Accounting outsourcing in Indonesia has become a very common approach for both local and foreign companies.
Business owners prefer outsourced bookkeepers and accountants due to its cost-effectiveness, scalability, affordability, and risk mitigation.
Before you want to let a professional handle your accounting, you must know the difference between an accountant and a bookkeeper – so that you will know what you need.
Both accounting and bookkeeping are necessary to ensure seamless business operations and compliance in Indonesia.
But there are some differences between them.
Bookkeeping is a systematic process of recording and keeping financial transactions and data in a company.
A bookkeeper is often an administrative employee of the company and organises the financial records on a day-to-day basis.
They ensure that financial records are up-to-date, comprehensive, and correct. A bookkeeper does not have the authority to give any financial advice or decision for the company.
In Indonesia, a university degree is not compulsory for becoming a bookkeeper. However, it is often necessary for them to have relevant certificates and knowledge in bookkeeping or accounting.
Accounting is the process of analysing financial data and transactions that a bookkeeper records.
With the results of the analysis, an accountant will then advise the management or business owner to aid them in tax matters and make business decisions.
An accountant’s advice is critical for businesses to avoid risks and increase financial value.
Therefore, many companies often outsource their accounting to a certified accountant to gain access to expertise.
It is also very common that accountants are hired on a contractual basis, especially in advance of the end of the financial year, or a specific growth phase of a company.
Accountants are professionals with university qualifications. In general, they have an undergraduate degree in accounting. In their further studies, they would also acquire Chartered Accountants (CA) and Certified Practising Accountants (CPA).
Accountants have a broad range of skills and expertise; they may also specialise in certain fields, industries, or business types over the year depending on the nature of the accounting they are involved in.
While you may think that accounting outsourcing may not be necessary for your business, having an in-house accounting team can often cost more and provide less desirable results.
Below we outline a few reasons:
1. High Training Cost and Overhead
Building an internal accounting team is less cost-effective than partnering with a provider of accounting outsourcing in Indonesia.
When hiring a full-time employee, you need to consider the overhead and onboarding costs. For example, training, health insurance, monthly salary, benefits, sick days, and vacation leaves.
2. High Recruitment Cost
Doing accounting internally means you have to pay a full-time salary to your employee monthly.
Also, you may not find the right person to do this highly specialised job and all money and time invested in this employee will go to waste.
Considering this unexpected hefty costs of forming an in-house accounting team, the ideal solution is to outsource both accountants and bookkeepers. When you outsource your accounting, you do not need to hire any full-time employees.
Thus, you have the advantage to scale your business any time and reduce costs for recruitment and hiring of permanent and temporary staff.
Cekindo provides a wide selection of services in accounting outsourcing in Indonesia. We have both professional and experienced accountants and bookkeepers who can address the accounting needs of your business.
The routine tasks of accounting and bookkeeping will eventually take away your attention from your primary business activities. And without the lack of expertise, legal complications may arise.
So, if you are finding it difficult to handle your business and accounting and bookkeeping at the same time, it is time for you to speak to a professional.
Get rid of all late fees and receive better financial results at a much-reduced rate with Cekindo today. Complete the form below.