9 Mistakes by Accountants in Bali That Cause Companies to Lose Licenses and Pay Fines
Managing accounting in Indonesia requires not only attention to deadlines and documents but also a deep understanding of local laws.
Even experienced accountants in Bali often make mistakes that can lead to fines, tax audits, and even company suspensions.
We have compiled the nine most common accounting mistakes encountered by PT PMA company owners in Bali.
1. Mistakes in Income Classification (PPh 21, 23, 26)
A common issue is incorrect tax classification.
Local accountants often confuse tax types and incorrectly categorize commissions or rental under the wrong PPh category.
Consequences:
the tax office may request explanations (SP2DK) or initiate an audit;
fines and penalties are imposed;
the company spends time and resources correcting reports.
2. Late Submission of Monthly or Annual Reports
Some accountants submit reports after the deadline.
Consequences:
there are usually no fines for monthly reports, but additional checks and increased attention from the tax office are possible;
annual reports can incur fines up to 1,000,000 IDR and risk NPWP (tax number) suspension.
3. Failure to Record All Transactions (Especially Cash)
Accountants often do not record small receipts or expenses, considering them insignificant.
This violates principles of transparent accounting.
Consequences:
discrepancy between actual and recorded data;
loss of financial tracks;
additional inspections and queries by the tax office.
4. Mistakes in Calculating PPh 25 Advance Taxes
PPh 25 applies three years after a company is registered and is calculated as a monthly advance tax on profits.
Some accountants either do not inform clients about this tax or do not calculate it at all.
Consequences:
accumulation of tax debt;
fines and penalties;
possible NPWP suspension and additional audits.
5. Incorrect Bookkeeping
Lack of systematization and categorization of transactions (capital, operating expenses, personal expenses) makes accounting opaque.
Consequences:
errors in financial and investment reporting (including LKPM);
difficulties in company management;
misrepresentation of the actual financial picture.
6. Lack of Quarterly Investment Reporting (LKPM)
Some accountants underestimate the importance of LKPM — a report that reflects a company's investment activity.
It must be submitted by the 10th of the month following the quarter.
Consequences:
warnings from BKPM (Investment Ministry);
OSS account suspension;
revocation of NIB and inability to operate.
7. Ignoring Reporting for Dormant Company Status
A common myth: if a company is not operating, it doesn’t need to report.
Some accountants convince clients that 'zero' reports are not required.
Consequences:
initially the tax office may not react, but eventually, an inspection will follow;
possible fines and NPWP suspension;
increased scrutiny for the company in future filings.
8. Using Director’s Personal Account for Corporate Operations
Sometimes a director uses a personal account for company transactions, especially for small operations.
If such transactions are not correctly recorded, the tax office may regard them as unaccounted income.
Consequences:
additional tax assessments;
risk of double taxation;
additional checks.
9. Mistakes in Reporting Dividends and Profit Distribution
Some accountants mistakenly account for dividends as expenses, although they are subject to a 10% tax.
Consequences:
need for tax recalculations;
possible fines and audits;
increased attention from tax authorities.
How to Avoid Accounting Mistakes in Bali
Work only with licensed and verified accounting firms.
Ensure the specialist is familiar with the Indonesian tax system (PPh, VAT, LKPM, OSS).
Monitor report submissions and always request copies of documents.
Legal Indonesia Support
Licensed accountants at Legal Indonesia help companies in Bali ensure accurate accounting in accordance with legal requirements.
We handle the preparation, review, and submission of all reports — from monthly tax to investment LKPM.
Need consultation?
Contact us — we will analyze your situation and offer the best solution for your company.
