Now that we’ve entered the digital age, most Filipino businesses have undergone some form of modernization in the way that they do business. A large percentage of small and medium-sized enterprises have shifted their sales, marketing, and customer service functions to websites and social media platforms. Many have also become reliant on e-wallets and online banking systems for business transactions and customer payments.
But despite a pressing need for businesses to get a better handle over their finances, their accounting systems are often the last to be modernized. Filipino entrepreneurs are often scared to onboard new accounting technologies because of the perceived cost, complexity of operation, or risk of business disruption. As a result, many still choose to contend with manual accounting processes or accounting methods that are merely digitized but still analog in nature (for example, keeping accounting records on separate Excel spreadsheets).
It may be just as scary for you to explore a computerized accounting system (CAS) for your own business. But there are several advantages to using a BIR CAS accredited system, especially if you intend to future-proof your business for the long haul. Here’s a treatise for why a CAS will serve you better than a manual accounting system and why you should consider making the upfront investment in a BIR-compliant accounting solution.
It Saves a Significant Amount of Time
One of the strongest arguments to be had for upgrading to a computerized accounting system is the speed at which you’ll be able to complete key accounting processes. Using manual accounting processes can cause days’ worth or even weeks’ worth of delays in reconciling all the data in your books. By the time you and your staff are done accounting for receipts, sales invoices, and other accounting documents, a new batch of these will roll in and overwhelm you all over again.
But the advanced calculation and automation capabilities on a computerized accounting system will allow you to complete these key processes instantly. You can expect fewer delays when it comes to consolidating your financial records, and less stress for you and your accounting staff come the end-of-the-month accounting deadlines.
It’s More Accurate
If you’re involved in your company’s accounting processes, you may already know that getting the values wrong by even just a hair can cause you a lot of trouble during the next auditing period. But you are at greater risk of suffering from these accounting mistakes if you rely on manual processes. You and your staff will continue to have a hard time backtracking and rectifying each mistake, and you will lose valuable time and energy as a result.
A computerized system will ensure not only speed, but also accuracy and consistency for all your accounting processes. With the same method of input and same numerical basis for every process, you’ll end up with consistently accurate and up-to-date accounting records all the way down to the centavo.
You’ll Achieve Full Visibility Over Your Company Finances
Because they’re so tedious and because they often require a piece-by-piece method of completion, manual accounting processes tend to put metaphorical blinders on those who are carrying them out. When you and your accounting staff are too focused on individual accounting documents, you risk losing sight of the bigger picture that governs your finances. Without full visibility over your money matters, you may miss out on important trends that affect them. These include issues such as missed revenue opportunities or bleeding due to a lack of operational efficiency.
But thanks to your CAS, you’ll be able to complete the nitty-gritty processes quickly. In turn, you’ll have more time to analyze your finances and find opportunities to stop bleeding or maximize your revenues. In this regard, a CAS will be much better at building business value than a manual accounting system.
It’s Easier to Protect and Recover Your Accounting Data
A constant source of stress for entrepreneurs is business interruption due to calamity, error, or sabotage. You may be hounded by the same worries. What if thieves break into your headquarters and steal the hardware you use for your accounting processes? What if a software glitch wipes out all your accounting data? What if a natural disaster destroys both the hard copies of your accounting records and the computer equipment containing the soft copies?
Businesses that rely only on manual accounting processes have a harder time bouncing back from these events. In contrast, computerized systems that operate from the cloud allow both better security and faster disaster recovery for your accounting data. To ensure that your business has a fighting chance of surviving these events, you’ll want to equip it with a computerized system that hosts excellent security protocols and backup abilities.
It’ll Streamline Your BIR Compliance
Regulatory compliance to agencies like the Bureau of Internal Revenue (BIR) keep businesses on their toes, more so if they rely on manual accounting systems. This often entails spending days, if not weeks, poring through accounting records and compiling manual reports. Manual accounting systems also make it difficult to customize financial reports according to the template they need to follow.
That’s why it’s a good idea to invest in a CAS that is BIR compliant and to officially register the system with the said agency. It will take no extra effort on your part to adjust the particulars of each financial report so that it meets BIR specifications. That also means that you’ll worry less about penalties due to missing a compliance deadline or submitting documents that are not fully compliant with BIR’s requirements. That alone is a good enough reason to onboard a CAS and to go through the BIR CAS registration process.
The Bottom Line
The evidence is clear: one of the best things you can do to modernize your company is to invest in a computerized accounting system. Doing so will speed up your accounting processes, make your accounting staff more efficient with your money matters, and allow you to complete your accounting and bookkeeping duties even under stress. Consider upgrading your accounting system to a computerized one, and look for a trustworthy vendor to guide you and your accounting team through the transition.