ARTIFICIAL intelligence (AI) is steadily transforming accounting and legal practice, automating routine tasks and prompting firms to upskill staff, a senior partner at Camara, Custodio & Co. said.
CPA lawyer Mark Darwin Camara said AI is now efficient enough to handle basic bookkeeping functions such as recording transactions and encoding data — tasks previously assigned to dedicated encoders within accounting firms.
“Before, we had three encoders per team. Now, sometimes one encoder is enough because AI can already assist with basic recording and data input,” he said. “That allows our CPAs and senior associates to focus on more complex analysis and advisory work.”
He noted that as AI tools become more sophisticated, they could eventually interpret Philippine tax rules and further streamline compliance processes. However, he stressed that professionals should adapt rather than resist the technology.
“You should not avoid it. You have to learn how to use AI in your practice,” Camara said, adding that automation improves efficiency and enhances competitiveness for both accounting and law firms.
Expansion in Cebu, services
Camara and fellow senior partner CPA lawyer Niersen Custodio recently brought the Manila-based Camara, Custodio & Co. to Cebu by opening an office along Don Mariano Cui Street in Fuente Osmeña, Cebu City.
The expansion comes as Central Visayas continues to post a strong economic performance, with Cebu contributing a significant share of regional output. Growth has been driven by infrastructure development, renewable energy investments, tourism recovery, manufacturing, information technology-business process management, logistics and shipbuilding.
Camara said the firm operates under an integrated model that brings together certified public accountants and lawyers on a single professional platform — a structure designed to help businesses navigate increasingly complex tax, regulatory and compliance environments.
He said the Cebu expansion is intended to support enterprises scaling up amid the province’s economic momentum, particularly small and medium enterprises (SMEs) that require structured financial reporting systems, tax compliance guidance and legal advisory services as they formalize and grow.
By combining audit, tax advisory, litigation support and corporate finance under one coordinated structure, the firm provides end-to-end services covering tax compliance and audit defense, representation before the Court of Tax Appeals, forensic accounting and fraud investigation, estate valuation and settlement support, corporate finance advisory and transaction valuation, and regulatory and commercial law compliance.
The firm also holds accreditations from the Board of Accountancy for public practice, the Cooperative Development Authority, and the National Electrification Administration, allowing it to serve specialized institutions such as electric cooperatives alongside private enterprises.
The expansion also comes as businesses adjust to evolving Bureau of Internal Revenue audit guidelines and enhanced transparency measures, including revised procedures for Letters of Authority and system-assisted audit selection processes.
Compliance challenges for SMEs
Despite improvements in technology, Camara said tax compliance remains a challenge for some SMEs, often due to systemic and documentation issues rather than deliberate evasion.
Out of 100 taxpayers, he said, the majority aim to comply, with only a minority intentionally trying to underdeclare income. However, complications arise when businesses source materials from unregistered suppliers or fail to secure proper documentation.
“If a business buys goods worth P100,000 from a supplier without proper registration or invoicing, it becomes difficult to declare the full cost for tax purposes,” he explained. “That affects how income and expenses are reported.”
He also pointed out that in some smaller cities and provinces, businesses still operate without business permits or Bureau of Internal Revenue registration, creating compliance gaps.
Camara described the Philippine tax code as “very complex,” noting that it largely mirrors the U.S. system and requires both accounting and legal expertise to fully interpret.
“It takes a CPA and even a lawyer to understand the full implications of regulations,” he said. “Not all SMEs can afford that.”
To address cost concerns, Camara said their firm offers fixed monthly retainers instead of billing by the hour, making professional services more accessible to SMEs and even to individual professionals.
Since launching its legal practice in 2013, the firm has grown to serve more than 100 SME clients. Camara said the company is exploring expansion into other developing cities with increasing business activity.
“We’re looking at the next cities that are starting to see a lot of businesses,” he said, signaling continued growth plans in the region. / KOC