Business Environment

The state of the accounting system in Indonesia in the "post-corona disaster"【Introduced as an extension of the accounting firm's consultation services】

2020/04/21


Recent improvements in the performance of cloud accounting systems

Currently, Accurate Online and Zahir Online are the most famous cloud accounting systems among Indonesian companies, but there are also Jurnal, which provides automatic journal entries and automatic reconciliation of accounts and systems with bank accounts, MYOB online, a well-established accounting software from Australia, XERO, a cloud accounting software from New Zealand, and Bridge Note, which is purely made in Japan.

  • Accurate Online
    A semi-standard accounting system for Indonesian companies with 300,000 users in Indonesia.
  • Zahir Online
    A purely homegrown accounting system that is the twin pillars of Accurate in Indonesia.
  • Jurnal
    It is a cloud accounting system provided by a SaaS company in Indonesia and features integration with Net Banking of Bank Mandiri, Bank BCA, Bank BNI and CIMB NIAGA Bank.
  • MYOB Online
    This is a standard cloud-enabled version of the low-cost Australian-made accounting software that has been popular in Indonesia for a long time.
  • XERO
    It is a relatively new company founded in New Zealand in 2006 and has one million site users worldwide for its cloud accounting software.
  • Bridge Note
    Struggling alone in Indonesia as a purely Japanese cloud accounting system.

One of the reasons why accounting systems are easily moved to the cloud is that there is not much difference in accounting operations between companies, which of course makes it easy to standardize, but the essence of it is that it is easy to optimize business efficiency even when using a standardized system in terms of the highest common denominator.

Our business system Hanafirst also has an accounting module, but it can't compete with the ever-evolving UI/UX of cloud accounting products, so we have separated the general accounting function from the current one and proposed it to make it easier to integrate with your accounting system.

Low monthly fees provided by accounting consultants

As accounting systems move to the cloud, it will become more common for accounting firms to provide accounting systems to their clients on a monthly basis, along with accounting bookkeeping and tax consulting.

In Indonesia as well, the performance of cloud accounting systems has improved and become significantly cheaper, and post-corona disaster, more and more business is expected to be done remotely, and the systematization of accounting operations should be done not by IT companies, but by accounting firms as a set of bookkeeping services and tax consulting.

In addition to the initial investment, installing expensive packaged software comes with fixed costs, such as license maintenance costs of 15% to 20% per year and monthly technical support costs, but the post-corona pandemic should cause companies to hold down fixed costs for company operations even more than before.

Comparing the price lists of each product, it is difficult to make a blanket judgment because of the differences in features, but some products are offered at low prices with the primary goal of gaining market share, especially now that some products are being offered at promotional prices as a remedy to lower the fixed cost burden on companies due to the effects of the new corona.

What can be offered to startups at a lower price is an accounting consulting company that can provide systems as an extension of bookkeeping and tax consulting, and I think the opportunity for Sier (system integrators) to implement an on-premise accounting system (with their own servers) will decrease.

Localization of system installation and operation

The reason why many Japanese companies ordered their employees stationed in Indonesia and their families to return to their home countries after the spread of the new coronavirus in Indonesia is not so much the risk of infection, but rather the anxiety about the medical conditions in the country in the event of infection.

Since April 2, business travelers and tourists other than ITAS (Information Technology and Information Technology Application Service Access Service) holders and diplomats have been banned from entering the country, including in transit, the number of business travelers from Japan is sure to decrease and the number of expatriates is likely to be reduced.

This is true of business systems in general, but the implementation of the accounting system will be led by the Indonesian side with the support of a local accounting consulting company or IT company, and the technical issues will be handled only by the Indonesian side.

The 2020 buzzword, Work From Home (WFH), will challenge the way the company as a whole works remotely, but there is no doubt that the system will change to operate with a high degree of independence while minimizing the physical movement of people.