Here are the commonly asked questions about finance and its processes answered and explained:


  1. Main difference between reimbursement and disbursement.
  • In general, the difference between reimbursement and disbursement is that the instance or process of disbursing while the other is the act of paying. From the VAT point of view, the two systems are significantly different. That’s because reimbursements are subject to VAT, while disbursements are not.


2. What does a bookkeeper do that is different from the finance manager?

  • The bookkeeper’s job pertains to the documentation of different transactions, both into and out of the organization. Bookkeeping is generally considered the compilation of financial statements that can then be used by the freelancer or small business owner to conduct sound financial management. In contrast, the financial manager’s job is to a focus on transactions that have already taken place and ensuring that they are correct and considering ways to better them in the future. Financial management deals with financials statements, that are used to consider things like budgets, profits and overall financial checks.


3. What happens when the client’s expected payment is overdue for 3 days since their said given date of payment?

  • The finance manager or the bookkeeper shall make a friendly phone call to the client and ask if they have received the invoice with the follow-up email. If they haven’t, either one of them are tasked to resend invoice to the client. Refer to this link for the full breakdown on the SOP on what to do when this happens: https://hoithr.freshdesk.com/a/solutions/articles/63000269319


4. Do you really have to follow the template and spiels provided or you can communicate on your own when doing follow up calls?

  • Spiels are provided to be followed. However, you can improve some parts. What is important is you have delivered the message you want to impart and that you have mustered courtesy and politeness when talking to someone. It is important to not be rude to clients even if they are rude to you. Always keep your cool.


5. Does Cebu have Autosweep and Easytrip? What is Autosweep and Easytrip? Why is it different from each other?

  • No, Cebu does not have Autosweep and Easytrip. Only Manila has Autosweep and Easytrip.
  • Autosweep and Easytrip are electronic tollway collection systems that utilize RFIDs for users to pass through the mentioned expressways smoothly and cash-free. The main difference of both is that Autosweep focuses on those traveling via Skyway, South Luzon Expressway (SLEX), NAIA Expressway (NAIAX), and Apolinario Mabini Superhighway while Easytrip is for vehicles traversing the North Luzon Expressway (NLEX), Subic Clark Tarlac Expressway (SCTEX), and Cavite Expressway (CAVITEX).


6. What is the main difference of a credit card or a debit card? What is the card used in the company by the employees? Is it a credit or a debit card?

  • The main difference is that debit cards allow you to spend money by drawing on funds you have deposited at the bank. Credit cards allow you to borrow money from the card issuer up to a certain limit in order to purchase items or withdraw cash. Employees in the company are tasked to acquire debit cards for payroll. Credit card applications are for personal musings and are not related to the company.

 

7. Why are all finance processes done in Xero?

  • Xero is an all-around portal which helps the company regulate funds and cash flow. The company uses Xero for it is systematized and it has been proven effective since it has been used for years in the company. The whole finance department revolves around Xero.


8. How important is a BIR renewal to a company?

  • Failing to obtain or renew a business license can be a costly mistake, resulting in significant penalties, such as fines, lawsuits and in extreme cases, even arrest. As the consequences of running a business without a license can be far reaching and have a long lasting impact on your company, it is crucial that you understand the risks of non-compliance. If you operate your business without a valid license, at a minimum, you should expect to have to pay a fine or penalty. This is the most common scenario might occur when a business fails to comply with business license requirements.


9. What is an IM Cash Fund and how is it different to a Petty Cash Fund?

  • An IM Fund is a small cash fund to make incidental purchases during onsite projects where normal purchasing methods are not practical. It is different from the Petty Cash Fund for this fund is specifically made and is used solely by the IM or Infrastructure Management department.


10. Can you still avail the bereavement leave if it is not an immediate family member?

  • You can file a leave but it won’t be considered a bereavement leave and you cannot avail of the cash benefit as well for the bereavement leave and the bereavement cash benefit are for the death of immediate family members only.


11. What is the difference between the Pag-IBIG loan and the SSS loan?

  • Since both have their pros and cons, you should carefully look into the specifics of each loan and compare them side by side. To help you see where one excels over the other, refer to the table below:


12. How do you acquire said loans?

 

  1. Can the PhilHealth loan be used in any hospital?
  • Yes, the PhilHealth benefit can be used in any hospital as long as the employee or the dependent of the employee meet the qualifications and are able to provide the needed requirements in availing the said benefit.