All companies, large and small, need accounting to stay on top of their operations. When a company is just starting, a paper-based accounting system might be sufficient enough for the enterprise’s needs. As the company grows, however, the volume of information to keep track of also increases. At some point, the need for a computerized accounting system (CAS) only becomes more apparent.
A CAS is a high-functioning accounting software solution that automates several financial processes and stores all related information in an integrated system. While there are several off-the-shelf accounting programs you can purchase online, the Bureau of Internal Revenue (BIR) has specific requirements for businesses seeking to use a CAS. Technically, only large companies (whose asset size exceeds P100 million) are required by BIR to get their CAS officially approved and registered. However, small and medium-sized enterprises (SMEs) can also adopt a BIR CAS compliant system of their volition.
Considering how extensive the process is, the management of SMEs may be weighing the pros and cons of getting one. After all, compared to large companies, SMEs don’t always have the resources that the former can afford. That said, while the process does take a significant amount of work, SMEs stand to gain a lot in getting their hands on this powerful accounting software. To start, here are some reasons why you should get a CAS for your growing business.
Support Accounting Processes
Imagine your company’s accounting operations as a busy four-lane highway. In the beginning, the amount of data to process is small, so the cars (which represent groups of data) can still quickly go from one end of the highway to the other. As the company expands, however, the number of cars grows, and before you know it, the company suffers from congested data traffic. It holds back efficiency and productivity and hampers business growth.
When a company acquires a CAS, you’re transforming the four-lane highway into a twelve-lane super highway. Several repetitive processes such as data entry and report generation are automated, and tracking information becomes easier with a centralized system. You can then delegate the manpower for these tasks to more profit-generating ventures, such as data analysis. In this manner, you strengthen accounting processes, giving you the necessary data to manage the business more effectively.
Ensure Accurate Data and Financial Reports
Inaccurate data is a problem for company operations. Mistakes in data entry can snowball into bigger issues, such as misguided company decision-making and tax problems with the financial authorities. In an era where data is king, the need for accurate and up-to-date information has become more pressing, especially if the company wants to get an edge in a highly competitive market.
Manual accounting is inherently error-prone because people make mistakes from time to time. An accountant may mistype a digit while another person may have trouble reading handwritten ledgers. With CAS, SMEs can significantly decrease the risk of entry mistakes and misaligned numbers, especially with the help of barcode technology. By taking full advantage of CAS’ features, business owners can feel assured that they can rely on the data presented in the company’s financial reports, so they can lead the company to greener pastures.
Make Data More Accessible to Relevant Parties
Data management is not only about keeping information accurate. It’s also about making it accessible. Paper-based systems require the company to keep several books, reports, and receipts, among many other things. The sheer volume of papers to keep makes it difficult for relevant parties to store, maintain, and retrieve information when they need it. It also makes it cumbersome to analyze the available data, which can hold valuable business insights that SMEs can use.
Additionally, increased data accessibility can help businesses adjust to shifting work models in the market. As working remotely becomes more accepted and hybrid office models become more common, some sectors of SMEs may choose to modify their current workplace setups. Getting a CAS–one that can be accessed remotely–will make SMEs more equipped to adapt to these changes without sacrificing productivity.
To conclude, effective accounting is the cornerstone of every successful business. Big or small, companies that practice it can use the data they have acquired to improve their operations and thrive in cutthroat industries. While getting a BIR CAS compliant system takes a lot of work, it’s a solid investment for the company’s future–whether it’s in choosing the right product lines to support or remaining compliant with changing tax regulations. With CAS, SMEs can take control of their data and use it to fuel their growth.
To ensure that your business is fully prepared to stay on top of all of its business processes, it’s best to find a partner that can provide the best businesses solutions that can cover all aspects of your operations. And if you’re looking for one, ANSI has been helping local companies, big and small, in optimizing all of their business process through the various products that we offer. Whether it’s a full ERP suite or a customized accounting software solution, we’re here to ensure that your company is ready to tackle the various challenges within your industry. Contact us today for more information!