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How to Get Your Computerized Accounting System Accredited by the BIR: A Step-by-Step Guide

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Computerized Accounting System (CAS) is essential for businesses looking to streamline financial processes, enhance reporting accuracy, and comply with tax regulations. In the Philippines, businesses using a CAS must secure accreditation from the Bureau of Internal Revenue (BIR) to ensure their system meets regulatory requirements. This step-by-step guide will walk you through the process of getting your CAS accredited by the BIR.


Why Do You Need BIR Accreditation for CAS?

BIR accreditation is mandatory for businesses using a CAS to:

  • Comply with BIR regulations on financial record-keeping and tax reporting.

  • Avoid penalties for using an unregistered or non-compliant accounting system.

  • Establish credibility and maintain transparency in financial audits.

Without proper accreditation, businesses may face fines, additional scrutiny, or delays during BIR audits.


Step-by-Step Guide to BIR CAS Accreditation

Step 1: Understand the BIR Requirements

Before starting the accreditation process, familiarize yourself with the BIR requirements. These typically include:

  • Letter of Intent addressed to your Revenue District Office (RDO).

  • A completed BIR Form 1900 (Application for Authority to Use Computerized Accounting System).

  • Supporting documents such as system flowcharts, sample reports, and technical specifications (details covered in the next section).

Step 2: Prepare the Necessary Documents

Gather the following documents to ensure a smooth application process:

1. Letter of Intent

Write a formal letter to the BIR expressing your intent to apply for CAS accreditation. Address this letter to your RDO and include the following details:

  • Business name and Tax Identification Number (TIN)

  • Brief description of your CAS

  • Contact details

2. BIR Form 1900

Complete BIR Form 1900 accurately. This form is the official application for CAS accreditation.

3. System Demonstration Documents

Prepare the following:

  • System flowchart: A visual representation of your CAS process.

  • Features and functionalities: Highlight the key features of your CAS, including reporting capabilities and data security measures.

  • Data backup and recovery process: Explain how your CAS safeguards financial data.

4. Sample Reports

Provide sample printouts of reports generated by your CAS, such as:

  • Sales Invoices

  • Official Receipts

  • General Journal and Ledger

  • VAT and Withholding Tax Returns

5. Notarized Sworn Statement

Submit a notarized sworn statement signed by the business owner or an authorized representative. This document confirms that your CAS complies with BIR standards and can generate required tax reports.

6. Technical Specifications

Include the following:

  • Hardware and software requirements of your CAS

  • Database structure and security features

7. Certification from Software Vendor (if applicable)

If your CAS was developed by a third-party vendor, include a certification from the vendor confirming compliance with BIR requirements.

8. Company Profile

Submit a profile that includes your business name, address, TIN, and the nature of your business.

Step 3: Submit Your Application to the RDO

Once you have all the necessary documents, file your application with the Revenue District Office (RDO) where your business is registered. Be sure to:

  • Double-check all forms and attachments for completeness and accuracy.

  • Submit the required number of copies as instructed by your RDO.

Step 4: Attend the System Demonstration

The BIR may require a live demonstration of your CAS. During this demo, be prepared to:

  • Showcase how your system processes transactions and generates tax-related reports.

  • Explain how your CAS complies with BIR regulations, particularly in record-keeping and reporting.

Step 5: Wait for Approval

The BIR will review your application and evaluate your CAS. Approval timelines vary depending on the RDO and the complexity of your system. Follow up with your RDO if necessary.

Step 6: Receive Your Certificate of Accreditation

Upon approval, the BIR will issue a Certificate of Accreditation for your CAS. This certificate must be displayed and available for inspection during audits.


Tips for a Successful CAS Accreditation

  1. Consult with Experts

    • Work with tax consultants or accounting professionals who are familiar with BIR CAS accreditation requirements.

  2. Choose a BIR-Compliant System

    • Invest in a CAS that already meets BIR standards to simplify the accreditation process.

  3. Prepare for the System Demo

    • Ensure your team is well-trained to demonstrate the system effectively.

  4. Keep Documents Organized

    • Organize your application documents neatly to avoid delays.

  5. Stay Updated on Regulations

    • Regularly check for updates on BIR rules and memos related to CAS accreditation.


Common Mistakes to Avoid

  1. Incomplete Documentation

    • Double-check all forms and attachments before submission.

  2. Non-Compliant Software

    • Ensure your CAS complies with BIR requirements before applying.

  3. Failure to Prepare for Demonstration

    • Poor preparation for the system demo can lead to application rejection.

  4. Delays in Submission

    • File your application well before deadlines to account for processing time.


Securing BIR accreditation for your Computerized Accounting System is a critical step toward compliance and operational efficiency. By following this step-by-step guide and preparing all necessary documents, your business can successfully navigate the process and avoid penalties for non-compliance.


For assistance in preparing your CAS for accreditation or choosing the right system, you may get in touch with us for free consultation session.


How to Get Your Computerized Accounting System Accredited by the BIR

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