Outsourced accounting service in Indonesia is a term used for all-in accounting services provided by an external party. Typically, outsourced accountants provide the-day-to-day management of payable accounts, receivable accounts, financial reporting, cash flow reporting and many others. Outsourced accountants generally consist of several individuals forming a small team, which will cost considerably less than hiring actual employees. 

Types of Outsourced Accounting Service in Indonesia

1. Bookkeeping

In this service, we will organize your pre-existing books and ledgers. Should it be necessary, we shall create new ones. Furthermore, we will assist you in keeping tabs of claim forms, bank slips, bank statements, and various accounting reports that your company might have. 

2. Financial Reports

In this service, we will record, organize, and compile records of your monthly accounts. Including balances, statements, receivables, and payables. Everything will be organized in order and will be ready for your disposal within your preferred timeline. 

3. Payment Records

When conducting business, it is very likely that you will strike a partnership with external vendors. With outsourced accounting service in Indonesia, we will assist you in reviewing and managing invoices from vendors. We will make sure everything is orderly and make sure the figures are exactly correct. 

4. Financial Planning

In doing business, planning your finances properly is strongly advised. In this service, we will give you suggestions on budgeting, forecast your financial condition in the future, and make sure everything goes smoothly. 

5. Account Review

Streamlining and improving the accounting system is a must in order for the company to succeed. Therefore in this service, we will renew your accounting policies to the current developments. We will make sure that even the tiniest details will be kept in the records properly.

Benefits of Outsourced Accounting

1. Freedom

Most outsourced accounting service in Indonesia these days use cloud-based accounting software. With this method, you will be free to access your accounting records from anywhere in the world at any given time. 

2. Cost Saving

It is quite expensive to hire and train dedicated accounting personnel. However, by hiring an outsourced accountant, you will eliminate potential hiring and training costs. 

3. Continuity

When you hire accounting staff and they leave the company, important information goes out with them. By using outsourced staff, there is no risk of knowledge loss and you can get some continuity. 

Type of Companies That Use Outsourced Accounting Service in Indonesia

1. Small Business

Small businesses do not usually need full-time accountants, considering that they are mostly still in the process to establish other departments. As such, recruiting outsourced accountants usually becomes a solution

2. Company Struggling to Hire

There are many cases where companies struggle to recruit full-time accountants, be it for requirements or experience reasons. When it happens, they tend to use outsourced accounting service in Indonesia. 

3. Non-Profit Organizations

Just like their name, profit and finances and cash flow management are not typically the main priorities of this type of company, but there are times where they are still needed. Therefore in this scenario, it becomes a good solution to hire outsourced accountants. 

How can Double M help?

Using Outsourced Accounting Service in Indonesia is a great way to manage your finances. With Double M’s help, you can focus on other aspects of businesses and leave the accounting matters to us.

Fintech Company in Indonesia has been thriving for quite sometime. Financial technology, commonly abbreviated as fintech, is a new form of technology that aims to disrupt the usage of traditional financial methods in providing financial services. Generally, there are four pillar areas of fintech: Artificial Intelligence, Blockchain, Cloud computing, and big data. Most people know Fintech in Indonesia for their usage of smartphone technology for mobile banking, investing, loan services, and cryptocurrency. In recent years, fintech companies are growing larger in Indonesia, both in numbers and revenues.

Reasons Why Fintech Company in Indonesia is Thriving

Here are 5 reasons why fintech company in Indonesia is thriving:

1. High Demographic, High Internet Usage, Low Bank Usage

With a population almost reaching the figure of 280 million, Indonesia is the fourth most populous country in the world. Around 204 million, or 70% percent of the population are active internet users. Considering the fact that fintech is internet-based, it makes Indonesia such a fertile market for these enterprises to invest in.

During the peak of the Covid-19 pandemic in 2020, about 129 million Indonesian used e-commerce and conducted transactions which amounted to IDR 266 trillion in total transaction value. As the most popular form of online payment these days, fintech companies are reaping the benefits of this upwards trend.

According to the e-Conomy SEA Report conducted by Google, Temasek, and Bain & Company, it was stated that 92 million Indonesians are unbanked, meaning they do not have any bank account at all, while 47 million are underbanked, meaning that they have a bank account but do not have access to credit cards as form of payment. This is an enormous opportunity for fintech companies that provide internet banking and digital payment services. 

2. Government Support

Law and regulation compliance often become a tricky obstacle in the financial sector. Strict laws and regulations are there to protect the consumers. In Indonesia, the government realizes the needs for an inclusive financial system. That is precisely why every fintech in Indonesia operates under the license, authorization, and guidance from the OJK (Financial Services Authorities). The Minister of Finance, Sri Mulyani also reaffirmed the intent of the Indonesian government to support the optimization of fintech company in Indonesia. Apart from easing regulations, the Indonesian government also collaborates alongside fintechs for the distribution and sales of Surat Berharga Negara (National Securities). The government also struck a deal with fintech companies to distribute cash relief for at-risk citizens during the peak of the Covid-19 pandemic.

3. Huge Investment

Investment is an instrumental factor for the success of a company, and fintech company in Indonesia is no exception. According to Statista, global fintech financing went from USD 59.2 billion and almost quadrupled to USD 320.2 billion in 2021. This upward trajectory is also evident in Indonesia which is constantly rising. In 2018 there were 46 fintech financing being done with a total valuation of USD 300 million.

A year after, the number of deals increased to 65 with a total valuation of USD 700 million. In 2020, the number of deals went down to 57 with a total valuation of USD 500 million, this could be seen as the impact of the Covid-19 pandemic.

