Which of the following is NOT a recognized method to maintain books of accounts under RMC No. 029-19?

• A. Electronic Records stored in cloud without permit
• B. Manual Books of Accounts
• C. Loose leaf Books of Accounts (with Permit to Use)
• D. Computerized Books of Accounts (with Permit to Use)

Answer: (A)

Under RMC 029-19, you can keep books of accounts in manual form, or in electronic form only if there is a valid Permit to Use for the specific system (loose-leaf with permit or computerized with permit). The key idea is that any electronic method must be authorized through a permit to ensure the records are complete, accessible, and auditable by the BIR.

Electronic records stored in the cloud without a permit to use are not recognized because they lack that official authorization. Without a permit, the BIR cannot guarantee that the cloud system meets the required standards for data integrity, retention, retrieval, and auditability. The other methods—manual books, or electronic formats that have a valid Permit to Use (loose-leaf or computerized)—are acceptable because they operate within the approved framework and can be verified during audits.