Many components make up a business. For it to run like a well-oiled machine, it requires a reliable, scalable system for payroll and accounting. These may be easy if you have very few employees to manage or you operate domestically. This way, you’re familiar with business-related laws such as accounting, taxation, and labour.
But unless you have no reason to grow your business (which may sound counter-intuitive), you will soon hire more people or expand to other countries such as Indonesia. In the process, administrative tasks like accounting and payroll become more complicated.
If you want to avoid the complexity, the most practical solution is to outsource these processes. Here are some of the best reasons:
1. Compliance with Indonesian Regulations
Indonesia’s regulations on labour, accounting, auditing, and tax reporting are not easy to understand by foreign companies. It’s not surprising considering they tend to change over time. Moreover, they involve many formulas. Calculating overtime pay alone can differ per every overtime hour. Minimum wages, meanwhile, can change depending on the GDP growth rate and inflation. The country uses a progressive rate, but there are exemptions. If the employee earns no more than IDR 54 million (~$4,000) they are exempt from the income tax rates.
While you can always take time to learn, your lack of deep familiarity can put your business in serious jeopardy. At the very least, you will pay fines for late tax reporting. At worst, you may spend some time in jail, have your business license revoked, or your company registration cancelled.
The importance of complying with Indonesian laws is the topmost reason you should consider payroll processing outsourcing in Indonesia. Cekindo has top-notch business consultants and work closely with certified accountants and tax specialists with expert knowledge and years of experience in their fields.
We also have our payroll experts who can take care of every detail pertaining to salaries, including mandatory social security and healthcare contributions, overtime, pension plan, and individual tax returns.
2. Cost Savings
Accounting and payroll outsourcing saves you money in many ways. One, you can now avoid spending cash on hiring and training. In fact, you don’t have to think about employees at all. That responsibility already lies on us. It is our job to ensure only a professional handles the tasks and that there’s always a person who can do the job at any given time.
You also don’t need to spend on costly accounting and payroll software. There’s no need to rent a bigger office for your team either. (And if you want to save more on rent, check out our serviced and virtual offices in Jakarta and Bali.
3. Better Management
One of the biggest mistakes entrepreneurs, especially start-ups, make is spreading themselves too thin. With so many tasks to take care of, they easily feel the burnout and become less efficient and productive.
Pareto principle suggests 80 percent of the best outcome usually comes from 20 percent effort. Simply put, running your business well is about doing the things that matter the most, and these don’t include routine tasks, which others can do for you.
Outsourcing Made Easy
Outsourcing your payroll and accounting in Indonesia should not be complicated. Cekindo guarantees fast, convenient, reliable, and transparent PEO outsourcing services for your company.
No hassle and huge savings – these are Cekindo’s commitment. Call us today at +6221 806 60999 and let’s talk.
Leave a Reply