Category: Accounting

Top Business Process Outsourcing Trends Globally in 2025

Top Business Process Outsourcing Trends Globally in 2025

Top Business Process Outsourcing Trends Globally in 2025

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In 2025, the business process outsourcing (BPO) sector is experiencing a transformational surge. Fuelled by economic pressures, technological innovation and the need for strategic agility, outsourcing has evolved from a tactical cost-cutting move into a core growth enabler for global enterprises. According to Acumen Research and Consulting, the global BPO market is projected to hit USD 512.4 billion by 2030, growing at a compound annual growth rate (CAGR) of 8.9% from 2022.

While North America holds the largest share of the BPO market, Asia-Pacific (APAC) is quickly emerging as the fastest-growing hub, thanks to its deep talent pools, multilingual workforce and expanding digital infrastructure. Within APAC, Singapore has cemented its status as a regional outsourcing powerhouse, offering an ideal blend of business-friendly regulations, innovation-driven policies and regional accessibility.

Understanding the key trends shaping BPO – plus their benefits and potential risks – will help CFOs, COOs, HR leaders and other decision-makers make informed choices that enhance scalability, ensure compliance and strengthen their competitive edge in 2025 and beyond.

What’s Driving the Growth in Business Process Outsourcing?

As businesses navigate shifting markets and rising demands, outsourcing is no longer just a cost-cutting measure; it’s becoming a core strategy for growth.

The following forces are driving the rapid expansion of BPO worldwide, shaping the key factors behind its momentum heading into 2025:

Economic uncertainty and cost pressures

Ongoing global uncertainty, rising labour costs and inflation are prompting companies to reassess cost structures. Outsourcing offers a more flexible cost model by converting fixed costs into variable ones while still delivering quality services.

Need for operational scalability and expertise

Businesses increasingly require access to domain specialists without the overhead of building internal teams. Whether for finance, tax, payroll or IT, outsourcing provides instant scalability and access to experts, especially in highly regulated or fast-changing industries.

Digital transformation and remote work

The acceleration of AI, automation and cloud technologies is redefining how services are delivered. Remote work has proven that geography is less of a constraint, allowing organisations to engage service providers across borders with minimal disruption.

APAC’s strategic advantage

APAC’s BPO market is expanding at the fastest compound annual growth rate globally, with Singapore leading the way. The city-state offers advanced infrastructure, a tech-savvy workforce and a central time zone that supports 24/7 operations across Asia and beyond.

Top Business Process Outsourcing Trends to Watch in 2025

Top Business Process Outsourcing Trends to Watch in 2025

With these factors fueling the rapid rise of outsourcing, the market’s growth shows no sign of slowing. Here are the top outsourcing trends for 2025:

End-to-End Finance Outsourcing

Gone are the days when businesses outsourced only bookkeeping, accounts payable or accounts receivable. Companies are increasingly entrusting their entire finance function – including accounting, statutory reporting and tax advisory – to external providers. This trend supports better financial planning, forecasting and risk management, particularly for companies expanding across borders.

HR Outsourcing Trends

HR outsourcing has evolved beyond basic payroll processing. In 2025, there is strong demand for services such as recruitment process outsourcing (RPO), cross-border payroll administration, onboarding and employee self-service portals. Providers like BoardRoom deliver fully managed payroll solutions across 19 APAC markets, with built-in compliance and customisation.

IT Services Outsourcing Trends

IT outsourcing continues to surge, particularly in cybersecurity, cloud infrastructure management and AI/automation support. As hybrid work models persist, businesses require secure, scalable IT support. According to rethinkCX, more than 50% of BPO vendors now use AI in client support environments, handling up to 80% of routine enquiries.

Industry-Specific Outsourcing

Tailored BPO offerings for niche sectors like fintech, healthcare and logistics are growing in popularity. These providers bring deep regulatory and operational knowledge, enabling more effective service delivery. For example, healthcare BPO partners manage everything from patient billing to telehealth scheduling.

Performance-Driven Outsourcing

In 2025, businesses are seeking outcome-based partnerships rather than transactional service agreements. This means BPO contracts now include service-level expectations tied to metrics like Net Promoter Score (NPS), First Call Resolution (FCR) and even ESG alignment.

ESG and Sustainability in BPO

Sustainability is no longer optional. A Deloitte study found that 40% of companies now favour outsourcing vendors with strong environmental, social and governance (ESG) credentials. Green data centres, paperless processes and diversity in staffing are now factors in vendor selection

The Benefits and Potential Risks of Outsourcing — and How to Navigate Them

Though outsourcing can drive growth, there are a range of potential challenges. Understanding both the advantages and possible risks helps business leaders make confident decisions and build strong, reliable partnerships.

The benefits are clear. Outsourcing reduces overheads by converting fixed costs into variable expenses while providing immediate access to specialised expertise in payroll, accounting, tax and compliance. It also enables rapid scaling of operations and supports faster market entry, particularly when expanding into new regions.

Conversely, risks such as data security breaches, regulatory non-compliance or unreliable service delivery can disrupt operations if they are not properly managed.

Choosing the right service provider can minimise these risks. Look for well-defined service level agreements, ongoing due diligence and providers with proven local and cross-border expertise. With the right safeguards, outsourcing remains a strategic lever for growth and operational flexibility.

How BoardRoom Helps You Outsource with Confidence

How BoardRoom Helps You Outsource with Confidence

As one of APAC’s leading corporate services providers, the One BoardRoom Advantage offers businesses end-to-end outsourcing solutions backed by regional expertise, award-winning technology and a 50-year legacy of trust. These include:

Company Incorporation

BoardRoom can facilitate a seamless market entry into Singapore with end-to-end company registration and incorporation services. We assist with entity selection, name reservation, nominee directors and post-incorporation compliance. Our fast turnaround and in-depth tax structuring advice help businesses establish a compliant presence efficiently and effectively.

Across all services, clients have access to a dedicated account manager, providing a single point of contact for streamlined communication and quick response times. We combine local insights with regional scale, helping businesses navigate multi-jurisdictional complexity with confidence and clarity.

Payroll Outsourcing

BoardRoom’s Ignite payroll platform supports companies across 19 countries. It is a fully compliant, secure, cloud-based system with integrated leave and claims modules. BoardRoom maintains ISO 27001 and SOC 2 certifications, ensuring enterprise-grade security. It boasts a 24-hour SLA response rate and supports more than 500 clients in the region.

Tax Advisory and Filing

BoardRoom’s tax advisory and filing services help clients navigate complex Singapore and regional tax regulations, including GST, transfer pricing, corporate income tax and withholding tax. Services include tax health checks, due diligence, investment advisory and cross-border structuring. Our proactive approach ensures clients capture all eligible tax incentives and exemptions.

Accounting and Bookkeeping

BoardRoom’s accounting and bookkeeping services are reliable and accurate. With Xero Platinum Partner status, we provide advanced management and statutory reporting, group consolidation and financial year-end statement preparation. Clients, especially those operating across multiple jurisdictions, benefit from strategic cashflow insights and reduced compliance overheads.

Corporate Secretarial & Governance

With deep experience in Singapore’s Companies Act and regional listing rules, BoardRoom delivers robust secretarial and governance support. Services include company incorporation, named secretaries, board meeting management and full regulatory reporting for SGX, BURSA and HKEX.

Sustainability Services and Advisory

BoardRoom helps businesses meet evolving sustainability requirements with end-to-end sustainability reporting services. We support you from accurate data collection and climate risk assessment to drafting clear, compliant reports using recognised frameworks such as TCFD, ISSB and GRI. We also advise on available funding opportunities from local governments, enabling you to transform sustainability compliance into a strategic advantage that enhances transparency, resulting in investor confidence and long-term value creation.

The Future of BPO is Strategic

As we navigate 2025, it’s clear that BPO is evolving and is no longer about cost savings alone. It is a strategic lever to unlock growth, improve agility and enhance customer experiences.

By partnering with an experienced and integrated provider like BoardRoom, businesses can de-risk their outsourcing strategy while gaining scalable, future-ready capabilities. With technology-driven delivery, regional reach and deep functional expertise, BoardRoom is positioned to help clients thrive in an increasingly competitive global environment.

Speak with BoardRoom today about outsourcing solutions tailored to your growth strategy in 2025 and beyond. Contact us to start planning your next steps.

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Why Siloed Service Providers are Holding Your Business Back

Why Siloed Service Providers are Holding Your Business Back

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Integrating your corporate services under one trusted provider is not just about convenience. It is a strategic move that drives cost savings, improves efficiency, and frees your team from unnecessary admin. With a unified approach, you reduce duplicated efforts, streamline communications, and gain clearer oversight across your operations.

