Chart of Accounts Setup for Online Stores in the Philippines

Your chart of accounts (COA) is the backbone of your bookkeeping system. Every transaction in your business gets classified into one of the accounts in this list — and if the list is wrong, your financial reports will be wrong too. For Philippine online sellers on Shopee, Lazada, and TikTok Shop, the standard COA templates built for traditional retail don't quite fit. Marketplace settlements, platform fees, withheld taxes, and coin-based promotions all need their own accounts.

This guide builds a COA from scratch for a Philippine online store, explains why each account exists, and shows how to handle the quirks of selling on local marketplaces.

What Is a Chart of Accounts?

A chart of accounts is a structured list of every financial category your business uses. Think of it as the filing system for your money: every peso that comes in or goes out gets put in a labeled folder. The COA groups those folders into five master categories:

1. Assets — what you own (cash, inventory, receivables)
2. Liabilities — what you owe (loans, unpaid bills, VAT payable)
3. Equity — the owner's net stake in the business
4. Revenue — income from sales and other sources
5. Expenses — costs of running the business

Each account has a number, a name, and a type. The numbering convention used in the Philippines (and in most accounting software) is:

Why Online Stores Need a Custom COA

A sari-sari store can get by with Cash, Inventory, Sales, and Cost of Goods. An online store on Shopee and Lazada has additional complexity:

• Marketplace settlements arrive net of fees. Shopee deposits to your bank account after deducting platform fees, shipping subsidies, and sometimes coins reimbursements. If you record the deposit as your gross sales, you're understating both income and fees.
• Platform fee rates vary by category. Electronics might incur a 2% commission; fashion may be 7%. Tracking these separately helps you understand true profitability per product line.
• Some platforms withhold tax from settlements. TikTok Shop (as of 2025) withholds a percentage for expanded withholding tax and remits it to BIR on the seller's behalf. You need an asset account to track what's been withheld for you.
• Returns and refunds are common. Returns in e-commerce can run 5–15% of orders. These need proper contra-revenue treatment, not just a negative sale.
• Shopee Coins, Lazada vouchers, and TikTok coupons are reimbursed by the platform. These are real income to you, but categorizing them as product sales distorts your average selling price.

Sample Chart of Accounts for a Philippine Online Store

1000s — Assets

2000s — Liabilities

3000s — Equity

4000s — Revenue

This section is where online stores need the most customization.

5000s — Cost of Goods Sold

6000s — Operating Expenses

7000s — Other Income and Expenses

How Marketplace Settlements Work in Your Books

This is where most online sellers get confused. Let's trace an example.

Situation: In January, your Shopee store has the following activity:

• Gross sales: ₱150,000
• Platform commission (6% average): ₱9,000
• Shopee Coins reimbursements: ₱3,000
• Net settlement remitted to your bank: ₱144,000

Incorrect (common mistake):

Bank (1020) ₱144,000
  Sales — Shopee (4010) ₱144,000

This understates your revenue and hides the platform fee.

Correct approach:

Step 1 — Record gross sales and Shopee receivable:
  Shopee Settlement Receivable (1030) ₱153,000
    Product Sales — Shopee (4010)       ₱150,000
    Platform Voucher Reimbursements (4030) ₱3,000

Step 2 — Record platform commission as expense:
  Platform Commission — Shopee (6020) ₱9,000
    Shopee Settlement Receivable (1030) ₱9,000

Step 3 — Record actual bank deposit:
  BDO Checking (1020) ₱144,000
    Shopee Settlement Receivable (1030) ₱144,000

After Step 3, the Shopee Settlement Receivable balance = ₱153,000 − ₱9,000 − ₱144,000 = ₱0. Clean.

Handling Expanded Withholding Tax (EWT) on Settlements

TikTok Shop withholds 1% expanded withholding tax (EWT) from settlements for sellers with gross annual receipts above ₱720,000. This withheld amount is creditable against your income tax.

Journal entry when TikTok remits (net of 1% EWT):

TikTok Shop Settlement Receivable (1032) ₱50,000 gross
  EWT Receivable (1040) ₱500
    Bank (1020) ₱49,500

The ₱500 in EWT Receivable gets offset against your income tax payable when you file your quarterly 1701Q. Request a BIR Form 2307 from TikTok periodically — this is the certificate of creditable withholding tax that you attach to your income tax return.

Setting Up This COA in Akauntants

When you create an Akauntants account, the Philippine default COA is pre-loaded. For online sellers, you'll want to:

1. Go to Settings → Chart of Accounts
2. Add the marketplace-specific revenue accounts (4010–4013, 4030–4032)
3. Add the platform commission expense accounts (6020–6022)
4. Add Settlement Receivable accounts (1030–1032)
5. Enable the EWT Receivable account (1040) if applicable

Once set up, every transaction you record maps to these accounts automatically. Your monthly Profit & Loss report will show your true gross margin per platform, your total platform fees, and your net income — without any manual calculation.

BIR Compliance Notes for Your COA

The BIR requires that your books of accounts reflect all income and expenses. Key points for online sellers:

• Record ALL revenue including marketplace reimbursements. Coin reimbursements and voucher subsidies are taxable income.
• Sales returns reduce gross income but must be documented. Keep the return request screenshots and refund proofs in case of audit.
• Platform fee receipts: Download your monthly fee statements from Shopee Seller Center and Lazada Seller Center. These are your expense documentation.
• If you're VAT-registered: Platform commissions may carry VAT (TikTok and Lazada do issue receipts with VAT). You can claim input VAT on these fees.

A well-structured COA isn't just tidiness — it's audit-readiness. When BIR knocks, your books should tell a clear, consistent story about every peso your online store earned and spent.