Foreign groups can outsource the accounting of their Indonesian subsidiaries, but the arrangement needs to support both the subsidiary’s Indonesian accounting requirements and the financial information required by overseas headquarters.
Structure the Accounting Work Between Indonesia and Headquarters
The Indonesian subsidiary may provide invoices, bank records, employee costs, supplier information, and other supporting documents. The outsourced provider can use this information to maintain the accounting records, complete reconciliations and month-end closing, and prepare financial reports.
The Indonesian subsidiary may continue to approve transactions and payments, while overseas headquarters may remain responsible for group consolidation and other group-level reporting decisions.
Outsourcing your Indonesian subsidiary’s accounting? Contact MAP Resources Indonesia at info@mapresourcesindonesia.com
Intercompany transactions also need to be reconciled with overseas group companies. For example, a receivable recorded by the Indonesian subsidiary should agree with the corresponding payable recorded by the other group company before the figures are used for group reporting.
Align Indonesian Accounts with Overseas Group Reporting
The Indonesian subsidiary may use different account categories, reporting currency, or reporting formats from its overseas parent. This can require mapping the Indonesian chart of accounts to the group’s reporting categories and providing financial information in the currency or reporting templates required by headquarters.
Align Indonesian accounting with group reporting through MAP Resources Indonesia: info@mapresourcesindonesia.com
Differences can also arise between the accounting framework used in Indonesia and IFRS or another framework used by the overseas group. If the two frameworks treat an item differently, adjustments may be needed when the subsidiary’s figures are included in the group’s consolidated financial statements, while the Indonesian accounting records continue to support local requirements.
If headquarters closes its group accounts shortly after month-end, the Indonesian subsidiary needs to complete its accounting and reconciliations in time for the group’s consolidated financial statements.
Outsourced Accounting with MAP Resources Indonesia
MAP Resources Indonesia provides outsourced accounting support for Indonesian subsidiaries of foreign groups, with accounting processes that accommodate Indonesian requirements and overseas group reporting. Contact us at info@mapresourcesindonesia.com for outsourced accounting support in Indonesia.