As businesses grow, it’s common to bring in different corporate service providers to manage key areas such as incorporation, payroll, accounting, tax, company secretarial work and IPO readiness. While each provider may deliver on their specific responsibilities, they often operate independently.

Without clear communication or coordination between these service providers, important details can be missed, and overall visibility can suffer. This disconnection often leads to slow progress, compliance risks and an inability to scale effectively.

The best way to solve these issues is to consolidate services with a single, trusted partner. The OneBoardRoom Advantage is an integrated model that covers everything from corporate secretarial and payroll to tax, accounting, and share registry, aligning all functions to reduce risk, optimise costs, save valuable time and support strategic growth at every stage of your business.

To move toward a more scalable and resilient operating model, it’s important to first understand why fragmentation happens in the first place.

Why Businesses Get Stuck with Fragmented Support

Engaging different specialists for each business function may seem cost-effective, but fragmentation has long-term costs that are often hidden. These include slow progress caused by misaligned processes, duplicated efforts, and a lack of information sharing and increased risks due to critical gaps in oversight.

Companies can find themselves in this position due to a range of reasons, including:

  • Legacy vendor relationships: Continuing to engage providers without reassessing whether they still meet current needs.
  • Regional expansion: Onboarding of local providers in each market rather than choosing global partners to work across regions.
  • Lack of central oversight: Vendor decisions being made in isolation across the business.
  • Short-term fixes over long-term strategy: Reacting to immediate needs rather than cohesive and strategic planning.

These decisions are often made with the right intentions, but without a long-term view, they can lead to structural inefficiencies that slow growth.

“Business needs evolve significantly as companies grow – from initial setup to regional expansion and preparing for IPOs,” says Angeline Aw, Group Chief Executive Officer at BoardRoom Group. “A service model that worked in the early stages often becomes a limiting factor once you’re managing cross-border teams or investor relations.”

“It’s easy to end up with a patchwork of providers that no longer align with the direction of the business. That’s why it’s critical to regularly reassess your service ecosystem to ensure it continues to support your strategic goals.”

The Hidden Costs of Siloed Service Delivery

The Hidden Costs of Siloed Service Delivery

Businesses that rely on disconnected service providers often find themselves grappling with more than just communication delays. Often, these can create compliance risks, slow down operations, and make it harder for businesses to respond confidently to growth opportunities.

These issues often remain under the radar until they start to impact performance, and by then, the financial and strategic costs can be considerable.

Compliance Gaps

Siloed service delivery can result in missed regulatory filings, inconsistent record-keeping, and gaps in meeting compliance obligations across different jurisdictions. For example, a business with entities across different regions may overlook local filing deadlines or statutory changes if no one is coordinating updates centrally. This may often lead to penalties or reputational risk during regulatory reviews.

“When providers don’t stay aligned, even routine changes can slip through unnoticed,” says Angeline. “This lack of coordination can lead to avoidable regulatory breaches and reputational damage.”

Operational Inefficiency

Corporate secretarial, accounting, tax, and payroll functions are closely linked, as changes in one area (such as director appointments, payroll costs, or financial data) often impact statutory filings, tax calculations, and reporting deadlines across the others. These functions also rely on shared data and aligned timelines. When these services are managed by separate providers without integration, gaps in coordination can emerge, leading to slower processes and heavier administrative workloads.

During quarterly reporting or compliance reviews, businesses often struggle to compile accurate data across service lines. Differences in formats, submission schedules, or interpretations of requirements can delay decision-making and place additional strain on internal teams.

Lack of Strategic Visibility

When data and insights are scattered across various providers, decision-makers lack a clear, unified view of business performance and risks. For instance, fragmented payroll and tax data can make it difficult for a group CFO to assess consolidated headcount, cash flow, or employment costs when preparing for a board meeting or internal budget review.

“It’s incredibly difficult to plan with confidence when critical information is fragmented across different systems and teams,” says Angeline. “Siloed data prevents leaders from seeing the full picture.”

Scalability Issues

As businesses prepare for events like market expansion, M&A, or IPOs, having a single, unified view becomes crucial. When services are fragmented, decision-makers may struggle to pivot quickly or present a cohesive due diligence narrative.

With one partner managing key compliance and operational functions across jurisdictions, businesses benefit from faster onboarding in new markets, better consistency in reporting, and greater agility in responding to evolving regulatory or investor demands. This reduces duplication, shortens timelines, and improves confidence in strategic execution.

The Strategic Advantage of Integrated Corporate Services

The Strategic Advantage of Integrated Corporate Services

Integration isn’t just about fixing inefficiencies – it’s a strategic enabler that gives leaders the clarity, control, and confidence to make faster, better-informed decisions.

“When businesses transition to integrated services, leaders often tell us it gives them the visibility and control over costs and operational efficiency, enabling them to make faster decisions with greater confidence,” Angeline explains.

Unifying all of your key corporate services via the OneBoardRoom Advantage means:

  • Single source of truth: This ensures that your operational data is consistent, reliable, and accessible when and where you need it.
  • Improved compliance and governance: Reduce risk and stay aligned with evolving regulatory requirements.
  • Greater agility: Be ready for scale, to expand into new markets and to respond to stakeholder demands more quickly.
  • Cost and time efficiencies: Lower administrative burden, streamline workflows, and achieve greater value through bundled services.

With a single point of contact, your business gains streamlined communication and accountability, no matter how many markets you operate in. With consistent service across regions, tech-enabled compliance, and tailored advice at every stage, integration supports you to stay ahead of regulatory demands and make confident decisions towards growth.

How BoardRoom Breaks Down Silos and Powers Business Growth

Understanding the value of integration is one thing – putting it into practice is another. That’s where the OneBoardRoom Advantage comes in. BoardRoom’s integrated service is built for businesses at every stage, with the ability to add services as your business grows.

“We support the full business lifecycle across governance, finance and payroll – from startup to IPO and beyond,” Angeline says.

Here’s how the OneBoardRoom Advantage supports businesses at every stage of growth:

Inception

Company incorporation, business structure advisory, license applications, payroll, accounting, and tax setup.

Growth

Integrated support across corporate secretarial, accounting, tax compliance, payroll processing, and employee share plan development.

Expansion

Regional and international scalability through multi-country payroll management, corporate governance advisory, multi-entity accounting and consolidation, cross-border tax advisory and planning, and sustainability reporting for listed entities.

Scale

IPO readiness services, post-IPO corporate governance & secretarial support, share registry management, AGM/EGM meeting services and investor relations.

BoardRoom’s cross-border expertise supports businesses as they expand regionally and internationally. Our 850-strong team combines comprehensive Asia-Pacific knowledge and commercial experience to navigate the complexities of multiple jurisdictions while maintaining a single point of contact.

“Our global teams communicate across functions and with our clients, so everyone stays aligned. That means fewer surprises, clearer reporting, and support that actually feels connected,” Angeline says.

BoardRoom is the partner of choice for more than 7,300 companies, including Fortune 500 multinationals, public firms and private enterprises. With a strong track record as a trusted corporate service provider throughout the Asia-Pacific, we bring over six decades of experience in governance, compliance, and business efficiency.

Our experienced professionals, many of whom have been with us for years, offer deep institutional knowledge that fosters stability and enables us to handle complex client needs with confidence. Supported by a lean, agile organisational structure and advanced technology platforms, we consistently deliver responsive, high-quality services that enhance business performance and drive cost efficiency.

Unlocking Growth Through Integration

In a region as dynamic and complex as Asia-Pacific, any slowdown in momentum can quickly turn from inconvenience to risk.

When critical business functions like tax, accounting, payroll, corporate governance and compliance, company incorporation and sustainability reporting are managed by separate providers who don’t communicate, even high-performing teams can be slowed down by rework, missed details, and competing timelines.

Companies that want to move faster and smarter need more than a collection of vendors – they need a strategic partner. A single provider who understands the business’s entire operating environment can deliver coordinated, cross-functional support that aligns with growth.

Ready to streamline your operations and unlock your next stage of growth? Speak with BoardRoom to discover how integrated corporate services can reduce risk, improve visibility, and give you the confidence to lead with clarity.

Contact BoardRoom for more information:

Angeline Aw

Angeline Aw

Group Chief Executive Officer, BoardRoom Group

E: [email protected]

T: +65 6536 5355

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Case Study –Streamlining and Standardising Accounting Processes Across Multiple Entities for a Leading Infrastructure Development Firm

Case Study –Streamlining and Standardising Accounting Processes Across Multiple Entities for a Leading Infrastructure Development Firm

Case Study –Streamlining and Standardising Accounting Processes Across Multiple Entities for a Leading Infrastructure Development Firm

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Client Profile

Our client is a prominent infrastructure development company specialising in the early-stage development of infrastructure projects across South and Southeast Asia. Operating as part of a larger group, the company focuses on catalysing private sector investment in infrastructure sectors.

