Financial Efficiency for the Biggest Tech Company in Indonesia

Challenges

1. Lack of transparency on fees and salary of employees.
2. Difficulty to track minor costs.
3. Difficulty in understanding incentives and overpayments.
4. Challenge in reducing the amount of cash advance and the need for clarity on the income tax 21 (PPh21) tax associated.

Solutions by Recruitfirst Indonesia

1. Adopting a percentage-based management fee
2. Enhanced cost transparency.
3. Detailed tracking of costs and reimbursements.
4. Advisory on tax minimization and additional services for operational efficiency.
5. Comprehensive monthly and year-round report.

How Recruitfirst Indonesia Enhances Financial Clarity and Efficiency

The biggest tech company in Indonesia faced several issues concerning financial transparency and operational efficiency. These challenges were primarily due to unclear pricing structures, complex cost management, and a lack of control over cost of operational decisions. Recruitfirst Indonesia (RFI) stepped in to provide a comprehensive solution aimed at resolving these issues, thereby enhancing financial clarity and streamlining operations.

Financial Transparency Strategies by Recruitfirst Indonesia

The tech company struggled with transparency in their financial dealings. The fixed pricing model and employee salary details were ambiguous, making it difficult to understand and justify the costs associated with their services. This lack of clarity prevented the company from accurately assessing whether they were getting value for their money and if the fees paid were appropriate.

To address this issue, RFI introduced a percentage-based management fee model instead of a fixed price approach. This change provided the client with a clearer and more predictable cost structure, aligning expenses with the services provided and improving overall financial transparency.

Comprehensive Expense Tracking by Recruitfirst Indonesia

At first, the company’s cost management was complicated by the intricate nature of their expense structure. Tracking minor expenses became a struggle, leading to inefficiencies and difficulties in maintaining a precise record of all financial transactions. This complexity created challenges in budget management and financial oversight.

Also, due to the opaque pricing and incentive structures, the client faced difficulties in understanding the full scope of incentives and determining if they were overpaying for the services provided. This uncertainty caused concerns over whether payments were aligned with the value received.

To solve this, RFI meticulously tracked and managed all costs and reimbursements, ensuring that every expense was accurately recorded. This comprehensive tracking helped the client maintain accurate financial records and reduce discrepancies in their accounting processes.

Recruitfirst Indonesia’s Focus on HR Administration

Another issue the client faced was that the previous vendor managed incentives and bonuses based on key performance indicators (KPIs). The client believed that KPIs should be determined by them rather than the vendor, as this would better align the incentives and bonuses with their specific business objectives and operational needs.

RFI, on the other hand, agreed to focus exclusively on HR administration. This arrangement allowed the client to keep control over their operational aspects while still benefiting from RFI’s expertise in managing HR functions.

Additional Services for Operational Efficiency

Moreover, the company aimed to minimize cash advances and needed clearer insights into PPh21 tax implications for business travel and other expenses. They sought a simpler approach to managing financial transactions and understanding tax obligations. RFI addressed these needs by providing tax minimization advice and offering solutions to enhance operational efficiency. This included arranging flight ticket bookings, making vendor payments on behalf of clients, and reducing the need for additional allowances and extra taxes.

Comprehensive Monthly and Yearly Report by Recruitfirst Indonesia

To make audits and data checks easier, Recruitfirst Indonesia (RFI) provided detailed monthly and yearly reports. These reports helped the client keep accurate financial records throughout the year. With regular and clear reports, the audit process was smoother, and data was easier to verify.

Monthly reports allowed for ongoing review and quick fixes, while yearly reports gave an overview of the entire year’s financial activities. This organized approach made it simple for the client to track transactions and ensure their records were accurate, implementing RFI’s commitment to transparency and supporting the client’s audit needs.

Through its targeted solutions, RecruitFirst Indonesia successfully addressed the financial transparency and operational efficiency challenges faced by the biggest tech company in Indonesia. By adopting a percentage-based management fee, improving cost visibility, and providing supplementary services, RFI showcased its proficiency in handling intricate financial and HR operations. This collaboration not only resolved the client’s immediate issues but also contributed to improved financial clarity and operational effectiveness of the company in the long run. Contact us today to discover how RFI as an outsourcing company can help your organization achieve similar success.