When running a business, you must diligently report and remit the correct taxes to the government to avoid costly penalties. While investing in an enterprise resource planning (ERP) system is a significant step to generating accurate financial reports, most ERPs don't inherently cater to the unique tax requirements of Filipino businesses.
 

Yondu, a Gold partner of cloud ERP provider Acumatica, is quick to develop an extended solution. Enter Digital Tax Localization, which automates Philippines tax localization within the Acumatica Cloud ERP system to address the tax compliance required by the Bureau of Internal Revenue (BIR). 

This blog discusses the Digital Tax Localization solution and its impact on seamless tax compliance in the Philippines.

What is Digital Tax Localization? 

Digital Tax Localization is an extended solution that automates business tax compliance within Acumatica Cloud ERP. Whether you're a medium to large business in the Philippines, Digital Tax Localization lets you efficiently manage your tax reporting within Acumatica Cloud ERP. From computing withholding taxes accurately per mandated tax rates to creating required reports—such as 2307, 2306, and 2550M— all in line with BIR tax regulations.

5 Helpful Features of Digital Tax Localization 

With Digital Tax Localization, you can save time, reduce stress when doing your business taxes, and ensure you're remitting the correct amount to the government. Here are additional benefits you can enjoy when you adopt this software. 

1. Seamless withholding tax processing

Digital Tax Localization automatically calculates the correct withholding tax amount when you issue invoices or payments, eliminating the need for manual calculations or separate tax processing procedures. This feature saves time and significantly reduces the potential for human error.

Automatic withholding tax processing can also help you manage cash flow. You can accurately predict the amount of funds available after deductions and facilitate better financial planning and budget management.
 

2. Simplified BIR reporting

One of the most tedious parts of tax reporting is manually filling out forms and submitting them to the BIR. Fortunately, Digital Tax Localization offers system-ready forms and templates that comply with BIR requirements. This feature simplifies relevant steps for time-efficient reporting. 

Plus, having system-ready forms and templates minimizes the administrative burden associated with tax reporting. As a result, you can focus on other tasks critical to daily operations.

Digital Tax Localization's system also enables accurate and compliant reporting. Its streamlined approach makes compiling and submitting timely tax reports to the BIR easier, reducing the risk of non-compliance, costly penalties, and audits.
 

3. Automated DAT file generator

Digital Tax Localization also covers electronic filing thanks to its DAT file generator. It caters to the requirements of Form 1604E (aka the Alphalist) and VAT Relief reports, both crucial requirements for electronic tax filing in the Philippines. The former is a report that details employee compensation, while the latter concerns value-added tax reporting. 

By providing readily available DAT files, Digital Tax Localization significantly eases the preparation and submission of the reports mentioned above. It also promotes consistency in the electronic filing process, helping you meet stringent requirements and avoid penalties and audits for non-compliance.
 

4. Easy integration with Acumatica

Adopting new software is often challenging, especially if it has no integration capabilities into existing systems. Digital Tax Localization doesn't have this problem, as it inherently aligns with the requirements of Acumatica's current cloud ERP users. 

This synergy ensures Digital Tax Localization complements the core functions of Acumatica and creates a harmonious and efficient user experience. As such, you can seamlessly transition to using Digital Tax Localization for better tax management within the Acumatica platform. 

Additionally, you don't need extensive training to utilize the system's tax compliance features. You can easily navigate and leverage Digital Tax Localization on the interface you already know, reducing the learning curve and improving overall user satisfaction.
 

5. User-friendly interface

Yondu designed Digital Tax Localization with simplicity, ensuring that digital forms are intuitive and easy to understand. The system facilitates effortless data input and minimizes the need for extensive training or specialized tax expertise.

Ultimately, the ease of using Digital Tax Localization translates into streamlined operations, reduced administrative burden, and a more efficient business tax compliance process.
 

Make Business Tax Compliance Less Complicated

Digital Tax Localization simplifies and enhances tax compliance in the Philippines in several ways. This comprehensive tax management tool shows Yondu's unwavering commitment to providing innovative ERP solutions for critical aspects of tax management. 

With its automated withholding tax calculations, simplified BIR reporting, DAT file generation, seamless integration with Acumatica, and intuitive user interface, Digital Tax Localization empowers you to file and report your taxes accurately on time. It also ensures you comply with tax rules as a responsible business entity.

Originally published on Yondu's blog