Background

Prior to engaging BoardRoom’s Accounting services, the client faced challenges in terms of fragmented co-ordination, managing multiple internal contacts across various finance activities, including document collation and head office reporting. The process of consolidating financial data at a Group level was complex, with each entity following their own individual accounting practices. This lack of standardisation was further compounded by the absence of standardised reporting templates across the Group.

The Solution

The Accounting Team at BoardRoom identified that the root of these challenges stemmed from the absence of standardised processes, which are crucial for effective multi-entity accounting.

To address this, BoardRoom implemented a structured approach, introducing the following group-wide standardisation measures across key accounting areas:

Document Collation: BoardRoom introduced a systematic approach to document collation and management.

This initiative ensured consistency in the type, format and quality of documents maintained across all entities, addressing the inefficiencies caused by varying collation methods and standards at different entities. The result was a more streamlined process that improved document collation and management across the group.

Uniform Accounting Transaction Recording: BoardRoom standardised the way accounting transactions were recorded across the Group.

By standardising the transaction recording process, all entities followed the same procedures for transaction entry and classification, reducing discrepancies between entities. This uniform approach also brought alignment to the financial practices of each entity, ensuring accurate and reliable financial data that could be easily consolidated and reported.

Implementation of a Unified Chart of Accounts: To enhance alignment in reporting across the Group, BoardRoom developed and introduced a single, standardised chart of accounts across all entities. This unified approach facilitated seamless consolidation of financial data and comparison of financial results across all entities within the Group.

BoardRoom also ensured localised adaptations of the accounts codes were incorporated where appropriate to meet local regulatory requirements, without compromising group-wide comparability.

Consistent Reporting Templates: BoardRoom developed and implemented standardised reporting templates for all entities.

These templates were designed to ensure that financial data was presented in a consistent format, allowing for easier comparison and analysis across the Group. The uniformity in reporting templates gave management a clearer view of the group’s financial health, enabling more accurate and timely decision-making.

The Results

Following the implementation of uniform processes and standardised reporting frameworks, our client's multi-entity accounting operations were significantly optimised.

Management gained a more holistic and accurate view of the Group financial position, enhancing their ability to make timely, informed strategic planning and decisions.

The streamlined processes also resulted in reduced reporting turnaround time, improved compliance with internal and external reporting standards, and laid a strong foundation for future scalability as the Group continued to expand its operations across the region.

About BoardRoom

850
Dedicated Team Members

BoardRoom offers leading business solutions, including corporate and advisory services, in the Asia-Pacific region. We provide accurate, prompt and reliable corporate solutions for every element of your business.

Over 50
Years of Proven Track Record

BoardRoom takes your business further, faster, at all stages, with an integrated suite of corporate solutions driven by innovation and technology.

7,300+
Clients Globally

Our team of experienced professionals has the comprehensive local knowledge and commercial experience you need to grow your business in the Asia-Pacific region.

Standardising Accounting Processes and Reporting for Enhanced Group-Wide Visibility

BoardRoom’s strategic approach to implementing multi-entity accounting processes has transformed our client’s financial operations. Through greater visibility, consistency operational efficiency, the client is now better positioned to drive business performance and make more informed, strategic decisions.

Contact us today to see how we can help streamline your accounting processes and empower your business to achieve a more strategic, data-driven growth.

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Accounting services in the midst of the accountant shortage

Accounting services in the midst of the accountant shortage

Accounting services in the midst of the accountant shortage

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In recent years, Singapore has faced a growing discrepancy between the demand for professional accounting services and the supply of qualified accounting graduates, which has proved challenging for businesses reliant on precise and timely financial oversight.

Yang Shuzhen, Director of Regional Accounting Services at BoardRoom Group, says the shortage of accountants in Singapore means businesses face potential operational issues, including the disruption of daily accounting functions and increased risks of non-compliance with tax and reporting requirements. These disruptions can also lead to reputational risks and strained relationships with vendors and clients due to the inability to meet financial obligations or report accurately.

Here, we explore strategic solutions, including outsourcing and professional development, to ensure businesses continue to have uninterrupted access to high-quality, reliable accounting services.

Mitigating risks with outsourced financial accounting services

The gap between supply and demand for qualified accountants is impacting organisations across the board, with a 10% decline in students pursuing accounting degrees during the past five years. In fact, it’s projected that an extra 7000 professionals will be required by 2025.

As companies grapple with this shortage, they may face operational disruptions across multiple areas of their business, such as:

Day-to-day accounting functions
The absence of key accounting staff can disrupt daily operations such as invoice management and financial reconciliation. These disruptions not only affect internal workflows but also compromise the timely execution of financial responsibilities.
Failure to meet compliance requirements
The shortage of accountants in Singapore heightens the risk of non-compliance with stringent accounting and regulatory standards, which could result in legal penalties. Maintaining a robust accounting department is crucial to avoid significant compliance risks and associated legal repercussions.
Reputational risks
Operational disruptions can lead to delays in payments and may force vendors to shorten credit terms with your company. This in turn results in cash flow management issues and may strain relationships, damaging your company's reputation with partners and vendors.
Internal and external reporting requirements
Both internal decision-making and external stakeholder transparency can suffer due to delays and inaccuracies in financial reporting. This can result in poor strategic decisions and a loss of investor confidence.
Impaired decision-making
Reliable data is crucial for evaluating performance and setting growth targets. A lack of accurate data hinders decision-making, leading to prolonged investigations into discrepancies and delaying crucial business decisions. As Shuzhen notes: “Without accurate data, making decisions about the current state and future directions becomes very difficult.”
Tax compliance requirements
Tax compliance is another critical area that could be adversely affected by Singapore’s accountant shortage. Preparing accurate tax filings and meeting submission deadlines is essential to avoid penalties and ensure regulatory compliance. With insufficient accounting staff, meeting these requirements becomes a challenge.
Outsourcing accounting business

Why outsourcing accounting could be beneficial to your business

Finding ways to mitigate the implications of the ongoing shortage of accountants is vital. That’s why outsourcing accounting services has become a key strategy for many businesses.

There are many advantages of outsourcing accounting services, beginning with repetitive, rule-based accounting tasks like accounts payable (AP) and accounts receivable (AR). This approach alleviates immediate staffing issues while also streamlining operations, allowing companies to focus on more strategic activities.

By outsourcing these routine functions, businesses can take advantage of specialised accounting services, including access to broader teams and skilled accountants who are well-versed in handling large volumes of transactions efficiently and accurately. This shift ensures continuity and reliability in financial reporting and enhances overall financial management.

Customising accounting functions

Shuzhen highlights flexibility as one of the key advantages of outsourcing accounting services. “In accounting, there’s a real ability to either fully outsource everything or just select specific tasks that are inefficient for the client to handle in-house,” she says.

Many businesses have traditionally viewed their financial operations as a single, indivisible block, adhering to an all-or-nothing approach. However, realising that these tasks can be managed independently reveals new opportunities for enhanced efficiency and specialised management.

“Clients often struggle to imagine the impact of removing a segment from their finance department, fearing that removing just one part could cause the entire system to collapse,” Shuzhen explains. “When outsourcing, there are typically specific challenges the client needs addressed, and our approach at BoardRoom isn’t to overhaul everything at once but to suggest incremental changes that enhance the overall function without disrupting the core processes.”

Process and efficiency improvement

Another reason why outsourcing accounting services is compelling for companies is the insight into best practices and innovations that dedicated professionals can bring. By applying recommended improvements, organisations can benefit from enhanced productivity, reduced operational costs, and a more strategic approach to financial management, ultimately leading to better financial outcomes.

Ensuring compliance

Outsourcing accounting functions, especially when facing internal resource limitations, also ensures that businesses remain compliant with regulatory requirements. Outsourcing firms specialise in compliance and are adept at keeping up-to-date with the latest changes in accounting standards and regulations. This is crucial for businesses operating in multiple jurisdictions or in complex regulatory environments. By leveraging the expertise of these providers, companies can avoid the pitfalls of non-compliance, such as fines, penalties and reputational damage.

Ensuring compliance

Responding to the shortage of accountants in Singapore

In tackling the challenges posed by the shortage of accountants, leveraging technology, professional development and education for staff is essential.

Enhancing efficiency with technology

Using advanced technology can streamline tedious, manual processes, thereby reducing the workload on existing staff and allowing them to focus on more strategic, high-value activities. Technologies such as AI and automated data processing can enhance efficiency and accuracy in accounting tasks.

At BoardRoom, we are actively addressing the traditional perceptions of accounting as a labour-intensive field by integrating advanced technologies such as Optical Character Recognition (OCR) and AI into our operations. In doing so, the BoardRoom team also ensures that the adoption of these technologies does not compromise stringent internal controls. Our expert staff review the outputs from automated processes to maintain high standards of financial reporting.

