5 ways outsourcing accounting can boost financial health

Outsourcing your accounting can save your business time and money

5 ways outsourcing accounting can boost financial health

5 ways that outsourcing your accounting function can boost your company’s financial health

“Essential but not efficient”…

If that sounds like an accurate description of your company’s accounting function, it might be time to consider outsourcing to a specialist accounting services provider.

Not only will you gain more time to focus on business growth, but it can also be a more efficient use of your company’s resources. Perhaps the idea of outsourcing your accounting, tax and bookkeeping responsibilities sounds appealing, but you wonder how to make it work for your company’s unique needs.

If so, this article will take you through the top five ways that outsourcing your accounting function can boost your company’s financial health.

What is Outsourced Accounting?

Outsourced Accounting is when an organisation chooses to use an accounting service provider to manage the accounting and financial functions of its business. By outsourcing these functions, the business reduces the need for an in-house accounting department and allows these owners to focus on their business.

Accounting firms offer a variety of services, which may include bookkeeping, financial reporting, management accounting, tax preparation, accounts payable and receivable, debt collection, cashflow management and reporting, and other related services such as payroll processing. Whether you need a short-term solution or a permanent resolution, outsourcing your accounting is an effective go-to option infast-moving business environments such as Hong Kong.

The outsourced accounting firm takes on the day-to-day accounting tasks and ensures that financial records are accurate, compliant with regulations, and up-to-date. They may use accounting software and systems to streamline processes, automate tasks, and provide timely financial information and reports to the client.

Who is Outsourced Accounting for?

With advancements in technology and remote work capabilities, companies of all sizes can benefit from outsourcing accounting.

Smaller businesses, growing companies and not-for-profit organisations may consider outsourcing their accounting. It allows them to access specialised expertise, reduce overhead costs, ensure compliance, and focus on their core competencies while leaving their accounting needs in the hands of experienced professionals.

In addition, business owners who require temporary accounting help can consider outsourcing their accounting. Services that can be outsourced can range from accounting audits or end-of-year reporting for these cases.

Regardless of your organisation’s size, outsourcing your accounting functions can offload these tasks to professionals in the field and benefit from cost savings, access to expertise, improved efficiency, and scalability.

01 Get access to expert accountants without increasing salary expenses

Instead of accumulating overheads with an in-house accounting team, you will create cost savings by outsourcing to an expert services provider.

This gives you access to a team of accounting professionals without needing to spend on recruitment, training, wages or employee benefits.

Our team of professional chartered accountants at BoardRoom can streamline your accounting function while ensuring you meet all of your compliance obligations.

02 Gain clearer insights to support your business growth

Outsourcing to a credible accounting firm can help you better understand your company’s receivables, credits and collections. This, in turn, can generate a clear picture of your cash flow and revenue seasonality.

Understanding this information can then create clarity around your company’s overall financial health, providing greater insights into specific areas of growth potential. As an end result, you can make smarter, more informed decisions about your company’s future direction.

For example, those newfound insights might suggest that the time is right to open another local or overseas branch or hire some new employees. In either case, as the leading corporate and advisory services provider in the Asia-Pacific Region, the BoardRoom team can help:

  • Our setup and incorporation experts can help you to establish a new branch, either locally or across the region, including in Singapore, Malaysia or Australia.
  • Our payroll experts can assist you in automating your company’s payroll management to more effectively manage your human capital.
Gain clearer insights when outsourcing accounting

03 Avoid costly penalties by staying compliant

Running a large, multi-national company can be time-consuming and expensive. As your company grows, so too does the complexity of your tax reporting obligations. The last thing you want is to be in breach of the Hong Kong Inland Revenue Department’s (IRD’s) compliance requirements. At best, that may result in an audit. At worst, you could incur significant financial penalties.

For example, failing to meet your tax filing obligations can result in costly penalties. If you mistakenly leave some tax unpaid in Hong Kong, the IRD considers the outstanding amount to be a tax default. As such, it will take recovery actions and add a 5% surcharge onto the unpaid tax balance. The second instalment will then be due immediately if the first instalment is late. After six months, the IRD will impose an additional 10% surcharge on any outstanding balance.

However, a professional firm like BoardRoom is well-versed in tax law compliance. Outsourcing your accounting function to our team of taxation specialists can help your company to avoid any costly pitfalls.

04 Maximise savings with the tax breaks your company is entitled to

Your company is probably entitled to several tax breaks, but you may not be aware of all of them, they are also ever-changing so it can be hard to stay up-to-date. For example, businesses in Hong Kong with an annual profit of less than HK$ 2,000,000 need only pay a tax of 8.25%. That is half the regular corporate tax rate.

The IRD also released several business tax measures in its 2021-22 budget, including profit tax reductions and registration fee waivers. Hong Kong has signed a number of double tax treaties, the benefits to Hong Kong companies are numerous.

Read more about the Hong Kong Budget 2021-22 Report

Tax experts at a specialist accounting services provider like BoardRoom can help you to take advantage of all of these tax breaks – and more – while staying compliant. Our team will also go the extra mile and apply for any tax incentives that could benefit your company.

