April 11, 2024 | Blog

Compliance is essential for a company to continue its business. One of the most tedious and mandatory requirements for any organization to officially do actual business is tax compliance. That’s why your business’ finance department should consist of in-depth and knowledgeable individuals with expertise in finance, accounting, and, most significantly, tax compliance for governmental requirements.

In the Philippines, the Bureau of Internal Revenue (BIR), requires businesses categorized as large taxpayers to comply with the BIR Computerized Accounting System (BIR CAS), which allows companies to pay and file their taxes straightforwardly. In other ASEAN countries, the International Tax Review (ITR) shared that Indonesia embraces digitization where “the tax system will not only improve tax administration but also the tax policy-making process.” 

Also read: A Guide For Your BIR CAS Application

Malaysia, made e-filing mandatory for corporate taxpayers, resulting in 97% of individual tax returns being filed electronically. Singapore, one of the most digitally advanced countries in Southeast Asia, has implemented new technologies to manage tax systems better and guide taxpayers effectively.

All of these countries have one thing in common: they value compliance. With over 20 years of expertise, IT Group, Inc. (ITG). has been the leading IT Solutions Partner in the Philippines and the ASEAN region. With our technological partner, Oracle NetSuite, we will share the steps and considerations for choosing the right accounting software for your business because it is a critical decision that can impact your financial management, efficiency, and overall success. Here are the steps and considerations to help you select the best accounting software for your specific needs.

1. Define Your Business Needs and Goals

The first step is defining and aligning your needs with your goals. Asses your business if you are a small, medium, or enterprise-level company, as accounting software are more suitable for expanding companies and large organizations. It’s equally essential to know what industry your business belongs to while assessing, as it will help check the accounting software fits your industry’s needs and requirements.

Also read: World Data Privacy and the Importance of Securing Your Data Part I 

For example, if you are in retail, manufacturing, or distribution business, accounting software like NetSuite Cloud ERP can do perfectly for your company as it can optimize your accounting processes and streamline your business operations in one comprehensive tool. Moreover, always check the list of accounting requirements for your organization, including features you will need for compliance, like invoicing or e-invoicing, expense tracking, payroll, and inventory management, to name a few. Ultimately, if you already have features in mind that you would like to have in your accounting software to improve your business methods, it is better to list them.

Also read: World Data Privacy and the Importance of Securing Your Data Part II  

It may include real-time and accurate data reporting for your inventory, financial management, and data privacy and security that protects your company’s overall data and information. In addition, make sure to know and plan your budget, as investing in accounting software requires strategic budget planning that might include initial setup costs, subscription fees, and potential training expenses.

2. Do Your Research, Review, and Connect with the Tech Experts

• Do Your Research 

  The most crucial part of planning is research. Effective planning comes from strategic and intentional research. If you’re eyeing accounting software that fits your business needs, designate a dedicated team first. They’ll be your POCs to help you filter and choose the right business provider for the accounting software that you’ll need. When doing your business research, list all your accounting opportunities and challenges and create a checklist of core accounting features you’ll need. From that point, you’ll get what to look after, what to prioritize, and what is nice to have as an additional unique feature for your business.

• Review Your Top Picks 

  After researching your top picks, review all of them accordingly. Investing in accounting software aims to make your accounting processes effective, cost-efficient, and compliant with tax regulatory requirements. Remember, does it have core accounting functions and can optimize your processes such as general ledger, accounts payable and receivable, bank reconciliation, and financial reporting, to name a few? If so, is it easy for your team to use, accessible enough for other departments, and helps to automate routine tasks like invoice generation, payment reminders, and expense categorization? Lastly, can it integrate with your existing and other software?
  

•  Meet with Tech Experts

  These are some of the most critical questions you need to ask when choosing the right accounting software for your business, but it doesn’t stop there. Research and review become more reliable when you talk and connect with the industry and tech experts. For over 20 years, IT Group, Inc. has been the leading IT Solution Partner in the Philippines and ASEAN region, helping clients across the area with their digital transformation. ITG has some of the best tech experts in the industry and partnered with the #1 cloud ERP, Oracle NetSuite. With our expertise, you can meet our experts and learn about the best options for your business needs. The importance of having tech experts by your side is having a reliable source of information not only with the product, like accounting software but also with other technologies that can help your business processes to improve.