Investing in talent

Ongoing professional development ensures staff remain current with the latest accounting standards and practices while growing their skills in new technologies and methodologies. This kind of training boosts morale by showing investment in employees’ career growth and enhances adaptability to changing business environments.

Shuzhen underscores the importance of such initiatives, saying: “Investing in our staff’s growth not only prepares us for the future but also helps in retaining talent by involving them more deeply in the business and organisational culture.”

BoardRoom demonstrates its commitment to enhancing the skills and knowledge of its workforce through several partnerships and recognitions:

  • Recognised employer partner of CPA Australia: BoardRoom is committed to the professional growth of its employees, providing them with continuous learning and development opportunities.
  • ACCA Approved Employer: BoardRoom has achieved this prestigious status in two categories – Professional Development and Trainee Development, Gold. This highlights the management team’s dedication to nurturing their workforce.
  • Memorandum of Understanding with the Association of International Certified Professional Accountants (AICPA) and Chartered Institute of Management Accountants (CIMA): This partnership allows BoardRoom accounting staff to access industry best practices, engage with subject matter experts, explore thought leadership content and pursue top-tier professional qualifications.
  • Chartered Accountant Accredited Training Organisation (ATO): As an ATO, BoardRoom offers early employment opportunities to Chartered Accountant (CA) candidates. By hiring, training, and developing Singapore CA Qualification candidates, BoardRoom provides them with the necessary resources and support to fulfill the three-year practical experience required to qualify as a Chartered Accountant of Singapore.
Investing in talent

The way forward

As businesses navigate the evolving landscape of financial management amidst shortages and technological shifts, partnering with a company like BoardRoom can provide the expertise and innovation needed to safeguard financial operations. BoardRoom’s strategic approach to leveraging technology, combined with a commitment to continuous professional development, ensures that clients receive high-quality accounting services tailored to meet today’s challenges.

BoardRoom offers a comprehensive suite of accounting services, including regulatory compliance, financial reporting and risk management. By entrusting these critical functions to BoardRoom, companies can enhance their operational efficiency, maintain compliance with ever-changing regulations, and harness the power of cutting-edge technology in financial management. Explore how BoardRoom’s accounting services can help your company adapt and thrive in this evolving environment.

Contact BoardRoom for more information:

ShuZhen

Yang Shuzhen

Director of Regional Accounting

E: [email protected]

T: +65 6536 5355

Related Business Insights

What Are the Key Benefits of Outsourcing Accounting Services?

What Are the Key Benefits of Outsourcing Accounting Services

What Are the Key Benefits of Outsourcing Accounting Services?

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Outsourcing accounting services is a smart strategy for businesses looking to optimise their financial management processes. By assigning accounting tasks to external service providers, organisations can enjoy many advantages that can enhance operational efficiency, mitigate risks, and drive growth. In this article, we explore the key benefits of outsourcing accounting services.

Definition of Outsourcing Accounting Services

Outsourcing accountancy services involves hiring external professionals or firms to handle various financial tasks traditionally managed in-house. These tasks include bookkeeping, financial reporting, tax preparation, payroll processing, and compliance with regulatory requirements.

Cost Savings

Outsourcing accounting services results in significant cost savings for businesses through:

Reduction in Labour Costs
Outsourced accounting removes the need for hiring and retaining full-time accounting staff, and, as a result, reducing payroll expenses and associated benefits.
Elimination Of Overhead Expenses
By outsourcing, businesses avoid overhead costs related to maintaining accounting infrastructure, including office space, equipment, and software licences.
Access to Specialised Skills Without Hiring Full-Time Employees
Outsourcing grants access to a pool of specialised accounting professionals without incurring the cost of recruiting and training full-time employees.
Cost Savings

Improved Focus on Core Business Activities

Outsourcing accounting tasks allows businesses to concentrate on core business functions by:

Delegation of Non-Core Tasks
By outsourcing routine accounting functions, organisations can redirect internal resources towards strategic initiatives and revenue-generating activities.
Increased Efficiency and Productivity
External accounting firms possess the expertise to manage accounting processes efficiently, enhancing overall productivity and operational efficiency.
More Time and Resources for Strategic Decision-Making
With accounting tasks outsourced, management can devote time and resources to strategic decision-making, driving business growth and innovation.

Access to Expertise and Technology

Outsourcing accounting services provide access to expertise and technology, including: 

Access To a Team of Experienced Professionals
Outsourced accountancy services offer a dedicated team of experienced professionals well-versed in accounting best practices and industry regulations.
Keeping Up With Changing Regulations And Industry Standards
External providers stay abreast of evolving accounting regulations and industry standards, ensuring compliance and mitigating regulatory risks.
Utilisation Of Advanced Accounting Software and Tools
Outsourcing partners leverage advanced accounting software and tools to make processes more efficient, enhance accuracy, and provide real-time financial insights.
Expertise and Technology

Scalability and Flexibility

Outsourcing accounting services offers scalability and flexibility by:

Ability To Scale Accounting Services Up or Down Based on Business Needs
Outsourced providers offer flexible service agreements, allowing businesses to adjust accounting services in response to changing business requirements.
Flexibility To Adapt to Seasonal or Cyclical Demands
Outsourcing enables businesses to scale accounting operations during peak periods or scale back during off-peak seasons, optimising resource utilisation.

Enhanced Data Security and Confidentiality

Outsourcing accounting services bolster data security and confidentiality through:

Protection of Sensitive Financial Information
Outsourced providers implement strong security measures to safeguard sensitive financial data from unauthorised access or breaches.
Compliance With Data Security Regulations and Standards
External accountancy services adhere to strict data security regulations and industry standards, ensuring compliance and mitigating security risks.
Minimising The Risk Of Internal Fraud or Data Breaches
Outsourcing reduces the risk of internal fraud or data breaches by implementing secure protocols and access controls.
Data Security and Confidentiality

Risk Mitigation

Outsourcing accounting services contribute to risk mitigation by:

Shared Responsibility with the Outsourcing Provider
Outsourcing partners share accountability for accurate financial reporting and regulatory compliance, reducing operational risks for businesses.
Access To Risk Management Expertise
External providers offer expertise in risk management and internal controls, helping businesses identify and mitigate potential financial risks.
Improved Accuracy and Compliance with Financial Reporting
Outsourced accounting services enhance the accuracy and reliability of financial reporting, ensuring compliance with regulatory requirements and industry standards.

Streamlined Processes and Reporting

Outsourcing accounting services improves processes and reporting by: 

Standardisation of Accounting Processes
Outsourcing partners implement standardised accounting processes and workflows, enhancing efficiency and consistency across financial operations.
Timely and Accurate Financial Reporting
External providers deliver timely and accurate financial reports, enabling businesses to make informed decisions and monitor financial performance effectively.
Access to Real-Time Financial Insights
Outsourced accountancy services leverage advanced reporting tools to provide real-time financial insights, empowering businesses with actionable data for strategic planning and decision-making.

How Can BoardRoom Help You?

BoardRoom offers comprehensive outsourcing solutions tailored to meet your accounting needs. Our experienced professionals deliver cost-effective and efficient accounting services, allowing you to focus on driving business growth and innovation.

BoardRoom’s specialised accountancy services are designed to ensure accuracy, efficiency, and compliance with local laws and regulations. Our certified chartered accountants and finance professionals possess the skills and expertise to handle a wide range of accountancy tasks, including bookkeeping, financial reporting, tax preparation, and compliance reporting for companies in Singapore.

By outsourcing your accountancy services to BoardRoom, you can be confident that your company operates safely and efficiently, with confidence in the accuracy and integrity of your financial records.

Our trained and knowledgeable staff stay updated with the latest regulations and requirements, ensuring that your business remains compliant and well-prepared for any regulatory changes.

Partner with BoardRoom to leverage our expertise, technology, and commitment to excellence in financial management. For more information on how BoardRoom can assist you with your accountancy needs, contact us for a quote now.

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What Factors Should Businesses Consider When Choosing the Right Accounting Firm?

What Factors Should Businesses Consider When Choosing the Right Accounting Firm

What Factors Should Businesses Consider When Choosing the Right Accounting Firm?

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In this guide, we explore the important factors businesses should consider when selecting the right accounting firm to manage their financials effectively.

Importance of Choosing the Right Accounting Firm

Choosing the right accounting firm is important for businesses. Accounting firms manage the financials of the company, ensure regulatory compliance, and provide strategic guidance. By partnering with the right firm, businesses improve operations, make informed decisions, and achieve their long-term objectives. The right accounting firm serves as a trusted advisor, offering invaluable insights and support for sustained success and growth.

