Doing Business in Indonesia: Accounting Tips for Indonesian Startups
There are some fundamentals of business that you need to attend to even you’re just a startup. These include People, Operations, Strategy, Finance, Marketing, and Accounting. Among them, we are going to talk about accounting. After all, the role that accounting plays in business can’t be discounted as it determines the performance of the company whether if it’s earning or not. Having fundamental knowledge of this matter is an advantage on your part. Here are some Accounting Tips for Indonesian Startups or any other company just starting.
Equip Yourself with Some Knowledge of the Laws
Learn as much as you can about laws that affect business. Different countries have their own system of taxation. You must understand as much as you can. Above everything else, you must know the deadline for your tax filing, and the requirements to process it. You would also want to know how it’s computed, and how much would be your penalty just in case you’re late for submission.
Personal Expenses Must Be Separated from Business
This is among the most essential Accounting Tips for Indonesian Startups. Just like you don’t want to mix your personal issues with work, you don’t want to mix your personal money with your business. Open a separate bank account for your personal use and another one for your company.
Monitor Your Expenses
It’s hard to distinguish between your personal and business expenses if you don’t have a way of doing that. A simple hack is to have two wallets – one for your personal and another for your business. If you go out for a business meeting, use your business wallet and put in there whatever change and receipt you have. If on the other hand, if it’s personal, use your personal wallet.
Of course, you can get a credit card for your business where its transactions can be traced and be written down. It’s a better option, especially if you’re technologically savvy.
Subscribe to Cloud-based Accounting Software
Not good in Accounting? No problem. You can simply subscribe to Online Accounting Services to accommodate some of your accounting needs. There are two known leaders when it comes to Cloud Accounting. They are Quickbooks and Xero. Take time to research before deciding the one you want to go for.
With Cloud Accounting, you can track every detail of your expenses and even create a payroll for your employees.
Hire a Professional Accountant
Even if you already have a Cloud Accounting Software, it’s still got some limitations. It can’t give you business advice on how to lessen your tax, how much you can spend with your advertisement, and how to predict your financial performance within the next 5 or 10 years.
Hiring an Accountant for a few hours on a weekly or monthly basis is beneficial for your business. His signature gives authority to Accounting Papers you’re issuing.
Manage your Inventory Records
The next among our accounting tips for startups is managing an inventory record.
You can purchase a separate Inventory Software to track your inventories. Some theft can be avoided if you have a good system for this one.
Track the Salaries of Your Employees
Some startups work with limited capital and manpower. Not being able to track your employees’ salaries – their overtime and tardiness can affect your cash flow which you don’t want to happen.
Just like we’ve already explained previously, this can be done effectively with Cloud Accounting Softwares.
Increase your Bank Savings
You should always prepare your business for worst-case scenarios. A calamity or a sudden huge demand for your products and services may come. What are you going to do if this happens? Of course, you can apply for business loans but wouldn’t it be better if you always have a good amount of savings in your bank? Not only it gives you an edge but also renders you with a good cash flow.
Personally Talk to Your Late Payers
Although you’re thankful for your customers for patronizing your products and services, business is business. Every day you spend on your company’s operation, and money circulates. If your customers don’t pay you at the right time, it will affect your cash flow which can hurt your business. Talking to them personally reminds them of their obligations and also proves that you’re seriously doing your job.
Set your Future Goals
Knowing your progress on a monthly, quarterly, or annual basis not only motivates you but also gives you information about the direction of your business. If you’re aiming for 5 store outlets in a year, how much money have you already earned to fund those constructions? The Accounting data would tell if you’re reaching your goals.
Do You Need More Accounting Tips for Indonesian Startups?
If you need further Accounting Tips for Indonesian Startups, We at 3E Accounting would like to help. We’re among those known Accounting Specialists in Indonesia that can offer quality Accounting and Bookkeeping Services for your company.
We can’t wait to serve you. Contact Us today and let’s take your business to the next level.