'For companies to compete and comply with international standards and taxation standards, they will eventually need accounting software to do all of that,' said Anson Uy, president of Sagesoft Solutions Inc., the Philippines' authorized reseller of business management software provider SAGE Group PLC. PFRS compliance is required by the government and should not be taken lightly, said Uy during Sagesoft's recent release of the Sage ACCPAC ERP software.
Citing a study by Price Waterhouse Coopers, Uy said that 60 percent of Asian companies still do not know the impact of IFRS in their organization. 'We are actually evangelizing the standard and how companies can benefit from adoption of this,' he said. Uy observed that there is an abundance of nonqualified accounting software in the market. He said that several companies
Sagesoft visited in fact had 'half-baked' implementations of an accounting system.
The market still needs education, said Uy, because most companies still think that PFRS compliance just means manipulation of the balance sheet and the income statement when it entails changing their practices and having to deal with certain challenges. 'What if, say, the management is trying to keep off-balance transactions?' he said. He added that there are also companies which only have software implemented for accounts receivable (AR) or sales and neglect the payroll side or other transactions like the cost of manufacturing or cost of distribution.
Uy is optimistic and sees companies starting to migrate to compliance systems and starting to change their business processes. 'Eventually, companies will start becoming more competitive and growing their business through acquisition of software rather than probably hiring more people,' he said.
A Web-based accounting and ERP system, the Sage ACCPAC ERP is designed to cater to the needs of small to mid-sized companies. Other than seeing a huge potential in this market, Uy said that Sagesoft prefers to cater to small and mid-sized companies because they offer a fair trade. While larger companies are perceived as the ones more willing to shell out money, most of these companies also negotiate and do big bargaining so it is a double-edged sword. 'One thing is your revenue is increasing but they are squeezing you out of your profit,' said Uy. 'With SMEs, you get fair profit, fair results, and you also help them in whatever business problems they have.'
ACCPAC ERP is also compliant with the PFRS and works across all major platforms and all major databases, said Uy. Built on multi-tiered architecture, Sage ACCPAC ERP is the foundation for an integrated suite of end-to-end business management applications, including customer relationship management (CRM), human resources management (HRM), warehouse management, electronic data interchange, (EDI), point-of-sale, e-commerce, advanced reporting, and other vertical solutions.
Priced anywhere between P250,000 (US$4,624) to several million pesos, SAGE ACCPAC ERP allows companies to pay only for what they use by choosing the applications, technology, and deployment options they need most which can then be customized and enhanced as their business needs evolve.
Sagesoft has partnered with local IT solutions provider Sigmasoft Solution to provide a personal approach to customers where they look at the client's current system, evaluate what ACCPAC modules will best suit their needs, and assist up to the implementation and post-implementation consulting.
Sagesoft also recently incorporated the Sage ACCPAC Users Club, which now has 35 member companies. 'You're not just buying the software, there is the ecosystem,' said Uy, as the club meetings, held once every three months, will provide a venue for consultation among users, especially because most small companies do not want to pay for consultancy.
The Sage ACCPAC Users Club already has a roster of company officers which are to be inducted this month, with ABS-CBN Publishing Inc. as head, and the likes of Tsukiden Software Philippines Inc. and Micro Labs Ltd. serving other positions.