Services Offered

When choosing an accounting firm, assessing the range of services offered is essential.

Assess the Range of Accounting and Financial Services Provided
Determining if the accounting firm offers a comprehensive range of services, including accounting and bookkeeping, preparation of financial statements, filing of annual return and tax preparation, can meet your company’s current needs and accommodate future growth.
Determine If the Firm Offers Cross-border Services That Align With Your Needs
Identifying any cross-border requirements within the business will be a factor when selecting the right accounting firm. Firms that provide global accounting, or international tax planning and advisory allows businesses to access the depth of expertise and resources available that can support them effectively.
Consider Additional Services Like Tax Planning and Consulting
Exploring proactive tax planning strategies and consulting services enable businesses to optimise their tax position, minimise liabilities, and make informed financial decisions.
Industry Knowledge and Expertise

Industry Knowledge and Expertise

When selecting an accounting firm, industry-specific knowledge and expertise are key factors to consider.

Understand the Firm’s Understanding of Your Industry’s Unique Accounting Requirements
Businesses should evaluate the accounting firm’s familiarity with industry-specific accounting standards, regulations, and reporting requirements to ensure the effective delivery of tailored solutions.
Evaluate the Firm’s Knowledge of Relevant Regulations And Compliance Standards
Ensuring that the accounting firm stays updated on regulatory changes and updates relevant to the industry is important for maintaining compliance and minimising risks associated with non-compliance.

Reputation and Experience

When selecting the right accounting firm, businesses must prioritise the service provider’s reputation and experience.

Research the Firm’s Reputation and Track Record
Before making a decision, businesses should thoroughly research the accounting firm’s reputation by examining client testimonials, reviews, and industry accolades to confirm its reliability and trustworthiness.
Evaluate the Firm’s Experience in Serving Businesses In Your Industry
Businesses need to evaluate the accounting firm’s experience in assisting enterprises similar in size, industry, and complexity to ensure they have the expertise and resources to address industry-specific challenges effectively.
Check for Any Relevant Certifications or Accreditations
Verifying that the accounting firm holds relevant certifications, such as Certified Public Accountant (CPA) or industry-specific accreditations, is important to ensure compliance with professional standards and quality assurance.
Reputation and Experience

Team and Staffing

The way the team works together and how they interact with clients play an important role in the effectiveness of an accounting firm.

Evaluate the Qualifications and Experience of the Firm’s Professionals
Reviewing the credentials and industry experience of the firm’s professionals ensures the availability of a diverse team with the expertise necessary to meet business needs effectively.
Determine the Firm’s Staff-To-Client Ratio and Availability of Resources
Assessing the firm’s ability to utilise resources effectively enables businesses to determine if it can scale its team and services according to their evolving requirements effectively.
Assess the Firm’s Approach to Client Communication and Relationship Management
Evaluating the firm’s communication protocols and responsiveness ensures proactive communication and personalised attention to client needs effectively.

Cost and Value

Understanding the financial aspects of engaging with an accounting firm is essential for businesses to make informed decisions.

Understand The Firm’s Fee Structure and Pricing Models
Requesting a transparent breakdown of the firm’s fee structure enables businesses to clarify the scope of services covered accurately.
Evaluate the Value Provided in Relation to The Cost
Assessing the overall value proposition offered by the firm enables businesses to consider the quality of service and expertise effectively.
Consider the Potential for Long-Term Cost Savings and ROI
Identifying opportunities to improve financial performance helps businesses see how partnering with the firm can make a difference.

Client References and Reviews

When considering an accounting firm, it’s important for businesses to gather insights from other clients and assess the firm’s reputation.

Seek References from Current or Past Clients of The Firm
Requesting client references allows businesses to validate the firm’s ability to deliver results effectively.
Read Online Reviews and Testimonials
Evaluating the firm’s reputation and credibility enables businesses to consider the overall sentiment effectively.
Consider Feedback on The Firm’s Responsiveness and Client Satisfaction
Assessing proactive problem-solving and commitment to client satisfaction enables businesses to evaluate service quality effectively.

Accessibility and Communication

Evaluating how well the communication style and accessibility is crucial for seamless collaboration when choosing an accounting firm.

Determine If the Firm’s Communication Style Matches Your Preferences
Assessing how communication is conducted ensures compatibility with businesses’ preferences.
Assess The Firm’s Responsiveness to Inquiries, Requests and Consultations
Assessing the firm’s responsiveness to inquiries and requests allows businesses to evaluate proactive engagement effectively.
Consider The Ease of Collaboration and Compatibility with Your Team
Considering if your team works well together is important. A single point of contact helps in ensuring that collaboration can be maximised in the most efficient manner.
Accessibility and Communication

Technology and Tools

In today’s digital age, the use of technology is crucial for efficient accounting processes.

Assess the Firm’s Use of Accounting Software and Technology
Inquiring about the accounting firm’s technology infrastructure, including accounting software and cybersecurity measures, ensures efficient technology integration into its workflow.
Determine If the Firm Is Up to Date with Industry Trends and Advancements
Evaluating the accounting firm’s commitment to staying current with emerging technologies and industry trends enables businesses to leverage technology-driven solutions effectively.
Consider the Firm’s Ability to Leverage Technology for Efficiency and Accuracy
Assessing how the accounting firm uses technology in its workflow enables businesses to evaluate its ability to deliver tangible benefits effectively.

Security and Confidentiality

Maintaining strong security measures and upholding client confidentiality is important for any accounting firm.

Ensure The Firm Has Robust Data Security Measures in Place
Inquiring about data security protocols ensures compliance with industry regulations effectively.
Evaluate The Firm’s Policies Regarding Client Confidentiality
Reviewing confidentiality agreements ensures strict confidentiality effectively.
Consider Any Compliance Requirements Specific to Your Industry
Discussing compliance requirements ensures industry-specific expertise effectively.

How Can BoardRoom Help?

With over 50 years of track record and more than 7,300 clients globally, BoardRoom offers a full suite of outsourcing solutions tailored to meet your accounting needs. Our experienced professionals and certified chartered accountant ensure accuracy, efficiency, and compliance with local laws and regulations. Their expertise includes bookkeeping, financial reporting, tax planning and advisory, and compliance reporting for companies in Singapore.

Don’t take our word for it – read what our clients say about our services. For more information on how BoardRoom can assist you with your accountancy needs, contact us for a quote now.

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The power of BPO in facilitating overseas business growth

The power of BPO in facilitating overseas business growth

The power of BPO in facilitating overseas business growth

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Expanding a business overseas is a critical growth goal for many organisations. The appeal of new markets is enticing, but the challenges of moving into offshore territories can be overwhelming.

Understanding and complying with diverse, unfamiliar legal frameworks, tax structures and regulatory compliance standards in foreign territories is a complex process, and non-compliance can result in far-reaching consequences for any business. For owners, entrepreneurs and leaders keen to pursue overseas opportunities but needing an in-depth understanding of local issues, specialist business process outsourcing (BPO) services can be essential to safe and successful expansion.

Through a BPO partner, businesses gain insights into local compliance and strategic support in navigating the intricate process of establishing and growing your presence in new markets.

In this article, we explore what a BPO provider is, what they do for their clients, and how BPO can help clients navigate regulatory complexities when considering expansion into Asia.

What is BPO? Your key to successful international expansion

Running a business, especially one that is expanding globally, is complex and can be fraught with compliance risks. Missteps in unfamiliar areas can lead to significant consequences, demanding careful navigation, knowledge and skills. That is where business process outsourcing (BPO) comes in. BPO occurs when a business outsources critical backend functions to external entities.

However, it’s important to recognise that certain functions will come with an increased need to find a provider that specialises in regulatory compliance.

Some of these functions are:

When you engage an expert BPO service provider with specialised skills in regulatory compliance to outsource these critical functions to, your staff can concentrate on your business’s core competencies. By working with an expert provider and also being aware of how each function interplays with your company’s broader operations and expansion goals, risk can be mitigated, ensuring the integrity and continuity of your core business activities.

There are several fundamental advantages of partnering with a compliance focused BPO provider:

Access to specialised skills and local knowledge that may not be readily available within your organisation. This expertise ensures accuracy in compliance and allows easier navigation of in-country requirements and valuable insights into local markets.
Efficiently scale operations especially when expanding internationally, by tapping into vast pools of experienced professionals through the services provided.
Gain access to advanced technologies compliant with regulations, allowing optimisation of internal processes, guaranteeing streamlined operations, while mitigating the risk of non-compliance.
Benefit from a commitment to adapt to changing regulations while maintaining stringent compliance standards, mitigating risks, and ensuring continuous agility in navigating a dynamic regulatory environment.
Your key to successful international expansion

Navigating your expansion into Asia

Asia’s robust economic growth and diverse markets make it an increasingly attractive destination for business expansion. In this rapidly growing business environment, understanding the key factors crucial for successful business expansion is pivotal for tapping into the region’s unique opportunities.

