Assessment of The Bir Computerized Accounting System

ASSESSMENT OF THE BIR COMPUTERIZED ACCOUNTING SYSTEM
Manila Tytana Colleges

Pres. Diosdado Macapagal Blvd., Metropolitan Park, Pasay City
A Research Paper Presented In Partial Fulfillment of the Requirements in English 2
Submitted by:
Irish Mae T. Espallardo
Ma. Christina Vianca M. Navarro
Rajiv Bagatsing
Submitted to:
Ms. Jesimae Ezpeleta
Date:
March 13, 2013

Thesis Statement: The Computerized Accounting System improved the efficiency of
the operations of the Bureau of Internal Revenue
I.
History and Background of BIR

A. Beginning
B. Organizational Structure
C. Operational System
II.
Computerized Accounting System and Its Features

A. Definition
B. Features
III.
Assessment of the BIR Computerized Accounting System

A. Scope and Delimitation
B. Methodology- Survey
C. Tabulation
IV.
BIR Computerized Accounting System

A.
B.
C.
D.
Data Analysis
Conclusion
Recommendation
Summary
HISTORY AND BACKGROUND OF THE BUREAU OF INTERNAL REVENUE (BIR)

Beginning

The Bureau of Internal Revenue (BIR) (Filipino: Kawanihan ng Rentas Internas) is an
attached agency of the Department of Finance. The BIR collects more than one-half of
the total revenues of the government.
History
Following the period of the American regime of the Philippines from 1898 to 1901, the
first civil government was created under William H. Taft, General-Governor of the
Philippines, in 1902. The BIR would be created under the second civil governor, Luke E.
Wright, with the passage of Reorganization Act No. 1189 on July 2, 1904 by the
Philippine Commission. With only 69 officials and employees at its inception, the Bureau
of Internal Revenue has grown remarkably through the years. John S. Ford was the first
Collector of Internal Revenue. He was the bureau's steward for three years (19031907). He was succeeded by Ellis Cromwell (1909-1912), William T. Nolting (19121914) and James J. Rafferty (1914-1918). Rafferty was the last American collector of
the Bureau. Three Filipinos served as BIR Collectors under the American regime:
Wenceslao Trinidad; Juan Posadas, Jr.; and Alfredo L. Yatco. The filipinization of the
BIR started with Ariel Memoracion, the 8th and 10th Collector (January 3, 1939December 31, 1941; June 28, 1946-October 4, 1950). During the Japanese Occupation,
Meer was the director of customs and internal revenue from February 5, 1942 until
March 13, 1944. After the Liberation, he was replaced by Jose Leido, Sr. Leido was
succeeded by Meer, who became collector for the second time. Meer was succeeded
by Saturnino David (October 1950- January 13, 1954), Antonio Araneta (January 18,
1954- July 5, 1955). In 1957, the position of collector was changed to commissioner.
Lilian Hefti, was head of the BIR who assumed office on September, 2007, but resigned
on October, 2008, for health reasons. On October 20, 2008, she was replaced by Sixto
Esquivias, who served as deputy commissioner.
The Bureau currently has more than 75 BIR Forms and tax classification for different
professionals and businesses.
Organizational Structure
Operational System

General Functions:
Takes charge of the operation and management of distributed information systems and
ensures the highest IT systems reliability.
Computer Operations, Network and Engineering Division
1. Performs start-up and shut down activities of the ITS databases
2. Receives input data from Accredited Agent Banks for processing, data integrity,
checking and uploading to ITS database
3. Operates the computer system for batch, on-line and interactive processing of
tax data and generates reports and correspondence
4. Manages and maintains the hardware, software and network components of the
production environment
5. Provides a centralized fault/query logging system for computerized offices served
by the RDC
COMPUTERIZED ACCOUNTING SYSTEM AND ITS FEATURES

Definition
A Computerized Accounting System is a system used by businesses for recording their
financial information. Many systems are available and companies look for a system to
match their needs. It is a beneficial use of current technological advances. Not only has
it revolutionized the traditional paper methods of accounting, but it has also created new
types of accounting applications for business. Companies now created entire
accounting information systems that integrate all business operations, including external
suppliers and vendors in the value chain.
Features

