Record Your Finances in a Step-by-step Fashion
No matter what the size of your Indonesia business, your accounting records are vital in Indonesia. That is why it is important to set up an accounting system in Indonesia that makes this process much easier.
Why Setup an Accounting System in Indonesia
It is the best way to keep a record of all your business transactions in a step-by-step manner. When setting up properly, your accounting system lets you track, summarise, classify, publish and assess your financial performance. A true and accurate representation of your finances is important for making important business decisions.
Accounting standards in Indonesia are regulated by the Indonesian Financial Accounting Standards Board (IFAS). Other accounting regulation bodies include Bank Indonesia and OJK.
Every business, especially the small ones, should consider automating their accounting process. Hence the need to set up an accounting system in Indonesia. For tax purposes, foreign investment companies in Indonesia must prepare their statements in English. They are also required to use the US dollar as their bookkeeping currency. Certain entities with foreign affiliations and permanent establishments will need to follow the same procedure. These must be approved by the Ministry of Finance.
Preparing Your Accounts
Every transaction and expenditure should be recorded as per the Indonesia requirements. Your financial accounts must be published on an annual basis. You should keep all your documents like bills, bank statements, government documents, and receipts for record purposes. Hiring a professional accountancy team like 3E Accounting ensures this process is done in a meticulous manner. Nothing will be left out and everything will be per the compliance requirements.
Indonesian law requires that your statements have at least one of the following:
- Variation of your consistent capital (excludes reserve accounts)
- Cash flow sheet
You will also need to provide statements of your activity during the financial year. This includes statements of your liabilities and any intermediate balance you have. All annual reports must be prepared per the accounting principles in Indonesia. The professional accounting bodies in Indonesia are:
- Indonesian Accounting Society
- Indonesian Institute of Accountants
Contact Us for Your Accounting System Setup in Indonesia
Don’t become one of those businesses that forget, overlooks, and neglects your accounts. Let us take care of it for you so you don’t have to worry. When you let us take care of your accounting books, you know everything will be set up properly right from the start. It’s a small investment to make for your peace of mind. For more information about our services to help you Setup an Accounting System in Indonesia, contact us for more information.