Here are four important factors to look out for in selecting your BPO provider:

The complexity of local regulations

Business owners entering new markets in Asia must understand that the regulatory landscape in the region has evolved and continues to evolve rapidly. Hugo Walkinshaw, Group Chief Executive Officer of BoardRoom, has this advice for foreign investors entering Asia. “There’s some commonality among Commonwealth countries, but you cannot assume if you have a footprint in one country, you can easily take that elsewhere. We advise businesses to be aware that Asia’s not one place.”

Just as every country has a unique culture, language, time zone and climate, so too are its regulatory framework, laws, processes and ESG standards. Therefore, it is recommended you get advice from a BPO provider who has the experience in regulatory compliance and deep relationships with the regulators in the country you are planning to enter.

Owners and business leaders who fail to consider the complex regulations are putting their personal and business reputations at risk.

Compliance focused BPO provider

Leveraging technology in an evolving regulatory landscape

Technology is changing how businesses operate, and the regulations that govern technology are also evolving rapidly. This complexity is magnified in Asia due to the diverse legal and technological landscapes across different countries.

An example is data security, which has become increasingly complex in a rapidly-digitised world where data is valuable, and automation is commonplace. Businesses have a duty of care to themselves, their staff and their customers to protect data and information systems. A service provider with sound security systems in place is an essential layer of protection to your business, ensuring compliance with local data protection laws. This is especially crucial for functions like payroll, where sensitive employee data must be handled with care and accuracy across different legal frameworks.

Partnering with a compliance-focused service provider who understands these regulations and leverages the latest technology provides assurance that compliance requirements are consistently met.

Geopolitical and economic concerns

The Y2K scare, the 1997 Asian crisis, the 2007-08 Global Financial Crisis and COVID-19 – the past two decades have been punctuated by massive economic uncertainty and geopolitical volatility. These factors make for an increasingly complex environment for businesses. However, Hugo says economic opportunities in the region are still compelling.

A corporate services provider that offers an integrated suite of services across multiple countries can leverage regional expertise and serve as a single point of contact for businesses moving into Asia. Furthermore, businesses ought to seek a seasoned provider with a appropriate market presence that is aligned with your expansion goals. These providers will have first-hand experience navigating legislative changes and are better positioned to address the needs of businesses amidst volatile geopolitical and economic uncertainty.

Ensuring the right coverage

When choosing a BPO provider, it is important to understand their size and scale. What services do they provide, and which countries do they operate in?

Businesses entering Asia will find many providers that Hugo calls “single-service, single-country local players”. But these might not offer a comprehensive enough service for your business. Choosing a provider that operates in several countries with a range of services is often a better option, allowing your business to enter whichever country you decide to expand into.

Furthermore, a service provider with regional expertise and integrated services like corporate secretarial and tax advisory can also help optimise your business’s tax payouts. This starts at the incorporation stage with the advice on the most advantageous business structure. Different business structures have varying tax implications, and a knowledgeable service provider can navigate these intricacies to ensure that your business benefits from tax efficiency while remaining compliant.

Leveraging technology in an evolving regulatory landscape

BoardRoom: your compliance focused BPO partner

Successfully establishing a business in Asia requires a deep understanding of its laws and regulatory structures. Regulatory compliance-focused BPO service providers equipped with this expertise offer invaluable guidance to help businesses navigate the complexities of regional expansion. They take on the responsibility of a range of business processes, freeing up your time and resources to grow your business.

At BoardRoom, we have the regional expertise to help your business navigate the complex regulatory landscapes and technology integration in various Asian nations.

Our multi-service offering and our years of experience managing cross-border expansion means you get integrated, efficient solutions to help your business succeed:

Contact our team for your expansion needs now!

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How cash flow forecasts and reporting can help your business through turbulent times

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How cash flow forecasts and reporting can help your business through turbulent times

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Amid economic uncertainty and volatility, businesses face unique challenges that can significantly impact their financial stability and long-term viability. Chief among these is ensuring sufficient levels of available cash, which is why understanding your business’s current and projected cash flow is crucial.

Ahead, Yang Shuzhen, Director of Regional Accounting for BoardRoom Singapore, explores the cash flow forecast and reporting strategies and key finance metrics that can help strengthen your business’s resilience in demanding times.

Why cash flow reporting is vital for business success

The preparation of cash flow reports promotes good financial management in several ways. Importantly, they gauge your business’s ability to generate cash and use available cash to meet its obligations – both of which are necessary for surviving and thriving amid an economic downturn.

“Put simply, if you don’t have enough money available, you cannot pay for expenses,” says Shuzhen.

The proper tracking of cash inflows and outflows is critical, as it enables businesses to:

  • gain real-time insights into their financial position;
  • create data-driven cash flow forecasts for nimble, informed decision-making and forward planning;
  • identify potential cash shortfalls and take proactive measures to address them;
  • capture opportunities for investment, expansion or increased remuneration where excess cash reserves are identified; and
  • have transparent, trust-building discussions with lenders, investors and suppliers.
Cash flow vital for business success

The requirements for cash flow forecasts and reporting in Singapore

According to the Singapore Financial Reporting Standards, understanding an entity’s cash flows helps users of financial statements evaluate its cash generation capability, needs, and timing. The objective of this Standard is to require the provision of information about the historical changes in cash through a categorised cash flow statement encompassing operating, investing, and financing activities.

Businesses can assess their cash flow situation via the direct method of reporting, which records actual cash receipts and payments, or the indirect method, which adjusts the net profit or loss for non-cash items.

“They can also monitor cash inflows and outflows in their day-to-day operations to understand their net cash flow and forecast future cash availability,” Shuzhen says.

Companies must report their cash flows under three main categories: operating activities, financing activities and investing activities.

“This allows your finance team and stakeholders to understand cash inflows and outflows for each category and make decisions from there,” Shuzhen explains. “For example, investors can decide whether they want to continue investing, depending on their risk appetite.”

Cash flow forecasting and reporting

The difference between unlevered free cash flow and levered cash flow

Free cash flow refers to the amount of cash your business has after accounting for its capital expenditures.

It can appear on your balance sheet as either:

  • Unlevered free cash flow (UFCF) – This is the amount of money your business has available before meeting its financial obligations (eg. debts, expenses, taxes and interest payments). UFCF shows your gross free cash flow and is an important figure for investment bankers, potential buyers and executive staff.
  • Levered free cash flow (LFCF) – This is the amount of money your business retains after meeting recurring short- and long-term financial obligations. LFCF shows what cash can be put towards investments and building equity and is of interest to bankers, buyers, internal staff and board members.

Using these two metrics in your cash flow reporting can help you manage your finances effectively and tailor your cash flow statements for particular stakeholders. However, many Singaporean businesses prefer to assess their cash flow based on the liquidity of their assets.

Best practice for elevating your cash flow management

To support financial stability and growth in times of economic growth or downturn, consider implementing the following cash flow management practices within your organisation.

Reduce expenses and optimise credit terms
Assessing your credit terms can be useful for addressing predicted cash shortfalls. Many businesses stretch payment timelines with vendors while softening credit terms with customers. Other potential strategies for increasing available cash include securing additional funding sources, diversifying revenue streams and exploring alternative vendors.
Optimise excess fund
Explore various market instruments to make the most of your liquid cash. These may be investment opportunities that offer lower interest rates, shorter maturity periods and easy cash access while also generating additional incidental revenue.
Employ robust accounting practices
Employing comprehensive accounting practices that encompass meticulous cash flow tracking, transparent reporting, and forward- looking projectional forecasting is indispensable for navigating financial complexities and enables data-driven decision making.
Use proper accounting software
In contrast to non-specialised software like Excel, advanced accounting programs like BoardRoom’s partner platform Xero leverage automation and AI technology to streamline financial processes (eg. manual checking), reduce human error and provide precise, real-time visibility of cash flow.
Regularly analyse cash flow data and projections
Historical cash flow statements and cash flow forecasts can provide valuable insights into your financial performance. They can empower you to develop realistic budgets, set achievable financial goals, pinpoint areas for improvement, and make informed decisions about new investments, risk mitigation and resource allocation – resulting in greater control over your financial outcomes.

Partner with a professional accounting team

Engaging outsourced accounting services can help you improve your cash flow management while ensuring compliance with Singapore’s financial reporting standards.

For example, many businesses perform their bank reconciliation monthly. This can create difficulties for your finance team, who may need to manually check thousands of transactions and investigate missing or incorrect deposits at the end of the month (particularly if your business receives daily deposits).