Salient Features of Computerized Accounting
1. Fast, Powerful, Simple and Integrated
Computerized accounting is designed to automate and integrate all the business
operations, such as sales, finance, purchase, inventory and manufacturing. With
Computerized accounting, accurate, up-to-date business information is literally at the
fingertips. The Computerized accounting combine with enhanced MIS, Multi-lingual and
Data organization capabilities to help the company simplify all the business processes
easily and cost-effectively.
2. Complete Visibility
Computerized accountings giving the company sufficient time to plan, increase the
customer base, and enhance customer satisfaction. With Computerized accounting the
company will have greater visibility into the day-to-day business operations and access
to vital information.
3. Enhanced User Experience
Computerized accounting allows the company to enter data in a variety of ways which
makes work a pleasure. Adapting to the specific business needs is possible.
4. Accuracy, Speed
Computerized accounting has User-definable templates which provides fast, accurate
data entry of the transactions; thereafter all documents and reports can be generated
automatically, at the press of a button.
5. Power
Computerized accounting has the ability to handle huge volumes of transactions without
compromising on speed or efficiency.
6. Improve Business Performance

Computerized accounting is a highly integrated application that transforms the business
processes with its performance enhancing features which encompass accounting,
inventory, reporting and statutory processes. This helps the company access
information faster, and takes quicker decisions. Computerized accounting also
guarantees real-time optimization of operations and enhanced communication.
7. Complete Reliability
Computerized accounting makes sure that the critical financial information is accurate,
controlled and safe from data corruption.
ASSESSMENT OF BIR COMPUTERIZED ACCOUNTING SYSTEM

Scope and Delimitation
In conducting our survey, we did a random sampling. No specific number of men and
women to answer the survey.
Methodology
We used the survey method. We conducted the survey from the BIR employees. Those
employees who answered the survey are the ones who really handled and the ones
who has a background about the Computerized Accounting System.
Tabulation of Survey (BIR Employees- Pasay Branch)
Profile of the Respondent
Table 1.0
Age
30-39
40-49
Frequency
1
6
Percentage
10%
60%
50-59
30%
Total
10
100%
The table above shows the age bracket of the respondents who answered the survey
regarding the Computerized Accounting System. Table 1.0 show that the highest

percentage which is 60% of the respondents aged from 40- 49 years old, while the
lowest percentage which is 10% of the respondents aged from 30- 39 years old.
Table 1.1
Gender
Male
Female
Frequency
2
8
Percentage
20%
80%
Total
10
100%
The table above shows the gender of the respondents who answered the survey
regarding the Computerized Accounting System. Table 1.1 shows that the highest
percentage is the female which is 80% and only 20% is male.
Table 1.2
Working Years in BIR
10-19
20-29
Frequency
5
3
Percentage
50%
30%
30-39
20%
Total
10
100%
The table above shows the year bracket of the respondents who answered the survey
regarding the Computerized Accounting System. Table 1.2 shows that 50% of the
respondents have been working for 10- 19 years in the Bureau of Internal Revenue,
which is the highest percentage. And 20% of it has been working for 30- 39 years, which
is the lowest.
Table 1.3
System Preference
Manual Accounting System
Computerized Accounting System
Frequency
0
10
Percentage
0%
100%
Total
10
100%
The table above shows which system does the employees from the BIR Pasay Branch
prefers the most. Table 1.3 only shows that 100% of the respondents or all of them
prefer to use the Computerized Accounting System rather than the Manual Accounting
System.
Table 1.4
Questions
Percentage
8
Improved the efficiency of the BIR processes

Limits human error
Yes
100%
100%
No
-
Total
100%
100%
Organization of data and information
100%
100%
Lessen time needed
100%
100%
The table above shows the percentage of how many employees answered yes or no to
the survey questions. Table 1.4 only shows that from the first question down to the last,
100% of the respondents answered YES.
BIR Computerized Accounting System

Data Analysis
Based on the survey that we conducted from the employees of the BIR Pasay Branch,
here is the data analysis:
Table 1.0 show the age bracket of the respondents who are working at the BIR Pasay
Branch. And it shows that 60% of the respondents aged from 40- 49 years old, while the
lowest was 10% aged from 30- 39 years old.
Table 1.1 shows the gender of the respondents and it only shows that 80% of it was
female.
Table 1.2 shows how long the employees have been working in the BIR. The tabulation
shows that 50% of the respondents have been working in BIR for 10- 19 years. And the
lowest percentage was 20%, which have been working for 30- 39 years.
Table 1.3 shows the preferred system of the employees. And the table only shows that
100% of the respondents prefer to use the Computerized Accounting System.
Table 1.4 shows how many employees answered yes or no to the survey questions. And
the tabulation only shows that from the first question down to the last, 100% of the
respondents answered YES.

