Benefits of Cloud-Based Accounting
Posted on 2021-11-20
In today’s business setting, cloud-based accounting has become more and more relevant and popular in Fortune 500 companies and even in medium-sized entities. Data which is a crucial factor in running business operations are now sent, processed and stored in the cloud. The cloud is generally used to describe data centers available to many users over the internet. This enables maximum connectivity and one day, may allow companies to keep from maintaining its own physical servers on premise.
Even the traditional desktop-based accounting is now outpaced by a more innovative and adaptive way in processing and handling company data, the age of cloud-based accounting systems. Let us take a look at the benefits of having a cloud-based accounting system.
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Bank Reconciliation
Posted on 2021-11-20
Bank reconciliation is the process of matching the cash in bank records of an entity with the actual bank statement. Its objective is to determine the differences between transactions recorded in the accounting books versus the actual transaction and balance in the bank. In the typical business setting, it is highly unlikely that bank and book cash balances are the same at a given point in time. Thus, there is a need to regularly perform this activity.
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Cash Flow Reporting
Posted on 2021-01-19
A company’s ability to generate positive cash flows determine its ability to meet obligations and largely affects its status as a going-concern entity. While the net profit or loss performance is not enough to determine this ability, this information can be supplemented from a company’s cash flow report, thereby making it an integral part of management reporting.
The cash flow report also known as the Statement of Cash Flows, is one of the components of financial statements. Unlike the profit or loss report that measures the ab
Read MoreExpanded Withholding Tax (ETW) in the Philippines
Posted on 2020-10-16
Expanded withholding tax or “EWT” as it is commonly known in the Philippines is a kind of withholding tax on certain income payments. The Withholding of Creditable Tax at Source or simply called Expanded Withholding Tax is a tax imposed and prescribed on the items of income payable to natural or juridical persons, residing in the Philippines, by a payor-corporation/person which shall be credited against the income tax liability of the taxpayer for the taxable year (bir.gov.ph). This tax is then remitted to the Bureau of Internal Revenue (BIR).
EWT has three general characteristics;
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- It is withheld from certain income payments.
- It is creditable against the income tax due of the payee (the person to whom payment is due).
- This tax must be remitted by the withholding agent t
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Benefits of Accounting Information Systems (AIS)
Posted on 2020-10-13
In today’s business, companies have been investing heavily in computerized accounting information systems (AIS) to respond to the complexities and time-consuming procedures in the processing business transactions. An Accounting Information System is a structure that a business uses to collect, store, manage, process, retrieve, and report its financial data so it can be used by accountants, consultants, business analysts, managers, chief financial officers (CFOs), auditors, regulators, and tax agencies.
Intro to BIR Computerized Accounting System (CAS)
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 Account
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