The Benefits of Using a BIR-accredited POS
Opening a small business can be such an undertaking, especially in small communities where traditional business owners rely on conventional methods to start and run their businesses. However, with the rapid growth of small and medium-sized businesses throughout the Philippines, with over 1.1 million total listed businesses in the country, entrepreneurs are discovering the use of computer applications to manage their retail business and operations. More common though is using point-of-sale software to manage most generic retail setups including pharmacies and small convenience or sari-sari stores.
The BIR mandates the use of POS machines and systems to promote tax compliance and business registration, but there are other benefits to consider as well that will delight every business owner wanting to sustain business growth for success and longevity. Registering to legalize income and operations helps improve operational efficiency, encourage business growth, strengthen financial credibility, and enhance customer service, and using a BIR-registered POS machine helps businesses achieve these goals. Let us take you through the benefits to rationalize why it pays to implement a BIR-compliant POS system that supports your pharmacy’s business growth.
Efficiency in processing transactions
Using a BIR-accredited system ensures efficiency in processing transactions. As you go about your daily sales, it updates and provides a real-time account of your inventory while providing reports that help make informed decisions knowing better which products to re-order or stop ordering. Likewise, when generating sales reports, businesses can analyze fast movers and slow-selling products and services delivering data useful for marketing or promoting sales.
Compliance and comprehensive reporting
Conveniently generating the necessary reports for tax audits and compliance with BIR regulations is another benefit of using BIR-accredited POS machines. While X reports aid in monitoring sales trends on a day-to-day basis, Z reading reports help close the day’s transactions, useful for bookkeeping and seeing the overall trend of your business. Reading reports helps you understand sales trends and be prepared when BIR audits your records, avoiding potential legal issues and penalties.
Accuracy and efficient bookkeeping
Relying on BIR-accredited POS software helps keep an accurate account of your financial transactions and improves cash flow management. By keeping financial records organized, the tax preparation process becomes easier, thus saving time and reducing the possibility of errors when filing tax returns. Knowing your financial records provides insights into growing new uncharted opportunities or assists in securing capital loans or financing with lenders and financial institutions. Businesses using BIR-accredited POS machines can enjoy tax incentives such as a reduction in the value-added tax (VAT) rate and income tax rate.
Secure data handling and encrypted transactions
BIR ensures POS machines and systems undergo a rigid screening process to ensure robust security features are present to protect sensitive data such as payments and customer information. Secure payment processing systems are ensured through encrypted connections, reducing the risk of data breaches and possible financial losses. With the growing users of e-wallets and digital payments, BIR ensures that systems are compliant, efficient, and safe for both the business owner and the customer.
Improved customer service and useful customer insights
Improved customer service and satisfaction is yet another benefit of using BIR-compliant POS systems. These systems are usually equipped with customer modules that help securely store customer data such as contact information, purchase history, or prescriptions in the case of a POS with a pharmacy management system or PMS. Generating reports to gain customer insights can support better patient care by following up on prescriptions and counseling. Learning about customer insights provides knowledge of customer behavior and trends that help tailor marketing and sales efforts to different customer segments.
Implementing BIR-accredited systems into your business takes responsibility but we should see more of how it empowers your enterprise and professionalizes your pharmacy practice in many ways. While BIR positions this move to promote compliance, reduce tax evasion, and promote transparency, it delivers more benefits for the long term by improving operational efficiency, boosting business and financial credibility, and enhancing customer service. POS systems integrated into PMS for pharmacy businesses are crucial tools that help streamline operations, comply with legal regulations, and improve overall financial performance.
To learn more about how Parmazip can support your pharmacy business, visit us at www.parmazip.com.
Keep growing your practice and stay compliant!
