register your company account, upload your signed AFS in PDF format, and follow the submission prompts.

Note: If you're submitting hard copies, make sure to check the SEC schedule (based on your company's last digit of registration number) and bring a receiving copy.

Quick Tips to Keep in Mind
Don’t wait till the last minute. Accountants get crazy busy near deadlines.

Double check your figures and signatures. Missing pages or unsigned sheets can lead to rejections.

Stay updated. Rules and tools (like eFAST) may change, so always check the official BIR and SEC websites.

Final Thoughts
Submitting your AFS isn’t exactly fun, but it’s totally doable. With the right accountant and a good grasp of the process, you can handle it like a pro. Plus, staying compliant gives your business credibility—and helps you sleep better at night.

So go ahead, gather those numbers, talk to your CPA, and get it done!