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Monday, August 12, 2019

Tips for Upgrading an Accounting System in the Philippines



Wazzup Pilipinas!

Philippine businesses are notorious for hanging on to very outdated practices, and this is no different when it comes to accounting systems. Accounting systems in the Philippines are by and large outdated partly due to the relatively low labor costs. For many businesses, it’s easy to justify not spending the money on a system that allows automated data entry when an employee on minimum wage or an intern can do all that for a much lower cost.

However, as the cost of labor goes up and the cost of accounting systems go down, it’s starting to get more and more difficult to justify sticking with a system where a simple report may take a week or more to generate, rather than at an instant. The need to be able to comply with BIR regulations has also led to more local businesses finally taking the plunge.

But how does one choose the best accounting system for small business? The truth is, there is probably a wide range of solutions that will work “well enough” for you in terms of reducing the workload of data entry and report generation. Where it matters is in the small details. Not all these solutions offer enough functionality for the money, and not all of them will be uniquely suited for your business.

That said, here are a few important tips for upgrading an accounting system in the Philippines.


1.) Allocate time for training

The software and the hardware are only part of the system. Your employees — the people who will be using the accounting system on a daily basis, as just as crucial a part of it as anything else, if not more so.

Make sure that there is adequate time and resources allocated to ensuring your employees are fully capable in using any system you plan to upgrade to. Without this training, a painful transition can be expected.


2.) Consider free or low-cost Accounting and ERP solutions

There are a number of free and low-cost accounting systems available for smaller micro-businesses as well. We’re not talking about Excel or Quickbooks, but full-fledged systems such as SAP Business One. They may be modular as well, allowing you to add features as your business expands without the need to retrain your employees in a new system.


3.) Make sure the vendor offers a system tailor-fit to the Philippine setting

Some solutions are simply not suited for the scenarios one might expect in the Philippines. The BIR, for example, requires several unique reports, some of which you might not be able to easily generate on software meant for use in other countries.

While virtually all accounting and ERP systems could be modified to accommodate these requirements, it can be useful and give you fewer adjustment issues if your vendor can offer you those report generation features out of the box.


4.) Take your time to find the best accounting system solution

There are a lot of different accounting systems out there. Even the ones that get the best reviews might not necessarily be the best one for your organization. Make sure to take time to narrow your choices down, and try before you buy whenever possible. Remember that you might have to use this system possibly throughout the next decade, so take the time to ensure you get the right one for your needs.

What other tips can you share? Tell us!

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