Though only large Filipino taxpayers are required by the Bureau of Internal Revenue (BIR) to register and use an accredited BIR computerized accounting system, it’s high time for small and medium-sized enterprises (SMEs) to consider onboarding the technology as well. Today’s business environment is digitally driven, and one process that’s definitely worth digitalizing as soon as possible is accounting.
Shifting from analog accounting methods to a fully computerized accounting system may seem like a daunting prospect, as well as an expensive one. But there are several configurable solutions in the market that can be tailor-fitted to a business’s individual needs.
If you haven’t thought about purchasing a BIR-compliant computerized accounting system, or CAS, here are five benefits that you’ll unlock once you onboard the technology. The improvements to your accounting processes, as well as other aspects of doing business, could be well worth the investment.
It’s no secret that accounting is one of the most complex business processes to take care of, and even seasoned accountants can find their daily work quite challenging. You will be able to ease your accountants’ burdens and help them manage their workload with a dedicated CAS. The CAS’s automation and data consolidation features will prove extremely useful in calculating and reconciling expenses, as well as compiling reports that fit the template required by oversight agencies like BIR.
If your accountants are more at ease when they’re crunching the numbers for your business, you’ll be rewarded with a better grasp of your entire financial situation. Make them masters of their work and empower them with a BIR-compliant CAS.
The CAS will also allow you to complete accounting processes with greater speed, accuracy, and efficiency than if you relied on analog accounting methods. It will take much less time to calculate your total expenditures and to consolidate info about your financial transactions from month to month. On top of being more streamlined, your accounting data will also be more accurate and up-to-date. That means that it will also be easier for your staff to avoid accounting mistakes, which can often result in costly penalties.
In other words, you will be able to save a lot of time and money in the long run because you’ve achieved greater business efficiency with your CAS. Reduce the liabilities that you can incur from your accounting system and transform it into something that can add even more value to your business.
One big disadvantage of a predominantly analog accounting system is that it is especially vulnerable to the impact of a disaster. Records kept on a manual accounting system can be easily destroyed by fires, floods, pests, and other threats in the natural environment. They’re also susceptible to getting stolen or compromised through a security breach.
As a business owner, you may already know that if anything happens to your accounting data, you could incur a devastating loss and have trouble recovering your data assets. You can shield your business from grave damage by investing in a BIR-compliant CAS that’s operable from the cloud. These systems are sure to contain effective security features, and they also oversee the syncing of your accounting data so that it can be recovered in case of an emergency.
As your company’s accountants will likely attest, one of the most tedious aspects of doing the job pertains to compiling financial reports. With a manual accounting system, financial reporting likely involves a cumbersome process of retrieving financial data, plugging each expenditure one by one into a template, and then converting that template into a BIR-compliant report format.
But the process of completing a financial report no longer has to be as time-consuming or as exhausting as it once was if you upgrade to a CAS. The system can automatically generate neat, complete, and BIR-compliant financial reports that properly reflect your real-time financial situation. You will be able to compile reports that are immediately ready for submission to the tax collection agency, thus reducing the time and effort it takes to stay compliant. In addition, you can use the same reports for business intelligence and base crucial financial decisions, like those related to purchasing orders and suppliers, on what you are able to glean from each report.
Last but definitely not least, upgrading to a CAS may be beneficial not only for your accounting department, but other departments in your business as well. If the CAS can run smoothly alongside other business technologies, like enterprise resource planning (ERP) software, your accountants will be able to sync their work with that of staff whose jobs are closely interlinked to theirs (i.e. salespersons, IT staff, and warehousing staff).
Thanks to innovations like a CAS, it will be easier for everyone to share data and be on the same page about where your business stands in terms of profits, losses, revenues, and liabilities. Your accounting performance will impart a positive impact on the other aspects of your business, and the work you do with your staff will feel more cohesive.
To get a taste of what a BIR-compliant CAS can do for your company, get in touch ANSI Information Systems. We have more than 30 years’ worth of experience working with Filipino businesses and helping our clients find the software solutions that work best for them. We’d be happy to impart the same knowledge to you and get you up to speed on your accounting processes. Contact ANSI today if you want recommendations for a BIR-compliant CAS or if you’d like to schedule a demo.