Keeping Up With A BIR-Ready Accounting System

Have you tried getting out of the house one day and suddenly stopped, thinking that you missed bringing out something? Probably, your phone or your lunch bag?

This is one of those times perhaps you have missed out on those reminders from the BIR regarding your company’s compliance. Or most probably, you have also missed out on updates on the rules and regulations on the registration of CAS or Computerized Accounting System. The BIR’s Revenue Memorandum Circular (RMC) No. 10-2020 was put to a standstill and the Permit to Use CAS was also put on hold and 

There were many rules imposed and admittedly it was a long and daunting process. But when the pandemic hit, there were many changes in regard to CAS registration. It is now improved and more workable and such a welcome treat to most businesses in the Philippines

The rule to implement RMC No. 10-2020 was a very positive development to the taxpayers as the registration timeline of CAS was drastically cut to three (3) working days from what used to be tedious and seemingly a forever-kind of thing. The timeframe was really a burden to many.

The number of general documentary requirements was also lessened and it’s such a welcome change! It was considerably reduced to three (3) documents as compared to the previous requirements that were really a pain in the neck!

The policies were also simplified and its components toned down. So, what is the real catch here?

Can taxpayers use the Computerized Accounting System or CAS outright without going through any CAS registration process? 

Well, you cannot run away from it. The answer is – NO.

Although the new rule dispenses with the requirement for the issuance of Permit to Use or PTU CAS, the BIR is still requiring businesses to register to the system. While RMC No. 10-2020 was still in effect before, there were many queries like, “ Is there still a need to submit the BIR Application form or is the BIR still requiring systems demos before getting CAS?”

But all these were addressed when submission of the forms were all dispensed with and just a post-evaluation or audit to check CAS compliance standards were required.

Anyway so much for all these technicalities, what should you do to keep up with being CAS compliant?

If your business is starting to expand, you may have to decide to wean your staff off of manual accounting processes and to invest in computerized systems. Before anything else you have to make sure that it is a BIR CAS-ready accounting software.

Having access to automated online accounting in the Philippines will definitely make your accounting processes quicker, more efficient, and more up-to-date. The same automation efforts will also help lower your expenses incurred due to human error, and to some extent being involved in BIR penalties.

However, your goal should not just end in making your system computerized. You should also make sure that your accounting system is BIR CAS-ready and compliant soonest.

To make sure that your online accounting system in the Philippines are in line with BIR’s rules on CAS, here’s a list that you should be mindful of:

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!

1. Know The Components Involved in a Computerized Account System CAS

The first thing that business owners need to know about the Computerized Accounting System is that it is not that easy and it is not a one-time thing. In order to produce CAS-compliant accounting books and computer-generated accounting records, your company will need to integrate with various components in your existing systems.

Here are the four components that need to be integrated:

1. The General journal and all other subsidiary records that your accountants work on every day.

2. The accounting records that make up your sales book, inventory book, purchases book, accounts receivable and accounts payable books, payroll ledger, subsidiary ledger, and more.

3. The Application systems that generate your company’s official receipts, invoices, cash vouchers, billing statements, and other entries for your subsidiary ledger.

4. The point of sale (POS) system and/or cash register machines (CRM) that are all linked to your computerized accounting system CAS.

The key to keeping up with BIR CAS-ready accounting software will involve taking into account the different four components. Once you understand which components are included in your CAS ecosystem, the processes of registering your CAS and introducing the Computerized Accounting System CAS in your company will be a lot less difficult.

2. Find the Right Computerized Accounting Solution for Your Business

The second step to achieving CAS compliance and having a BIR-ready accounting system is deciding on which computerized accounting solution to use for your business. 

There are several viable solutions available on the market, but you will want a system that matches the needs of your business. Please make sure what your needs are according to the kind of business you have. The ideal computerized system should be a great fit for your company’s status and size. It should also be scalable when the business grows in the future. 

One computerized accounting solution that’s been widely adopted by Filipino businesses is the flexible, easily configurable, and user-friendly EasyFS.

EasyFS acts as an all-in-one business software solution. EasyFS guards your cash flow! EasyFS is Software-as-a-Service (SaaS) cloud accounting system that prevents cash flow shortages by accurately tracking purchases and business expenses. And to keep cash flowing, you can invoice your customers anytime, anywhere.

Monitor your invoices, send follow-up reminders, and collect payments online.

And cash consistently flows because your hot-selling items are never out of stock with easyFS providing you with real-time inventory reports anytime, anywhere.

3. Register Your Company’s CAS at the BIR

BIR mandates that all computerized accounting systems used by large tax paying businesses be registered with the agency, mainly for the purpose of streamlining tax audits.Keep up with a BIR CAS-ready accounting system requirement by using EasyFS. For a free demo, check out: https://human-incubator.com/easyfs/

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!