According to Shuzhen, BoardRoom’s Accounting Services team often recommends that clients do their bank reconciliation weekly instead.

“For businesses who we’re helping to manage vendor payments and track funds coming in from customers, doing bank reconciliation weekly, or even daily, gives them a more regular picture of cash inflow and outflow,” she says. “This is especially the case if they use a POS system, which often results in a timing difference between transactions recorded in the POS system and the bank statements.”

Enhancing your cash flow tracking with strategies like this is just one way that external accounting support can help make your cash flow management easier, faster and more accurate.

If your organisation operates across borders, an international accounting and tax firm can also assist with complex processes such as foreign currency cash flow management.

Partner with a professional accounting team

Enhance your cash flow reporting with professional support

During turbulent times, businesses that prioritise robust cash flow management gain a competitive advantage, enabling them to weather economic storms and emerge stronger in the face of adversity.

As one of the Asia-Pacific region’s most trusted accounting services providers, BoardRoom has the skills, expertise and experience to boost the accuracy and efficiency of your cash flow management – bolstering the operational resilience of your business.

Our professional team possesses deep, up-to-date knowledge of regional accounting regulations and standards to help satisfy your cash flow management and reporting obligations.

Contact us today to discuss how we can help position your company for long-term success.

Contact BoardRoom for more information:

ShuZhen

Yang Shuzhen

Director of Regional Accounting

E: [email protected]

T: +65 6536 5355

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Why Your Business Needs Accounting Services in Singapore

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Why Your Business Needs Accounting Services in Singapore

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Accounting is one of the essential functions your business requires for robust financial management, no matter how small or large your company is. However, many business owners still engage an in-house accounting team to take care of these tasks. This not only takes up their valuable time but also heightens the risk of compliance issues that could cost their business in the long run. 30% of Singapore start-ups fail within the first three years, and poor financial management is one of the principal causes.

In Singapore, there are a number of accounting requirements your business needs to fulfil if they don’t want to be penalised, which could be stressful for your company to manage and be compliant with if you are low on resources.

This is where outsourced accounting services rise to the forefront. Outsourcing professional accounting services offers a multitude of benefits that go beyond just bookkeeping. These services help facilitate the financial operations and planning of your company, allowing for better management, cash flow, and compliance, whilst giving you more time to focus on your core business goals.

Discover what different types of accounting services are essential for business success, ranging from advisory to tax filing, and why getting them outsourced to a reputable accounting firm is pivotal to propelling your company to even greater heights.

Types of accounting services

There are numerous services that fall under the blanket of accounting, all of which need to be paid careful attention to in order for your business to run smoothly and efficiently. When you engage an outsourced accounting service provider, you should ensure they can deliver the following essentials:

  • Tax Accounting & Planning: Supports with all taxation-related matters, including but not limited to tax filing, tax preparation, and tax strategy.
  • Bookkeeping: Provides regular maintenance of all your company’s important records, reports, statements, and so on.
  • Statutory & Governmental Compliance Reporting: Ensures your company is operating in accordance with local laws, such as preparing financial statements in XBRL format.
  • Management Accounting: Conducts business analysis, identifies trends and opportunities, and advises on long-term strategies.

Accounting services: understanding why to outsource

What with all the different components of accounting, a high level of effort and expertise is required in order to carry out all these tasks correctly and in a timely fashion. Doing this in-house could prove to be a huge strain on many businesses, potentially resulting in errors and inefficiencies. By outsourcing these services to a professional accounting team, your company can effectively relieve all of these stresses, giving you access to individuals proficient in various areas of accounting, be it tax management or bookkeeping. This opens up the possibility of a range of benefits for your business, such as:

  • Staying compliant with statutory requirements and regulations
  • Saving on hiring costs and recruitment training time
  • Enjoying professional accounting advisory services from experts in the field
  • Gaining a clearer picture of your company’s financial health to make informed decisions
  • Maximising your tax savings and deductions
  • Establishing an organised and automated accounting flow

What is the upside of accounting advisory services?

Accounting advisory services guarantee your business gets the best, most credible advice on any accounting issues you need to handle, no matter how technical or specific these instances may be. By nature, professional accountants have extensive knowledge of all aspects of financial reporting processes in accordance with local laws, which includes the Singapore Financial Reporting Standards (SFRS). They will also keep your business up-to-date with all the latest rules and regulations, making sure you know what is going on at all times, and thus ensuring you stay compliant in a field that is constantly evolving and changing.

What can accounting and bookkeeping services do for my business?

Bookkeepers in an accounting firm can help you to keep a record of general ledger reports, trial balances, profit and loss statements, balance sheets and schedules.

Bookkeeping also involves bank reconciliations, which compares your accounting data to what the bank has recorded, helping to identify any discrepancies in your records or possible transaction errors.

An accounting firm doing your bookkeeping also ensures that all relevant documents and information (financial statements, tax computation and supporting schedules, comprehensive profit and loss statements) are kept for easy reference. This helps to speed up the retrieval of documents for statutory reporting and filing of taxes.

With thorough and updated bookkeeping services, you can swiftly identify problems related to revenue and cash flow early, helping to avoid any adverse impacts on your business if otherwise left unchecked.

Why does my company need statutory accounting and tax compliance reporting services?

As your business grows, there will be a myriad of legal obligations your company has to comply with. These obligations include the notification of changes of share capital if new shareholders or directors are added or removed, as well as the meeting of tax and accounting requirements that could change depending on your business model and activities.

Another key obligation is the filing of year-end financial statements and board resolutions that are needed by Singapore’s Accounting and Corporate Regulatory Authority (ACRA).

A credible accounting firm assists you in the understanding of convoluted statutory requirements and ensures that you comply with the laws.

The last thing you want is an audit by IRAS digging through your past records, wasting even more of your resources and time or worse – issuing a hefty fine to your company for non-compliance and/or errors!

How can tax and accounting planning services help my business?

While staying compliant is of critical importance, outsourcing your tax and accounting services in Singapore allows you to enjoy tax breaks and exemptions that you might have been unaware of, whilst helping you develop long-term planning strategies to help you achieve significant tax savings over time.

To claim certain tax rebates and business expense deductions, you must meet a set of qualifying conditions. Many nuances are involved in obtaining these deductions successfully and legally.

Moreover, if you conduct business overseas, there are numerous tax treaties that you may be unfamiliar with. This could lead to double taxation, causing you to pay more taxes than you need to.

A professional accounting firm can advise you on all the tax benefits you are entitled to along with helping you obtain them so that you minimise costs and keep profits high.

If your business is spread across different locations, these services can also evaluate the tax consequences of cross-border transactions to improve your company’s tax position, having a breadth of knowledge of different jurisdictions. In short, they are readily equipped to support and advise on all your tax accounting needs.

How will management accounting services help my business?

Accounting doesn’t just keep you compliant with regulations, it is also a component of good business management that can help your company to grow.

A regional accounting firm has management accountants that can conduct a business analysis of past and present accounting data, as well as help analyse different sales channels, products, services, marketing activities and business models.

Management accountants will analyse the basic data and make forecasts, budgets, performance measurements and plans, then present them to senior management to assist in its operational decision making. A management accountant may also identify trends and opportunities for improvement, improvement, analyse and manage risk, arrange the funding and financing of operations and monitor and enforce compliance.

By staying up to date with industry trends, management accounting can provide and advise on long-term strategies that enable you to surpass your competitors and achieve your business objectives.

Do accounting services include accounting software?

As part of their service offerings, some outsourced accounting firms use specialised accounting software to streamline business operations – such as Xero Cloud Accounting System, which BoardRoom can help set your business up with as a Xero Platinum Partner.

It takes more than just getting the software set up in order to boost your accounting efficiencies, which is why working with a team of experts who are well-versed in the accounting system’s implementation is crucial. By assisting with set-up and optimisation, your company can then fully leverage the benefits of accounting software, whilst having peace of mind that your financial data has been transferred securely and correctly.

Choose BoardRoom as your outsourced accounting services provider in Singapore

Whether you’re running an SME or are part of a multinational organisation, hopefully this article has helped you better understand why your business will appreciate the advantages of outsourced accounting services.

At Boardroom, we are experts in accounting, helping companies from corporations to fast-growing SMEs, with their accounting outsourcing, allowing them to focus on what matters – growing their business and getting more clients.

From handling tax accounting to managing statutory compliance reporting for companies in Singapore and across Asia-Pacific, we help companies with our full suite of accounting services, allowing them to remain compliant, maximise their tax benefits and stay organised in their bookkeeping.Contact us today and empower your organisation with greater freedom through our accounting solutions.

