The Advent of Automatic Bookkeeping System and its Activation Plan
Asian Tax Journal Vol. 14 No. 6 (2013), pp. 9-37
Abstract
The advancement of information technology and dissemination of computer has brought a considerable change to the tax accounting market. Tax accounting has developed from bookkeeping and filling tax forms with hands using documentary evidence made of paper to entering data into a computer and filling tax forms with tax accounting program. Furthermore, automatic bookkeeping system which enables people to enter data and do the books automatically with the help of computer and tax accounting program has appeared in many different forms on the market. Businessman does his own books and uses it for the purpose of managing his own business. In spite of the existence of this book, tax agents office does another book for the purpose of tax report with the same transaction evidence inefficiently, and in some cases these two books do not match up and lead to confusion. This inefficiency has not only increased tax payment cooperation cost of businessman but also put tax agents service as a simple bookkeeping and tax report procuration. But with the advancement of program, delivery of transaction evidence and bookkeeping has been automated, which has changed the paradigm of tax accounting service. Automatic bookkeeping system which businessman does his own books with the computer automatically and share it with the tax agents, saves the labor and time which are required for the tax agents to make additional tax reporting books. These cost－saving benefits will be divided between the businessman and tax agents according to the level of contribution. This will serve as a momentum which will save the tax payment cooperation cost of businessman and will force the tax agents to make a new leap forward on his tax service. Saving of the tax payment cooperation cost of businessman will promote his taxation faithfulness and the tax agents will serve various tax services from the simple tax report procuration. To obtain this results, the government should simplify the accounting․taxation standards first. Specially, the small scale enterprise need a simple accounting․taxation standards which are accessible and easy to understand because the reason to do the books is mainly for the tax reports not for the business management information. Secondly, to promote using the automatic bookkeeping system, the government should expand the electronic evidence project such as electronic tax invoice etc. and boost certified e－document authority project which will lead to paperless office environment.
Keywords
- automatic bookkeeping system
- tax payment cooperation cost
- electronic evidence