Foreign-owned companies in Indonesia can outsource their bookkeeping to a local provider to maintain their accounting records in accordance with Indonesian requirements. This allows an Indonesian subsidiary to maintain a local accounting function without necessarily hiring a dedicated bookkeeping team.
What Do Bookkeeping Services in Indonesia Cover?
Bookkeeping services can cover the recording of revenue, expenses, purchases, sales, payments, receipts, accounts payable and receivable, fixed assets, accruals, and other transactions affecting the general ledger. Monthly work can also include bank reconciliations, other account reconciliations, closing adjustments, supporting schedules, and preparation of the trial balance.
Indonesian corporate taxpayers are required to maintain books that record their assets, liabilities, capital, income and expenses, as well as the acquisition and supply of goods or services, including sales and purchases, so that their tax liabilities can be determined.
Need reliable bookkeeping support for your Indonesian operations? Contact MAP Resources Indonesia at info@mapresourcesindonesia.com
As a rule, bookkeeping must be maintained in Indonesia using the Latin alphabet, Arabic numerals, Indonesian rupiah, and the Indonesian language. Certain categories of taxpayers can maintain books in a foreign language, or in a foreign language and in a foreign language and a currency other than rupiah, where they meet the applicable requirements and complete the required notification or obtain approval.
Books, records, supporting documents, and relevant electronic data generally need to be retained for 10 years. The Directorate General of Taxes (DGT) can examine these records and supporting documents during a tax audit.
For a foreign-owned company, the same bookkeeping records can be used to prepare financial information required by an overseas parent. The Indonesian entity can therefore maintain its local books while mapping the resulting accounts into the reporting format used by the wider group.
Bookkeeping Services in Indonesia with MAP Resources Indonesia
MAP Resources Indonesia provides bookkeeping services for foreign-owned companies operating in Indonesia, from maintaining the general ledger through to monthly closing and financial reporting. Contact us today at info@mapresourcesindonesia.com.
