RealEstat.id (Jakarta) – According to the observations and findings of Colliers Indonesia Real Estate Management Services team, financial and accounting governance in the management of commercial buildings remains inadequate and suboptimal.
If financial and accounting governance is not executed properly, the consequences can be significant and may affect the property’s sustainability.
To optimize financial and accounting governance of commercial buildings, it is important to properly implement the following stages:
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Planning Stage
The planning stage is a crucial phase in financial and accounting governance. This budget planning will serve as a control tool for implementing financial and accounting governance in the upcoming fiscal year.
Effective budget management requires supportive systems or tools. These are essential to ensure accuracy in assumptions, transparency, and accountability throughout the processes of budget creation, supervision, approval, and the administration of budget documentation from submission to final approval.
Implementation Stage
During the fiscal year, implementing good governance is mandatory. The reference for accounting is the Financial Accounting Standards or Pernyataan Standar Akuntansi Keuangan (PSAK) applicable to each field and category of business or organization.
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Andy Harsanto, Head of Real Estate Management Services mentioned that “Financial governance policies and procedures, such as the management of cash, and cash equivalents transactions, need to be regulated through disciplined application. This is because they often become loopholes for misuse or violations (fraud) in their activities.”
In financial and accounting governance, it is highly recommended to use credible and proven financial and accounting systems. The goal is to ensure that the accuracy, reliability, and transparency of financial and accounting management are well-managed, audited, and accounted for.
Supervision Stage
This stage is crucial to ensure several things, include financial and accounting governance is conducted properly and in accordance with PSAK standards, applicable policies and procedures are followed, as well as agreed financial targets in the budget can be achieved as well as explanations and corrections can be made if necessary.
To implement financial and accounting governance in line with best practices, regulations, and established policies or procedures, it is essential to use a financial system that is effective, efficient, reliable, and easily accessible to stakeholders.
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