How do you get your Accounting Software Approved by Government before it can be used? Is there any list of Approved Accounting Systems? These are the questions that I wish to address in this post.
The impression created by a number people and organisations that governments have lists of “certain “Approved Accounting Systems is to some extent wrong. There is no “FDA” like Approved Software. Here is why government takes a keen interest in the Accounting systems used in businesses.
You will agree with me that most Accounting Systems are used for invoicing and generating of tax invoices and final computation of any taxes. This is exactly where the interest of the government tax wing comes in because tax authorities have minimum requirements of an acceptable tax invoice including computer generated invoices.
The minimum requirements for any Computer system to be accepted for generating and printing tax invoices as an alternative to having a manual invoice book in most cases are as follows.
1. The system must be programmed in manner that it locks all details pertaining to invoices processed on the system immediately the invoice is printed. For example when you process an invoice and print it out, the system must not allow you to open the same processed invoice and further make changes. It should be locked into read-only and never allow reprints.
2. If the software you intend to use allows posted invoices to be edited, it should then have a provision to produce an audit trial report highlighting any additions, deletions or changes made at any given time.
3. The invoice numbers should be consecutive and increasing and should be system generated. This simply means that the numbers must be generated one after the other and in an increasing manner for example if your first invoice is 001 the next should be 002 in that order.
4. At the end of all transactions, the system must be able to produce a listing of all invoices that have been processed in the system showing all details such as invoice numbers date, description of goods/services, name of customer, vat inclusive totals and vat amounts charged.
5. The system must further have no provision whatsoever to bypass any of the minimum requirements specified.
You cannot be given any clearance to use the accounting system for tax purposes if it does not meet these requirements. That is why some people think any system cleared before is the only “approved” system which I said is a bit incorrect.
Here is how you can get your Software easily “approved” if you intend to use a different Accounting System from the ones commonly used. Get an expert to evaluate the System you want to purchase and determine whether it meets these minimum requirements. Get exact details of how these requirements are programmed in the System in order to explain to any authorities. Then you will have no problem getting your System cleared.
If you found this article helpful please feel free to leave your comment.
About the Author:
Fixed Asset Consultant at Prosperity Agencies Limited with over 10 years practical experience in physical verification, bar-coding of assets and fixed asset software implementation +260 211 239859
Let's Get Connected: Linkedin | Facebook | Google Plus
Post a Comment