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    Computerized Accounting System

    EST. 1996

12November

5 Reasons Why Your Company Should Adopt a Computerized Accounting System

It used to be the norm for business owners to implement manual pen-and-paper accounting systems to work out the company finances. While few businesses still adopt this policy now, many languish with accounting systems that are digitized for the most part but are manual in their ethos. 

As a consequence, accounting teams spend a lot of time-shifting from program to program, computing and reconciling data from separate documents, and laying it all out on separate reports. Worse yet, in spite of all this time and effort spent on completing accounting processes, the output may still be vulnerable to error. As Filipino business owners know all too well, even the smallest accounting mistakes can end up costing thousands of pesos. 

What’s the best way to remedy these problems and save both time and money on accounting? The answer may lie in adopting a computerized accounting system or CAS. A CAS is an information technology solution that uses automation, real-time data reconciliation, and other high-tech features to complete accounting processes. 

The Philippines’ Bureau of Internal Revenue (BIR) requires large taxpaying companies to utilize CASs for their accounting processes. But even a small or medium-sized enterprise (SME) may benefit from investing in a computerized accounting solution and registering their chosen CAS with the BIR. 

Table of Contents:

Here are the top five benefits of adopting a BIR CAS compliant system for your own company. 

1. It Will Improve the Speed and Accuracy of Your Accounting Processes

The most compelling reason to onboard a CAS is the mastery it will give your staff members over your accounting processes. Accounting tasks that may have taken hours before may now require only a few minutes of your staff’s precious time.

In addition, a CAS will allow your team members to cull their accounting data from a single source of truth. This will eliminate their need to go through different silos or to shift through multiple systems just to reconcile data and to see if accounting records are kept accurately. 

2. It Will Bolster Your Business Efficiency and Save Your Company a Lot of Money

A computerized accounting system will also allow your company to cut down on expenses related to slow and inefficient manual accounting processes. These include costs from human error and from overtime labor when you’re nearing an important accounting deadline.

The CAS is also backed by technology that keeps your accounting data organized, readily accessible, and secure from bad actors. In the long run, you’ll also be saving your company money on system failures or from data breaches. 

3. It Will Help You Respond to Financial Issues in Real-Time

Once you adopt a computerized accounting system, one thing you’ll notice is that you and your staff will have more bandwidth for bigger-picture decision-making about your company finances. Not only will you be able to crunch your numbers more quickly, but you will also be able to gain a 360-degree view of your financial situation that may not have been possible before.

That also means that you will be better equipped to make important decisions about aspects like purchasing, accounts payable and accounts receivable, and inventory. In aspects like these, you will have time on your side. If a major issue occurs in your finances, you will be able to respond to it quickly because you were able to survey real-time financial information supplied to you by your CAS. 

4. It Will Make Tax Compliance Easier

Computerized accounting systems are a necessity for large taxpaying companies under Philippine law. But even businesses that don’t fall under this bracket will be able to get ahead on their tax compliance thanks to their adoption of a CAS. Your CAS solution will definitely help you navigate through complicated tax requirements and prepare reports that are compliant with BIR guidelines.

Being conscientious about tax compliance is a hallmark of good financial housekeeping, which any type of business will benefit from. So even if your business isn’t required to follow the BIR’s CAS guidelines, it will be a good idea to do so all the same.   

5. It Will Be Instrumental in Future-Proofing Your Business

Lastly, a well-implemented computerized accounting system will earn your company a strong financial and technological foundation for its future endeavors. If you’ve got your sights set on expansion or even global operations, your accounting system is one of the first things you should modernize.

It will help your company adjust to global accounting and financial standards as well as local ones, and it will set a precedent for your success in an increasingly globalized and digitalized future. 

Final Words: No Better Time Than Now to Adopt a CAS

Adopting a computerized accounting system and registering it with the BIR used to be a tedious and time-consuming affair. But as of December 2020, there’s no longer a need for businesses to apply for BIR accreditation and secure a Permit to Use (PTU) for their chosen CAS.

Revenue Memorandum Circular (RMC) No. 5-2021, which is the BIR’s latest directive on the matter, has now dispensed with the PTU and only requires businesses to register their chosen CAS at the agency. 

Now that the process for registration has been simplified, it’s a good time for your company to look for a computerized accounting solution and file it at the BIR. The extra effort will go a long way in improving your company’s accounting processes and guaranteeing its longevity.

Written by: Ansi Info Systems

 

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