After the temporary downfall, the numbers substantially increased to 97 deals worth USD 1.6 billion in 2021, tripling the previous numbers. Throughout the first half of 2022, the number of deals went down to 51 but the total valuation increased to USD 1.8 billion. This constant growth in investment shows the confidence of the market to the Indonesian fintech ecosystem. As Indonesia progresses closer in its quest to become one of the world’s biggest internet economies, fintech company in Indonesia will reportedly continue to prosper and excel.

4. SMEs

The Conversation suggests that there are more than 60 million SMEs in Indonesia. They contribute to 60% of the country’s economy and absorb 97% of the workforce. This shows that SMEs are one of the linchpins of the country’s economy, However, only 12% of them were able to get financing or bank loans. The Covid-19 pandemic made the situation worse, considering approximately 50% or 30 million SMEs were closing because demands are diminishing. This becomes a huge opportunity for fintech company in Indonesia, especially for those operating in loan services/P2P lending. With millions of SMEs looking to bounce back, the fintech ecosystem will be back to its absolute peak.

How can Double M help?

Fintech company in Indonesia play a huge part in Indonesia’s economy. Double M can help you establish your own fintech company or link you with existing fintech company for business matchmaking.

The Best Skill Investors Have – What exactly is the point of investing?  Though there is a lot to be gained by pursuing riches of another kind: wisdom, there is rarely one apparent solution. Solid investing abilities precede computer models and giddy commentators, and they have survived for a reason: successful stock market gurus have put the ideas to the test. It also emphasizes that going it alone is not recommended.

Become a student for your life

“Don’t tell us how he spent his money, tell us how he made money,” a younger Warren Buffett reportedly urged a tour guide after touring a tycoon’s house. Buffett, despite being a billionaire, continues to research investment.

Best Skill Investors Have : Put a place on value investment

Buffett’s concept of wealth is also based on value investing, where assets that are undervalued are bought for the long term. Kurt M. Westfield, director of WC Equity Group in Tampa, Florida, said, “This has long been a technique investors use to find growth.” Westfield is looking for an undervalued commercial building.

Keep up with the news, but do not make it a daily grind

News addicts who also happen to be market junkies are not necessarily the best investors. However, keeping a watch on new Government regulations and acts, for example, might shift the scales in favor of would-be stockholders who stand to profit. Here is an example from today: Interest rates are on the rise. Stocks in industries like banking might climb if the Federal Reserve raises interest rates. 

Best Skill Investors Have :  Manage Yourself and Lead the Team

Pro investors understand who they are, how they can maximize their strengths, how to outsource their shortcomings, and why they invest. They have a big picture in mind for how they want to affect the world, their communities, and their family. They want their investment vehicles to have meaning for them. They are there to help others. True leaders don’t simply inspire followers; they also inspire others to become leaders and best skill investors have.

Those are some of the skills that the best investor should have, if you want to know how to enter the South East Asia market, Double M can help you.

Bank Account in Indonesia – If you plan to stay in Indonesia at a certain time as an expatriate, or perhaps even in a long term, then it is recommended to open an Indonesian bank account. Although this is not a necessity, it will make life easier for you. By having a local bank account, you can easily manage and do all sort of financial activities such as bill payments, salary transfers and cash withdrawals.  

Local banks offer savings and checking accounts in Rupiah or a foreign currency (usually in US Dollars). In addition, banks also offer term deposits, credit cards and foreign exchange services. After checking which bank services you need, the next step is to open a bank account. Before applying for a local bank account, it is advised that you should check what documents are needed. You can check this by visiting the bank website or the branch directly. However, these are some of the documents you likely need:

1. Valid passport
2. Temporary resident permit (KITAS)
3. Proof of address in Indonesia
4. Residency contacts
5. Domicile letter
6. If you have work-related KITAS, a recommendation letter from your employer and your employer’s NPWP (tax identification number).
7. Your NPWP (tax identification number).

Choosing the Right Bank

Based on the banking statistics of the Financial Services Authority, in 2021 there are 107 commercial banks operating in Indonesia. With that number of banks, it is certainly difficult to choose the most suitable. Therefore, to make it easier for you, here we provide 3 bank recommendations for expatriates.

1. OCBC NISP

This is one of the oldest banks in Indonesia and is currently owned by OCBC Singapore. OCBC NISP offers a multi-currency account, Tanda 360 Plus. Tanda 360 Plus can manage 12 currencies in one account. The 12 currencies are the following.

1. Rupiah (IDR),
2. US Dollar (USD)
3. Singaporean Dollar (SGD)
4. Japanese Yen (JPY)
5. Euro (EUR)
6. Australian Dollar (AUD)
7. Pound Sterling (GBP)
8. Hong Kong Dollar (HKD)
9. Switzerland Swiss (CHF)
10. Canadian Dollar (CAD)
11. New Zealand Dollar (NZD)
12. Chinese Offshore Yuan (CNH).

2. CIMB Niaga

This bank is a joint venture between CIMB Group Malaysia and Bank Niaga. CIMB Niaga has a wide network and presence in ASEAN countries such as Malaysia, Singapore, Thailand, Cambodia, Philippines, Brunei, Laos, and Myanmar. If you are an expatriate who often travels around South East Asia, this will facilitate your financial activities.

3. Bank Mandiri

Mandiri is currently the state-owned bank with the largest assets. The advantage of using Mandiri is their huge network of offices and the terms and conditions for inter-bank transfers, both domestic and overseas, are easier than other banks.

How can DOUBLE M help you?

Double M is providing market entry solution services in South-East Asia. Should you have any inquiries, please contact us at info@double-m.co