What are the Benefits of Outsourcing your Accounting Functions?
Through outsourcing, especially if the accountants are from their home country, there are benefits such as language barrier and familiarity with local regulations.
Consultants from the local firms would be able to advise on the best type of tax incentives and exemptions offered, for example:
|Discount ||Eligibility |
|Public Company Discount ||Eligible public companies are entitled to a tax discount of 3% off the standard rate of 22% for fiscal year 2020/21 or 20% for fiscal year 2022, thus providing an effective tax rate of 19% for the fiscal year 2020/21 and 17% for fiscal year 2022 onwards. |
|Small Company Discount ||Eligible small enterprises are entitled to a 50% tax discount of the standard rate which is imposed proportionally on taxable income on the part of gross turnover up to IDR 4.8billion. For enterprises with a gross turnover less than that are subject to final income tax at 0.5% of turnover. |
Although it is seen as an unnecessary burden on the expenditure of the company, outsourcing gives the company an advantage above others as it allows the company to be up to date with data and knowledge.
Here are 10 Benefits of outsourcing your accounting functions in Indonesia:
1. Cost Saving
When you outsource your accounting functions, you save on having an internal accountant, saving on monthly salary, annual leave, time in lieu and sick leave that would be needed for permanent employees.
2. Time Saving
By employing accounting firms for their services, you employ ‘instant employees’ and save time on training, recruiting and other employee-related activities.
3. Worry-free for deadlines and timeline
With the help of your accountant, you would not be needed to worry about the submission or reporting deadlines as the service providers would do it for you. This relieves the burden of deadlines and allows you to focus on other aspects of the business.
4. Better quality of work
Outsourced accounting providers will honour the service agreement because they need it as part of their business as compare to permanent employees who probably only worry about the next pay check.
5. Always up-to-date with latest regulations and legislations
Another advantage of having experts is that they are updated with the latest regulations and legislations relating to accounting functions.