Category: Tax & Accounting
Written by Reyhan Adam Himawan on 15/11/2022
The author’s views are entirely their own and may not always reflect the views of Putranto Alliance.
Bookkeeping services can be defined as a practice of recording financial transactions that are carried out systematically to collect data related to assets, liabilities, capital, income, and expenses. These data will then eventually be closed with an income statement and balance sheet.
This article provides a brief explanation of bookkeeping services and why businesses need bookkeeping services. In addition, this article also provides an overview of the differences between accounting and bookkeeping, as well as providing information about best practices from bookkeeping.
Bookkeeping is an activity that can be said to be boring, difficult, and time-consuming for business owners when it’s done by themself. To overcome this problem, business owners can use bookkeeping services. The benefits of bookkeeping services include:
In general, bookkeeping and accounting look the same, but there are differences between bookkeeping and accounting. The differences can be seen in the table below.
| Criteria | Bookkeeping | Accounting |
|---|---|---|
| Activities | Only record financial activity systematically |
|
| Requirements |
|
It requires certain skills because accounting procedures are more complex and systematic |
| Purpose | Track all financial activities in a structured manner |
|
| Criteria | Bookkeeping | Accounting |
|---|---|---|
| Activities | Only record financial activity systematically |
|
| Requirements |
|
It requires certain skills because accounting procedures are more complex and systematic |
| Purpose | Track all financial activities in a structured manner |
|
The bookkeeping method is divided into two: the single-entry bookkeeping method and the double-entry bookkeeping method.
Single book entry is a recording method where each transaction is only recorded once. The advantage of this method is that it is the easiest to use because the user only records the accounts of receipts and expenses. Although this method is easy to use, it has several disadvantages including:
The double entry method is a recording method where each transaction is recorded in the account twice. The concept of this method is that each transaction includes providing benefits and receiving benefits. Based on this, each transaction is recorded in debit once and in credit once. This method is more complicated than the single-entry method. So, this method is more time-consuming to perform. On the upside, this method has several advantages among others:
Bookkeeping is the most important part of doing business. If you feel like you don’t have time or feel unable to do the bookkeeping, Putranto Alliance offers bookkeeping services that can help you with your bookkeeping-related needs.
With years of experience in bookkeeping services, we can help with your bookkeeping starting from providing advice, as well as doing your recording transactions to closing the book.
If you fail to perform bookkeeping according to tax regulations you can be penalized with jail time up to six years and fines up to four times the amount of tax you owe to the government.
According to Indonesian tax law, an individual taxpayer who didn’t engage in business and independent personal services, an individual taxpayer who is engaged in business and independent services but is permitted by the tax regulation to calculate their income tax using deemed profit, and individual taxpayer who fulfilled certain criteria are not obligated to perform bookkeeping. Even so, they are still obligated to perform recording.
According to the Indonesian tax regulation, the bookkeeping minimum must consist of a recording of assets, liabilities, equity, income, expenses, sales, and purchases.
Thank you for sharing
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putranto@putranto-alliance.com
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