3 Quick and Easy Steps in applying for BIR Computerized Accounting System or CAS

Published February 28, 2019

What is a Computerized Accounting System (CAS)?

As per Bureau of Internal Revenue (BIR) website, CAS refers to the integration of different component systems to produce computerized books of accounts and computer-generated accounting records and documents.

There are 3 Quick and Easy Steps in applying for BIR Computerized Accounting System or CAS!

Step 1. Choose the right Accounting Software for your Business. It will be less hassle if you will pick the right Accounting System. There are software companies in Philippines that provide a BIR Ready Accounting System that has complete BIR Forms and Reports Requirements.

Step 2. Complete your Documents. Prepare your Documentary Requirements and be ready with your BIR Form 1900 or Application for Authority to Adopt Computerized Accounting System (CAS) 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). The requirements are as follows:

A. Initial Application to Adopt CAS

  • Accomplished BIR Form 1900

Company Profile:

  • Photocopy of BIR Certificate of Registration
  • Photocopy of Previously Issued Permit, if applicable
  • Photocopy of Current Registration Fee Payment
  • Location map of the place of business
  • Inventory of previously approved unused Invoices and receipts, if applicable
  • List of branches that will use CAS, if any

Technical Requirements:

  • Application Name and Software Used (Development & Database)
  • Functions and Features of the application
  • System Flow/s
  • Process Flow
  • Back-up Procedure, Disaster and Recovery Plan
  • Sworn Statement and Proof of System Ownership
  • List of Reports and Correspondences that can be generated from the system with their description, purpose and sample layout
  • Facsimile of System Generated Loose-leaf Books of Accounts and List thereof/Receipts/Invoices
  • Additional requirements in case of affiliated companies/sister companies, franchisees and branches:
  • Photocopy of previously issued permit for mother/sister company or another branch using the same system, if applicable
  • Certification from the Computerized System Evaluation Team (CSET), which previously evaluated the approve system

Step 3. File your Documents. Make sure that all your Documentary and Technical Requirements are clear and complete. There are software companies in Philippines  that gives BIR CAS Application assistance, from technical requirements application to face-to-face meetings with the BIR personnel. Application for permit to use CAS whether by the Head Office or branches, shall be filed at the RDO /LTAD I or II/LTDO having jurisdiction over the Head Office (HO) of the taxpayer, except in the following cases:

  1. The branch adopts CAS ahead of the HO – the application shall be filed by the Branch with the RDO having jurisdiction over the Branch with a certification that the HO does not use CAS. In the event that the HO later adopts the same CAS and the branch with the previously issued permit shall be linked to it, the permit to be issued to the HO shall include a new permit for the said Branch, which shall supersede the previously issued permit.
  2. The Branch adopts a different CAS from that of its HO – it shall apply for permit to adopt CAS at the BIR office having jurisdiction over the Branch.

The Permit for CAS shall be issued after a demonstration of the applied system has been evaluated and recommended for approval by the CSET.

Meanwhile, in case there will be System Enhancement/Modification on the Previously Approved CAS, the following documents must be submitted by the Head Office or branches, at RDO /LTAD I or II/LTDO having jurisdiction over the Head Office (HO) of the taxpayer.

B. Application For System Enhancement/Modification

  • Photocopy of the previously issued Permit to Adopt CAS or Components Thereof; and
  • Letter to the BIR detailing the enhancement/modification to be made on the previously approved CAS or Components Thereof

Moreover, the company must be aware that application for authority to use CAS must be filed before the system is used.

Now, once your CAS application has been filed, you’re now closer to jumpstart your business as a BIR Compliant company! Good luck!

Source: (https://www.bir.gov.ph/index.php/registration-requirements/secondary-registration/application-for-authority-to-use-computerized-accounting-systems.html#faqs)