BIR Ready Accounting: All You Need To Know

To be able to keep up with transactions and recording of data, businesses need to raise the bar and make things more efficient.

Obviously, traditional accounting has become unpopular these days, and accounting software, whether on-premise or cloud accounting software, is continuing to make waves.

Hence, there is an urgent need to have accounting software that can make tedious accounting tasks easy.

Each country has specific accounting requirements.

Even before actually pursuing accounting software in the Philippines, a company must be able to take into account one important feature: the consideration of the Bureau of Internal Revenue or BIR readiness of the system. 

The company will then need to register its accounting system with  the Bureau  Internal Revenue and pass its computerized accounting books and records to the Bureau soon after the taxable year has ended. 

If you use a computerized  accounting system that is not registered with the BIR, you will be penalized. 

And the penalty is quite considerable, and in the tens of thousands of pesos.

This is also a big amount for a small business, so it is better to be safe in complying than sorry. 

Is the cloud-based accounting ph you have right now ready and compliant with BIR’s Computerized Accounting System or CAS?

Whatever business you have for as long as it is operating in the Philippines, the accounting software system for your business should be BIR CAS-ready. 

How can you determine if your current accounting software system is BIR- Ready Accounting?

Learn more about the different components involved in a computerized accounting system.  

Initially, the business owner should be informed that the computerization of their accounting system does not happen overnight. 

To have the capacity to produce BIR-ready accounting books and computer-generated accounting records, your business has to integrate with the various components in your existing software system. 

As per the regulations set by the Computerized Accounting System (CAS), the four components that need to be  integrated are the following:

1. ACCOUNTING JOURNAL AND SUPPORTING RECORDS

This refers to the existing journal you have and all other supporting records that are under the accounting department.

These are the ones that your accountants work on every single day. 

2. APPLICATION SYSTEMS

These pertain to the application systems that produce your company’s official receipts, invoices, cash vouchers, billing statements, and other significant entries for your supporting ledger.

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

Sign-up for a FREE easyFS Accounting System now!

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

Sign-up for a FREE easyFS Accounting System now!

3. OTHER ACCOUNTING RECORDS 

This would include other subsidiary books that record your company’s sales, inventory, purchasing, accounts receivables, accounts payables, payroll, and other related ledgers.

4. THE POINT OF SALE (POS) SYSTEM

This means the point of sale (POS) system and/or cash register machines (CRM) that are both linked to your CAS or computerized accounting system.

These four components are key entries that need to be taken into account.

This is in fact, the first step to becoming CAS-compliant and BIR-ready.

The upgrade is a must, and you have to understand why these components need to be part of the CAS ecosystem. 

Secondly, you must then search for the correct Computerized Accounting System (CAS) for your business.

Search, Compare and Contrast, Choose and Decide on which BIR-ready accounting software to use for your business. 

There is a wide selection of BIR-ready accounting software available in the market but you will have to determine which software system matches well with the needs of your business. 

The ideal cloud accounting software Philippines should be a good fit for your company’s size and for the work it does in its home industry.

Another consideration is that it should also be scalable and ready to meet the demands of your growing business. 

Thirdly, you need to register your company’s Computerized Accounting System (CAS) with the Bureau of Internal Revenue (BIR).

BIR mandates that all computerized accounting systems used by small to large tax paying businesses be registered with them mainly for the purpose of streamlining tax audits.

Lastly, train and orient your accounting staff with the new CAS system.

It is advised to have an orientation and training with your staff and the CAS provider you have contacted.

Encourage everyone that this upgrade is for the best and they will surely benefit from the accuracy and convenience that it can do not just to the accounting department but the company as a whole. 

One BIR-ready accounting software for your business that is user-friendly, accurate, safe, reliable, and affordable is EasyFS. 

EasyFS is the one cloud accounting software in the Philippines that can help your business.

EasyFS is a Software-as-a-Service (SaaS) sales, inventory and Accounting system designed for Micro, Small, and Medium (MSME) Enterprises.

If you want to manage your business in real-time and in a WFH (Work from Home Setup), EasyFS can provide a turn-key solution to your most common business problems to effectively monitor your sales, check in real time your  inventory stock quantity, and most importantly the financial health of your business.

And most importantly, EasyFS is CAS compliant and ready for government taxation in the Philippines.

Book a free demo: https://human-incubator.com/easy-fis/

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

Sign-up for a FREE easyFS Accounting System now!

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

Sign-up for a FREE easyFS Accounting System now!