Posted on 2020-09-01
The Philippines’ Bureau of Internal Revenue (BIR) thru Revenue Regulations No. 09-2009 regulates the registration of Computerized Accounting Systems (CAS) for certain taxpayers.
Computerized Accounting System (CAS) is the integration of different component systems to produce computerized Books of Accounts and computer-generated accounting records and documents. For companies categorized by the BIR as “large taxpayers”, the adoption of a valid CAS is mandatory. For some companies who voluntarily chooses to register, a computerized accounting system is, in many ways, beneficial in the preparation and maintenance of accounting records.
To comply with the requirements for accreditation, a company must submit the following documentation requirements:
1. Accomplished BIR Form 1900 Application for Authority to Use Computerized Accounting System and/or Components Thereof/Loose-leaf Books of Accounts, 2002 Enhanced version and/or BIR Form 1907 (Application for Permit to Use Cash Register Machine/Point of Sale Machine, 2002 Enhanced Version;
2. Company profile such as photocopy of 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 CAS, if any;
6. For technical requirements are as follows:
a. Application Name and Software Used (Development & Database)
b. Functions and Features of the application
c. System Flow/s
d. Process Flow
e. Back-up Procedure, Disaster and Recovery Plan
f. Sworn Statement and Proof of System Ownership
g. List of Reports and Correspondences that can be generated from the system with their description, purpose and sample layout
h. Facsimile of System Generated Loose-leaf Books of Accounts and List thereof/Receipts/Invoices
7. Additional requirements in case of affiliated companies/sister companies, franchisees and branches:
a. Photocopy of previously issued permit of mother/sister company, another branch using the same system, if applicable; and
b. Certification from Computerized System Evaluation Team (CSET) which previously evaluated the approved system, if applicable.
The BIR will check the validity and completeness of the submitted requirements. If the requirements are complete, the application is endorsed to CSET for evaluation. The evaluation is done through actual system demonstration that focuses on how transactions are inputted into the system, the mechanisms involved, and the generation of reports as required by the BIR. This includes a summary of sales and purchases, journals, ledgers, transaction trails, and etc. After the demonstration, the CSET will raise points of concerns regarding the proposed CAS and these matters must be complied with. When complied accordingly, a certificate of CAS accreditation will be approved and awarded by the National Accreditation Board. In some ways, the adaption of an accounting system must be carefully considered by a company, whether it is required to maintain CAS or planning to register voluntarily. An integrated accounting system must have the capability to address the needs of the company in dealing with its day-to-day operations whether domestically or internationally as well as the capability to meet regulatory requirements. If both internal and external reporting is addressed by the CAS being adapted, it will be valuable in contributing to the company’s success. Today, one of the leading CAS-ready accounting platforms in the market are mcframe GA. This system built by Business Engineering Corporation (BENG), a successful company from Tokyo, Japan has made its way into the Philippines. Configured to adopt to different reporting requirements, mcframe GA has been dominating companies that are expanding their businesses globally. With a pack of strategic tools and features, meeting the system-related CAS requirements have never become easier.
To find out more about mcframe GA, visit our website at www.n-pax.com or call us at (032) 422-8086.