Considerations of Becoming BIR-CAS Compliant


What is CAS? For others, this is a new acronym. But for businesses, it is a premium term for compliance. It is also known as a computerized accounting system, which is a requirement that the Philippines’ Bureau of Internal Revenue (BIR) demands of large taxpayers. 

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What does it mean to become BIR-CAS compliant? It means integrating accounting components in such a way that an organization can manage its own set of computerized accounting books, records, and documents.

Then the company will have to have its system registered with the BIR. They will also have to pass their computerized accounting books and records to the agency soon after the taxable year has ended. 

Large taxpayers using any computerized accounting system from off the rack that is not registered with nor authorized by the BIR will have dire consequences, and they will have to pay the price – a penalty. And it is not a good thing because the penalty is in the range of tens of thousands of pesos — for the first offense. 

For small taxpayers, even if having a BIR computerized accounting system or CAS-ready system is not a requirement, having one would still be a big leap in the right direction towards modernizing and integrating accounting systems, as the business will eventually grow. Future-proofing comes to mind.  

This is because every time a business grows, its accounting processes also change and are sure to get more complicated. There is more money involved, more documentation needed and more clients to manage, more accounting decisions to implement, and voluminous transactions to oversee. 

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

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

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Of course, when your business is already expanding, more than manual processes may be required. Making a wise decision to adopt automation will surely make your accounting processes faster, more efficient, and more up-to-date, especially when you search for accounting software that is already BIR computerized accounting system or CAS-ready. Deploying a BIR CAS-ready accounting software will help you cut down on your expenses that are usually caused by human error. BIR CAS-ready accounting software enables most accounting staff to spot data entry mistakes that would otherwise result in BIR penalties. Having a BIR-computerized accounting system is very much cost-effective.

Automating your accounting systems is a great objective, indeed, but you should continue. You should also prepare and set to be BIR CAS- compliant as soon as possible. 

To make sure that automating your processes is in line with BIR’s regulations on Computerized Accounting Systems (CAS), here is what you need to consider: 

1. Be Ready to Integrate with CAS Components 

There are different Computerized Accounting System (CAS) components that you need to be mindful of. You need to understand that this is not a one-time deal. It is a process, so follow the process. To produce BIR CAS-ready accounting books and computer-generated accounting records, your company must be ready to integrate with the different components in your existing systems. These records would include the following: 

  • Your general journal and all other supporting records. 
  • Your company’s accounting records contain the ff:  
    • sales book,
    • inventory book, 
    • purchases book, 
    • accounts receivable and accounts payable books, 
    • payroll ledger, and 
    • Subsidiary ledger.
  • Your official receipts, invoices, cash vouchers, billing statements, and other entries for your subsidiary ledger.
  • Your point of sale (POS) system and/or cash register machines (CRM) that are connected to your CAS computerized accounting system.

Being BIR-CAS compliant will involve taking into account these financial records.

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

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

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2. Look For the Perfect Computerized Accounting Software

Then it would be best if you looked for the perfect computerized BIR-ready accounting software that is most suitable for your business. There is a wide array of options available in the market, but you will want a software system that matches the needs of your business. The ideal BIR-ready accounting software solution should be a good fit for your company, considering the size and the kind of service it provides. And it should be ready to adapt and be scalable when the business grows.

3. Register your CAS with the Bureau of Internal Revenue

If you have chosen your Computerized Accounting System, then register with the BIR. BIR mandates that all computerized accounting systems used by large tax-paying businesses be registered with the agency, mainly to streamline tax audits. The process could be tedious, but it is imperative to do so. The guidelines for registration may eventually improve in the coming years, but you should keep track. Ask your CAS software provider if they adhere to the BIR’s standards. 

4. Learn More About CAS and Cascade To Your Employees

This is a new operational procedure. And most often, the staff are the ones to implement. So, they need to learn about CAS. Although they already have an idea, learning a new technology still takes time and adjustment. It is a great idea to have an orientation and training with your accounting staff and your CAS software provider. Acclimatizing the new CAS is understandable and part of the process. While doing so, encourage your employees to give feedback for better learning. Give yourselves ample time to learn your way around the system and to prepare the requisite CAS-compliant documents on it, like your tax reports.

5. Rev-up Your BIR-CAS Compliance with EasyFS

One BIR-CAS-ready accounting software is EasyFS. It is flexible, easily configurable, intuitive, and user-friendly. There are many solutions out there that claim CAS compliance but not all software is created equal, and not all of them are compliant with BIR Computerized Accounting System (CAS) regulations.

For small and medium-sized enterprises (SMEs) in the Philippines, finding online accounting software that is both BIR CAS-ready and easy to use can be a challenge. This is where easyFS comes in – the perfect solution for SMEs looking to streamline their accounting process and stay compliant with BIR regulations. We keep track of the latest BIR guidelines for CAS to ensure that our software is always compliant, and we make it easy for you to generate BIR-compliant financial reports on time and avoid any potential penalties.

At easyFS, we understand that accounting can be a daunting task for small businesses. That’s why we’ve designed our cloud accounting software to be user-friendly and intuitive, making it easy for you to manage your finances and stay on top of your accounting obligations.

Improve your team’s efficiency and collaboration. Make things easy with EasyFS. Book a demo and find out for yourself:

Easy Series

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EasyFIS 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, EasyFIS can provide a turn-key solution to your most common business problems to effectively monitor your sales, checking your LIVE inventory stock quantity and most importantly the status of your business’ financial health.

On top of that EasyFIS is CAS (Computerized Accounting System) compliant ready for government taxation in the Philippines.

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EasyHR is a Software-as-a-service (SAAS) web application that helps to manage your Payroll and Human Resource Tasks easily and effectively.

Whether you are handling less than ten (10) employees or up to more than ten thousand (10,000) employees, EasyHR can do the job for you and saves you a lot of time in computing your Payroll and managing your Employee 201 Records anytime and anywhere.

But not only that, EasyHR further has an Employee Portal that allows your employees to access it online and check their own Payslips, Overtime, Leaves and Time Records. It saves a lot of time and money in printing these Payslips and paper wastage.

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EasyPOS is a standalone Sales and Inventory system designed for businesses with Physical Stores and does not necessarily need an Internet or cloud solution.

The software is very easy to use yet already fully loaded with the necessary daily functions in running a store.

It already has a complete Sales and Inventory system with Item components.

Barcode and Touchscreen Interface that can be used for both groceries and restaurant setup respectively. Plus it is already BIR Accredited to legally issue Sales Invoice (SI) and Official Receipts (OR).

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