3. Check for Data Migration, Data Protection and Security

Sometimes, businesses need to pay more attention to the importance of actual migration. They only think about the efficiency of automation without considering the importance of the safety and security of your business data when migrating from one software to another. When choosing the right accounting software, you should determine how easy it is to migrate your financial data to the new software. A seamless migration process is essential to minimize disruptions. Also, you must be able to check how your software provider can provide the utmost when it comes to data security and protection, not only industry-standard security protocols like data encryption and regular security updates but, more so, a security that is tailored to fit your accounting needs. In addition to having security features, your accounting software is doing proper backup.

Also read: ‘Backup Plan’:Why Doing Backup is Important in Your Business

Oracle NetSuite, one of ITG’s technological partners, offers the #1 Cloud ERP solution, shared the importance of doing a backup and incorporating a solution like NetSuite Cloud ERP, which will benefit your business the most, especially regarding accounting processes and finance operations.
During the ITG’s Negros Business Leaders Forum event last year, Rubie Grace Villamor, ITG’s Head of Business Management Solutions, shared the importance of compliance toward sustainable business. “The shift towards a sustainability mindset has been revolutionary and is changing the business and investment landscape,” she said. “A sustainable business is a compliant and profitable business. It’s the way to the future and our way to stay competitive and relevant.”

Also read:  World Data Privacy and the Importance of Securing Your Data Part III 

It shows that when you have accurate, secure, and reliable data from trusted accounting software that also performs automated backups, it is easy to make data-driven decisions and be a compliant business, giving your company better visibility and transparency in your company’s finances.

4. Validate Credibility, Compliance, and Regulations

Aside from the features you are looking for in accounting software, it is a must to know the provider because, more than the product they sell, it is the credibility and reputation of the solution partner you trust. To check their reputation, go after their awards, achievements, years of expertise, and their pool of networks. If you want to know if they live up to their reputation and can fulfill your expectations as a potential business partner or client, check with their past and present clients, hear their success stories, and carefully review their experiences yourself.

Also read: Start Your DX Journey with ITG, the Experts in NetSuite ERP Implementation

Read user reviews and testimonials to gain insights into other businesses’ experiences. Alternatively, you can request references from the software provider to speak with existing customers about their satisfaction and challenges. It is one of the best holistic approaches to see whether the product is equally great with their overall services.  

Also read: GRB Achieves Real Time Visibility and Improved Service Delivery with ITG & Oracle NetSuite

Suppose you have a holistic approach to checking their credibility. In that case, you should also take into account a comprehensive one, which includes validating their credentials, certifications, and affiliations, and even checking their compliance, whether or not they are allowed and certified to operate and assist companies with their governmental requirements, like the BIR CAS in the Philippines or the E-invoicing in Singapore, for example. The good thing is that ITG and Oracle NetSuite are here to assist you in your digital transformation journey, help you stay compliant, and improve your overall financial and accounting processes through data security, operational efficiency, and financial visibility.  

5. Involve Key People in Decision Making  

Choosing the right accounting software will always be a huge decision for any company. One, because it’s a significant investment. Two, it can make or break the whole accounting process and majorly affect the company’s overall finance management. And three, it’s crucial because without proper steps and considerations, especially with the right partners to consult with, your company may end up with millions of government penalties occurring over time, and in the long run; worst, your company may end up in a lawsuit against with for not complying. 

Also read: Accounting 101: Manual Vs Computerized Accounting 

Decision makers look after three significant things: budget, reputation, and the quality of products and services that fit their business needs. It may include reviewing the subscription terms, including contract duration, renewal options, and hidden costs like add-on features and additional user licenses. To evaluate the top contenders based on your criteria and prioritize the software that best aligns with your business needs, budget, and goal, you should involve key people who will be affected by this decision, including relevant team members, such as accountants, finance professionals, and IT personnel in the decision-making process.

The right accounting software requires careful consideration of your business’s unique requirements and long-term objectives. Take the time to research, compare, and test potential options to ensure that the software you select is the best fit for your organization.

ITG has been the leading IT Solution Partner in the Philippines and the ASEAN region. ITG is your leading technology partner for system-wide innovative solutions to accelerate your business plans and goals, delivering seamless integrations and processes, from Business Management Solutions, IT Management, Integration & Automation, and Enterprise Data Management to IT Infrastructure. We are also an ISO 9001:2015 Certified company with regional offices located in Indonesia, Singapore, and Malaysia, helping 200+ clients across the region on their digital transformation journey, along with our technological partners, gaining a solid portfolio of 250+ successful projects.