Intro to the BIR Computerized Accounting System (CAS)

The Philippines’ Bureau of Internal Revenue (BIR), through Revenue Regulations No. 09-2009, regulates the registration of Computerized Accounting Systems (CAS) for certain taxpayers.

A Computerized Accounting System is the integration of component systems to produce computerised books of accounts and computer-generated accounting records and documents. For companies categorised by the BIR as “large taxpayers”, adopting a valid CAS is mandatory. For companies that register voluntarily, a CAS is beneficial in many ways for preparing and maintaining accounting records.

To comply with the accreditation requirements, a company must submit the following:

1. Accomplished BIR Form 1900 (Application for Authority to Use Computerized Accounting System and/or Components Thereof/Loose-leaf Books of Accounts) and/or BIR Form 1907 (Application for Permit to Use Cash Register Machine/Point of Sale Machine);
2. Company profile, such as a photocopy of the BIR Certificate of Registration, previously issued permit (if applicable) and current registration fee payment;
3. Location map of the place of business;
4. Inventory of previously approved unused invoices and receipts, if applicable;
5. List of branches that will use the CAS, if any;
6. Technical requirements:
   1. Application name and software used (development and database)
   2. Functions and features of the application
   3. System flow(s)
   4. Process flow
   5. Back-up procedure, disaster and recovery plan
   6. Sworn statement and proof of system ownership
   7. List of reports and correspondence the system can generate, with description, purpose and sample layout
   8. Facsimile of system-generated loose-leaf books of accounts and list thereof, receipts and invoices
7. Additional requirements for affiliated or sister companies, franchisees and branches:
   1. Photocopy of the previously issued permit of the mother/sister company or another branch using the same system, if applicable; and
   2. Certification from the Computerized System Evaluation Team (CSET) that previously evaluated the approved system, if applicable.

The BIR checks the validity and completeness of the requirements. If complete, the application is endorsed to the CSET for evaluation through an actual system demonstration focused on how transactions are entered, the mechanisms involved, and the generation of required reports — summaries of sales and purchases, journals, ledgers, transaction trails and more. After the demonstration, the CSET raises points of concern that must be complied with. Once complied, a certificate of CAS accreditation is approved and awarded by the National Accreditation Board.

Adopting an accounting system must be carefully considered, whether a company is required to maintain a CAS or registers voluntarily. An integrated accounting system must address day-to-day operations — domestically or internationally — and meet regulatory requirements. If both internal and external reporting are addressed by the CAS, it will contribute greatly to the company’s success.

Today, one of the leading CAS-ready accounting platforms is mcframe GA, built by Business Engineering Corporation (B-EN-G) of Tokyo, Japan. Configured to adapt to different reporting requirements, mcframe GA is popular with companies expanding globally, and its strategic tools and features make meeting system-related CAS requirements easier than ever.

To find out more about mcframe GA, contact us or call (032) 422-8086.