Being CAS-Compliant: Everything You Need To Know

Complying with requirements in the Philippines admittedly is long, tedious, and tiresome.

Lining up to have your license renewed takes the whole day if you are lucky enough.

For business owners, regulatory compliance is time-consuming and challenging. Some would resort to hiring fixers just to expedite everything.

But while it is true that compliance may not necessarily give you the revenue for your business, it is still worth prioritizing because compliance is key to being a legit business. 

One of the important regulatory compliance that every business should adhere to is the Bureau of Internal Revenue or BIR.

If you are currently upgrading to a computerized accounting system or CAS, you have to make sure that your CAS is BIR-ready accounting software.

The Bureau of Internal Revenue has stringent regulations when it comes to the compliance of every business.

Do you know that registering your CAS and updating your procedures for full BIR compliance will save you from staggering penalties?

If you have an outstanding record in complying you will have a better working relationship with the BIR.

If not, then do not expect a smooth ride with the tax collection agency. 

Now you might not have any idea at all when it comes to the requirements of the BIR.

How should you go about your BIR CAS compliance, and what requirements should you prepare? 

In being CAS-Compliant, here’s everything you need to know about the process.

First, check the type of business you have.

What type of business should use a CAS? 

Revenue Memorandum Order No. 1-2009, stipulates that all large taxpayers should upgrade to a Computerized Accounting System (CAS) and that they should register their chosen BIR-ready accounting software system at the BIR.

Although it is mandated for large companies, this does not limit small to medium-sized businesses to upgrading to a CAS.

In fact, this is a great preparation especially when the business is growing. 

If you think that this is optional, please think twice.

All companies that already have CAS or still intend to use a CAS for their accounting processes, whether they are mandated to by law or choose to do so on their own, must register their Computerized Accounting System (CAS) at the Bureau of Internal Revenue.

If the same companies have their existing CAS and opt to modify and add some enhancements to their online accounting in the Philippines, then they should still register this with the BIR.

These changes may be modifications to the functionality of the system, any addition or removal of modules and sub-modules, and any other changes that will affect some important financial aspects of the system.

Minor system enhancements to the CAS, like bug fixes, despite the minute detail, will still require a brief letter of notification to the business’s Revenue District Office, or RDO.

Now that everything is clear as far as having BIR-ready accounting software is concerned, here are some key components that your CAS should contain.

Basing it on Revenue Memorandum Order 29-2002, the BIR requires a CAS to contain the following  key components:

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Easy FIS gives you a highly-accurate and real-time view of your financial statements.

Sign-up for a FREE EasyFIS Accounting System now!

• A general journal, accompanied by other supporting records

• Accounting records such as record books for sales, books for purchases, books for inventory, books for accounts payable, books for accounts receivable, payroll ledgers, and subsidiary ledgers

• Application systems that are utilized in producing the subsidiary ledger and are responsible for official accounting documents, such as invoices, cash vouchers, official receipts, journal vouchers, sales tickets, and billing statements

• Application systems that are used for generating reports that are required by the BIR

• Point of sale (POS) systems or cash register machines (CRMs) that are linked to the CAS

If you have all these key components, then it will much easier for you to prepare and submit all the needed documents in registering your Computerized Accounting System (CAS).

These are:

• The official application form for BIR CAS registration is BIR Form 1900.

• Validating documents of the profile of the company like BIR Certificate of Registration, previously issued BIR permits, map showing the location of the business, and a list of the company’s  branches that will utilize the Computerized Accounting System (CAS) 

• The Computerized Accounting System’s technical requirements. These are:

• Application name

• A summary of features and functions

• System flow

• Process flow

• Disaster and recovery plan

• Proof of system ownership

• Samples of reports and correspondences that the CAS system  can issue

• For system modifications and enhancements, a copy of the previous BIR Permit to adopt CAS is required which will also include a letter to the agency detailing the improvement or enhancement to your CAS.

• Check with an authorized BIR-ready accounting software rep before finalizing everything. 

At a glance, all these may seem to be overwhelming and the process exceedingly difficult.

Thanks to BIR, they have made it simpler and more manageable.

Revenue Memorandum Circular No. 5-2021, has already streamlined the process of application.

No more system demos and PTUs or Permit to Use.

First-time CAS registrants only need to submit their documentary requirements for registration and wait three working days for an Acknowledgment Certificate before rolling out their CAS.

With this streamlined process, onboarding a BIR-ready accounting software is no longer daunting.

But if you are still uncomfortable with it, then EasyFS will guide you every step of the way.

Let us cut to the chase. EasyFS is BIR Computerized Accounting System (CAS) compliant. 

EasyFS is a homegrown software from the Philippines, so it currently adapts to its business practices, particularly the Taxation Regulation and Guidelines of the Bureau of Internal Revenue (BIR).

EasyFS is compliant and ready for Computerized Accounting System (CAS) so it will be easy for your business to apply with the BIR for accreditation. 

For free demo, check out: https://human-incubator.com/easy-fis/

Easy FIS gives you a highly-accurate and real-time view of your financial statements.

Sign-up for a FREE EasyFIS Accounting System now!

Easy FIS gives you a highly-accurate and real-time view of your financial statements.

Sign-up for a FREE EasyFIS Accounting System now!