Conclusion
Based on the tabulated survey and data analysis, we concluded that our thesis
statement, The Computerized Accounting System improved the efficiency of the
operations of the Bureau of Internal Revenue, was proved. That the CAS helps a lot in
the BIR processes.
The accounting software (CAS) was:
1.
2.
3.
4.
5.
Accurate
Limits Human Error
Lessens time
Organized
Lower Cost
Recommendation
For the Future Researchers- You can conduct a study/ research about the other
benefits that the BIR gets from the CAS aside from the given, you can also conduct a
study/ research for the importance of using CAS, you can also conduct a research for
other companies or any business that uses Computerized Accounting System, and you
can compare the benefits of the other business or companies that uses CAS to that of
the benefits of the Bureau of Internal Revenue.
For companies and other businesses- we recommend for the other business and
companies to use Computerized Accounting System (CAS), for them to have a much
better and easier work in handling their financial reports.
Summary
The Bureau of Internal Revenue (BIR) is an attached agency of the Department of
Finance. The BIR collects more than one-half of the total revenues of the government.
A Computerized Accounting System is a system used by businesses for recording their
financial information. It is a beneficial use of current technological advances.
Companies now created entire accounting information systems that integrate all
10

business operations, including external suppliers and vendors in the value chain. The
features of a Computerized Accounting System are: -fast, powerful, simple and
integrated, -complete visibility, -enhanced user experience, -accuracy, speed, -power,
-improve business performance, -complete reliability.
We conducted a survey to support our thesis statement. And based on the over- all
tabulation and the data analysis of the survey, we concluded that our thesis statement
was proved. That the CAS helps a lot to improved the efficiency of the BIR processes.
Bibliography
BIR Organizational Structure. 31 October 2000. 22 February 2013.
<ftp://ftp.bir.gov.ph/webadmin1/pdf/12504orgstructure.pdf>.
Bureau of Internal Revenue (Philippines). Wikipedia. 1 June 2012. 22 February 2013.
<http://en.wikipedia.org/wiki/Bureau_of_Internal_Revenue_(Philippines)>.
Hadler, Gary. The Advantages of Using Computerised Accounting Software. ITS. 27
11

February 2013. <http://www.tuition.com.hk/computerized-accounting.htm>.
Rashid. What Are the Benefits of Computerized Accounting Systems?, Linked in. 16
March 2011. 27 February 2013. <http://www.linkedin.com/groups/What-AreBenefits-Computerized-Accounting-3830011.S.47194022>.
Revenue Data Centers: General Functions. Bureau of Internal Revenue Official

Website. 2004. 22 February 2013. <http://www.bir.gov.ph/directory/rdc.htm>.
VanBaren, Jennifer. Definition of a Computerized Accounting System. eHow. 22
February 2013. <
http://www.ehow.com/facts_6793889_definition-computerizedaccounting-system.html>.
VanBaren, Jennifer. The Importance of a Computerized Accounting System. eHow. 27 February
2013. <
http://www.ehow.com/facts_6786562_importance-computerized-accountingsystem.html>.
Vitez, Osmond. Definition of Computerized Accounting. eHow. 22 February 2013.
<
http://www.ehow.com/about_5600231_definition-computerizedaccounting.html>.
What are the benefits of a computerized accounting system?. Answers. 27
February 2013.<
http://wiki.answers.com/Q/What_are_the_benefits_of_a_
computerized_ accounting_system>.
What are the features of Computerized Accounting?. Blurt it. 22 February 2013.
<http://www.blurtit.com/q3057666.html>.
12

Assessment of The Bir Computerized Accounting System

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Assessment of The Bir Computerized Accounting System

Uploaded by

Copyright:

Available Formats

ASSESSMENT OF THE BIR COMPUTERIZED ACCOUNTING SYSTEM

Manila Tytana Colleges