For a business to succeed, accounting is essential.
It is also the most integral to ensuring seamless operations of every business.
It supports management in maintaining a continuous lookout of the company’s finances and being on top of it all.
Through the years, we have been doing accounting methods but with the computer age, much has changed.
We are now in the era of intelligent software doing the job, specifically a cloud-based bookkeeping software, undeniably, a very powerful tool in accounting.
With the rise of computerization and technological advancement comes the computerized accounting systems (CAS) being implemented in companies.
What are CAS and what is its importance? Why require CAS?
There are many different ways to define computerized accounting systems but in a nutshell, it is a smart and high-functioning bookkeeping software that achieves a number of automated accounting processes.
It can be hosted in various methods through the following: a network server, an assigned single computer or cloud-based.
What is the purpose of having a computerized accounting system?
Managing a business is a daunting task but with the help of CAS, financial management, report-making, bookkeeping and all the other complicated accounting processes are done more effectively and accurately.
CAS has modules included and caters to all these accounting operations:
- Purchase Order
- Bookkeeping
- Invoicing
- General ledger
- Inventory module
- Invoicing
- Accounts payable
- Accounts receivable
- Electronic payment processing
The company will be able to benefit from all of these with timeliness, accuracy and efficiency while performing the following functions:
- effective payroll distribution
- fast and easy reporting
- flexible banking and
- synergized systems altogether.
The Bureau of Internal Revenue (BIR) has required big companies to have a computerized accounting system.
This is one of the main reasons why many are looking into it.
CAS is not just for large scale businesses but also, beneficial for small to medium sized enterprises (SMEs).
Here are some of the benefits of a computerized accounting system:
Simplification
There is a flood of data and tons of figures in reports, financial statements and all other documents. CAS simply simplifies it. CAS handles the bulk of computations. The results of data are more reliable and accurate and generating reports are faster.
Automation
Data encoding is boring and time-consuming. With the database that is centralized, information is encoded into the system only once and there is only the need to enter new information in the system. It reduces errors in data entries.
Cloud-based
Also known as Software-as-a-Service (SAAS), cloud based software is a software application that is hosted in the cloud and is stored and accessed with the use of the web browser, a dedicated desktop client or an API (Application Programming Interface) that integrates with the desktop or mobile operating system.
Enhanced Management
With accurate data, faster generation of reports and proper monitoring of financial health, a company becomes more equipped in making decisions as far as growing the company in leaps and bounds is concerned.
Tax Compliance
Having a computerized accounting system makes the company tax compliant, legitimate and operates within the bounds of the law. CAS helps the company grow, expand and establish good standing.
To make sure that your accounting tasks are in sync with BIR’s rules on CAS, here’s what you need to consider:
The initial step for the company to consider is to know about the existing accounting systems and make sure to sync up with the different components of CAS specifications.
CAS Regulations
As per CAS regulations, the four components that need to be in sync are:
- The company’s general journal and all other subsidiary records that accountants work on.
- The company’s accounting records that contain your sales book, inventory book, purchases book, accounts receivable and accounts payable books, payroll ledger, subsidiary ledger and many more.
- Systems that produce your company’s official receipts, invoices, cash vouchers, billing statements, and other entries for your subsidiary ledger.
- The cash register machines (CRM) or point of sale (POS) system that are linked to your computerized accounting system.
Knowing the first step and preparing the four components will make it a lot less daunting and the road to ease and accuracy is now at hand.
Now, on to the second step.
Look for a perfect bookkeeping software that is CAS compliant and is cloud-based, efficient and works well within your budget.
One software that is proven and widely used is EasyFS.
Here are some Key Features and Benefits of EasyFS.
- End to End Accounting Software with Sales and Inventory Integration.
- Cloud-based and Software as a Service (SAAS).
- Multi-currency. The system is capable of making transactions in different currencies.
- Multi-language.
- Higher Accuracy and real-time reports.
- Faster Coordination with Teams.
- Cost effectiveness by reducing paper and Ink wastages.
- Low cost of deployment and maintenance.
- Improve customer service.
- Philippine Taxation Law Ready. EasyFS follows the Regulations and Guidelines set by the Bureau of Internal Revenue (BIR).
- Compatible with POS front-end Software.
- Multi-Branch. The system is capable of having multiple Stores, Branches & Warehouses to monitor Sales and Inventory across your company.
Now the third step is to become CAS compliant.
Register your chosen software at the BIR.
With EasyFS. being BIR accredited and CAS compliant, it will be much faster to streamline tax audits.
Knowing compliance requirements and following them is such a hassle, with EasyFS, you are assured of BIR accreditation.
Accelerate your company’s growth with EasyFS.
It is designed perfectly for sales, inventory and accounting systems designed for micro, small and medium enterprises (MSME).
Sign-up now to get a FREE Trial Account of EasyFS. Click here to Sign-up.