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The Accounting and Tax Trends that are strengthening Singapore’s Economic Growth Prospects

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The Accounting and Tax Trends that are strengthening Singapore’s Economic Growth Prospects

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As a global hub for trade, finance and technology, Singapore presents a wealth of growth prospects for businesses looking to expand throughout Asia. Its high-income economy, low corporate tax rate and abundance of business incentive programs (such as the tax exemption scheme for new companies) further enhance its appeal in the eyes of foreign investors.

The Monetary Authority of Singapore has predicted that Singapore’s economic growth will slow down in 2023, which means your organisation’s resilience is now vital. Building this required resilience necessitates a robust understanding of the latest trends in tax and accounting.

Particularly in the face of increasing expectations for environmental, social and governance (ESG) action – bolstered by the government’s newly shortened timeline for achieving net zero emissions – prompting finance teams to elevate their sustainability reporting.

BoardRoom Singapore’s Director of Accounting, Yang Shuzhen, discusses the most significant tax and accounting trends in 2023 and the strategies you can use to prepare for economic change.

Singapore business tax trends

Singapore business tax trends

The 2023 Budget contained several significant tax updates that will impact the corporate sphere. Notably, the government announced its plans to implement the Global Anti-Base Erosion rules of the OECD/BEPS two-pillar plan.

Developing tax trends in Singapore businesses therefore include:

The introduction of a domestic top-up tax
Preparation by businesses for Pillar Two
Fresh tax incentives
The Singapore GST increase, now already in effect

1. The introduction of a domestic top-up tax

Under Pillar Two, the new minimum Singapore corporate tax rate will be 15% for multinational companies with revenues of at least EUR 750 million. These group entities will need to redress their profits so they are paying a minimum effective tax rate of 15%.

Countries involved in the OECD/BEPS collaboration are still deciding on their approach to implementing Pillar Two. Once the government of each country that your organisation has a presence in has announced how it will implement Pillar Two, you can decide in which country you will pay the top-up tax.

2. Preparation for Pillar Two

The best thing businesses in Singapore can do right now is to undertake an audit to identify where they are conducting their value-creation activities. It is a good time to tidy up your operations and ensure that both your value creation activities and your revenue and profits are recognised in the same country.

In Singapore, the new top-up tax is scheduled for implementation from 2025. Preparing for this change may require major adjustments to business operations, so organisations should begin the process now to ensure a smooth and successful transition.

3. Fresh tax incentives

The 2023 budget announced the following tax incentives to encourage foreign investment and economic growth:

  • Corporate Income Tax rate remains the same, with the partial tax exemption on the first $200,000 of a company’s chargeable income;
  • a 200% tax deduction on qualifying market expansion and investment development expenses under the DTDi scheme;
  • an additional tax allowance for businesses that incur qualifying fixed capital expenditure on approved projects under the IA scheme;
  • 100% IA support on the amount of approved capital expenditure and net of grants for approved automation projects;
  • concessionary tax rates of 5%, 10%, 12%, and 13.5% on income from qualifying banking and financial activities, and corporate and advisory services under the FSI scheme;
  • the introduction of a new Enterprise Innovation Scheme to raise tax deductions to 400% on qualifying expenditure incurred from the YA 2024 to YA 2028 on various innovation boosting activities; and
  • enhancements to the double tax deduction for internationalisation DTDi Scheme.

The budget also announced extensions for a range of incentive schemes across various industries.

View our Singapore 2023 Budget Tax Highlights for a complete list of announced tax updates.

4. The Singapore GST increase

Singapore’s goods and services tax (GST) rate rose from 7% to 8% in 2023. This rise has impacted businesses in various ways, with many organisations facing increased costs across core expenses such as materials, labour, rent and utilities.

Some businesses are choosing to register for GST to claim on the GST paid for purchases. However, there are a few factors to consider to determine whether this is worthwhile for your organisation. For example, you should decide whether the associated compliance costs outweigh the benefits of claiming on taxes paid. Additionally, you must be mindful when fulfilling your compliance requirements for quarterly GST returns to avoid making an error and being penalised for it.

The GST rate is set to rise another percentage point from 2024, which means your decision to register for GST will only become more important.

Singapore accounting trends

Singapore accounting trends

The accounting function is quickly evolving in response to changes in economic growth and environmental sustainability matters, as well as technological advancement.

In Singapore, this transformation is largely characterised by the following three trends:

  • the digitisation and digitalisation of financial management;
  • the provision of meaningful corporate disclosures; and
  • the rise of sustainability reporting.

1. The digitisation and digitalisation of financial management

The COVID-19 pandemic accelerated digital transformation of many vital business functions, including accounting. Now, businesses have the opportunity to use innovative digital technologies to promote efficiency, productivity and stability in volatile times.

For the best results, consider breaking the digital transformation of your accounting function down into three parts:

  • managing your human resources, including the training your people need to utilise new software and follow new processes;
  • selecting the right accounting software depending on your business needs and implementing it effectively; and
  • refining your processes post-implementation for improved results and reduced risk.

2. The provision of meaningful corporate disclosures

Singapore’s Financial Reporting Standards are updated every year, meaning businesses must constantly elevate the quality of their corporate disclosures to maintain compliance. Fortunately, digital advancement is creating opportunities for improved data collection and analysis.

Beyond standard facts and figures, regulators are now demanding more qualitative information in business reports.

“Businesses need to ask themselves, ‘Through our processes, how do we keep track of the narratives and qualitative information we need to satisfy compliance requirements?’” Shuzhen says.

In addition to reducing your business’s compliance risk and improving its reputation, strengthening your disclosures with data-driven insights will also enhance your understanding of your business’s health and outlook.

Business leaders who facilitate strong financial forecasting are empowered to:

  • make informed decisions about the strategic direction of the business; and
  • bolster the confidence of stakeholders by advising them of what is to come.

3. The rise of sustainability reporting

Businesses in Singapore are under pressure from regulators, consumers, shareholders and workers to produce insightful ESG reports. Most accounting teams are already publishing valuable ESG-related information in their financial reports, so they are well positioned to help demonstrate the ESG efforts of businesses through sustainability reporting.

Business leaders can empower their accounting teams to deliver timely, high-quality sustainability reports by implementing procedures for collecting specific ESG data that aligns with stakeholder expectations.

Remember that upgrading your data collection processes can be a complex, time-consuming endeavour, especially amid shifting regulatory demands. The earlier you establish procedures to capture the right data, the easier it will be to file your reports at the end of the financial year.

Skills finance professionals need in 2023

Skills finance professionals need in 2023

This year, tax and accounting professionals can support businesses to prepare for uncertainties in Singapore’s economic growth by embracing innovation and expanding their skill set. The key competencies finance teams now require are twofold.

1. An open and adaptive mindset

“Accounting teams need to be open to exploring new software and using the built-in functionality to understand how it could help them generate financial statements,” Shuzhen says.

“Gone are the days when accountants would merely key in numbers. Modern systems such as Xero can now take care of much of the groundwork traditionally done by accountants, such as capturing and generating data.”

Numerous accounting software options are available to businesses today, so it is important to consider which programs will best serve your needs. Understanding the types of data you need to collect will help you determine which systems are strong enough to generate the information you need.

Business leaders who are hesitant to explore new functionalities serve to limit the possibilities for what their teams can achieve and may struggle to navigate shifts in Singapore’s economic growth trajectory.

2. Well-developed analytical skills

Now that many transactional and data-collection tasks can be automated, modern finance professionals are able – and expected – to take a more strategic role within businesses. “They now have more time to spend on analytical work and quality reporting,” Shuzhen says.

A recent global survey showed that, in 2023, just under half of C-suite and finance professionals in Singapore plan to invest in data analytics capabilities to make better decisions using data. Accounting teams with data analytics skills can make strategic recommendations for optimising operations to minimise the impact of external disruptions and promote business recovery.

Finance professionals should also be able to present data in meaningful ways to specific stakeholder groups – thus maximising the value of the available data.

“For example, if I report to a Finance Manager, they will want to go through all the details, line by line,” Shuzhen explains. “But if I present the information to a Chief Financial Officer, I will do this in the form of a flash report that shows EBITDA and provides some analysis on the ratios important to the business.”

Drive business success in Singapore

For over 50 years, BoardRoom has been helping businesses achieve their expansion goals with our holistic approach to corporate services. Our teams possess in-depth knowledge of local business environments throughout the Asia-Pacific region, which means we can help you consolidate multinational taxes and manage cross-border accounting to ensure strong local compliance, reduce risk and enhance efficiency.

When you engage our expert tax advisory and filing and accounting services, you will also start saving time and money that can be redirected to progress core business objectives.

To find out more, please contact us today.

Contact BoardRoom for more information:

ShuZhen

Yang Shuzhen

Director, Accounting & Tax

E: [email protected]

T: +65 6536 5355

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