Efficiency of accounting

05 Increase efficiency with an organised, automated accounting flow

To increase efficiency, your company must have digital accounting records. This makes your data easier to analyse, which can help you to identify more insights into the most profitable areas of your business to drive growth.

Our team of professional accountants at BoardRoom can set up a secure, cloud-based financial management system for your company. We can also integrate payroll and claims submissions into the platform to further streamline your accounting flow and improve efficiency.

How Boardroom's expert accounting services can boost your company’s financial health

Accurate, reliable accounting is at the core of every successful company in Hong Kong. However, outsourcing your accounting function to expert service providers like BoardRoom removes the need for an in-house team. This helps you to save on employee overheads while still maintaining access to a professional team of chartered accountants.

To maximise your company’s financial health, our accounting experts will help you to:

  • stay compliant;
  • maximise your tax benefits;
  • keep you organised; and
  • offer you clearer insights into your company’s growth potential.

Get in touch with our professional chartered accountant team today to learn more about our accounting services and how they can help to boost your company’s financial health.

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Your guide to outsourcing company secretary services in Hong Kong

Company secretarial services in Hong Kong

Your guide to outsourcing company secretary services in Hong Kong

The role of a company secretary, why you need one, and how to choose the best services for your business in Hong Kong

The pressure of complying with the ever-evolving schedule of corporate legislative requirements in Hong Kong can be overwhelming. The pace of change is relentless, and corporate compliance obligations are only becoming more complex. This evolution is necessary in ensuring companies operate safely and fairly. Yes, it’s a short-term inconvenience – but there are multiple benefits for your company in the long run. This is where the role of a company secretary comes in.


What is the role of a company secretary in corporate governance?

A company secretary plays an integral part in corporate governance for any Hong Kong company.

As mandated by the Hong Kong Companies Ordinance, appointing a company secretary is a legal obligation for all registered businesses in the city. Their main role is to uphold good corporate governance of your company, by ensuring strict adherence to local laws, regulations, and policies. With their expertise in this area, they maintain compliance and safeguard the integrity of your business operations.


What other responsibilities does a company secretary have?

Company secretaries are also accountable for a range of administrative and managerial tasks such as bookkeeping, reporting statutory changes, liaising with the Hong Kong Stock Exchange, Companies Registry, and the Inland Revenue Department, organising board meetings, and assisting with routine operations to keep the business running in an efficient and compliant manner.

With the range of duties expected of those in a company secretary role, one can see this requires a lot of time, effort, and expertise. As such, professional company secretarial services can be engaged in lieu of individuals.


Why should I outsource my company secretarial services?

Outsourcing your company secretarial functions to an expert provider can relieve your team of the time-consuming administrative burden of corporate compliance in the here and now. It can also reduce overheads by freeing up key staff to focus on the core functions of your business, and save valuable resources needed to hire and train new company secretaries in-house.

However, it is crucial to note that failing to meet statutory obligations can have severe legal, reputational and financial ramifications for your company. That is why partnering with an experienced, qualified, and knowledgeable corporate secretarial service provider is so essential – meaning you should undergo a comprehensive selection process that ticks all the necessary boxes before committing.


What should I look for when choosing a company secretary?

To help you find the right solution for your company, here are the top five qualities to look for when selecting a company secretarial services provider in Hong Kong that will help your business succeed whilst remaining completely compliant with all local laws.

01 Corporate governance qualifications and experience

As mentioned above, in Hong Kong, every company must appoint a company secretary – which means it is non-negotiable as to why you need one. This secretary must be either a resident of Hong Kong or a company whose registered office or principal place of business is in Hong Kong.

In private companies, a director may take on the role of company secretary, unless they are the sole director. Putting a director to work as your company secretary can initially be an attractive option from a cost perspective. However, as your company grows, so too do the corporate governance requirements.

This is why so many private companies choose to outsource their company secretary, the role requires the specialist knowledge of a professional, but often doesn’t justify creating another role within the company. Although not a necessity, outsourcing is often the most efficient and cost effective option here.

For publicly listed companies, requirements regarding who can perform the company secretary role are stricter. The chosen person or company must either have suitable professional or academic qualifications or relevant experience to be acceptable under the Hong Kong Stock Exchange Listing Rules (“Listing Rules”).

corporate governance in corporate secretarial

The professional or academic qualifications considered ‘suitable’ under the Listing Rules include being:

  • a member of The Institute of Chartered Secretaries;
  • a solicitor or barrister under the Legal Practitioners Ordinance; or
  • a certified public accountant under the Professional Accountants Ordinance.

Experience that is considered ‘relevant’ under the Listing Rules includes the proposed company secretary’s:

  • length of employment in the company;
  • previous company secretary roles;
  • familiarity with the Listing Rules and other relevant laws;
  • planned or completed relevant training (the minimum training required is 15 hours per financial year); and
  • professional qualifications in other jurisdictions.

Clearly, experience and qualifications matter when choosing a corporate secretarial services provider. Our expert BoardRoom team has solid experience and members are all suitably qualified to proactively manage even the most complex corporate governance challenges.

02 In-depth local knowledge and global expertise for international compliance

A company secretary with detailed knowledge of the local regulatory landscape is an invaluable asset to your company. Equally important is an understanding of the subtle nuances of local cultures, traditions and customs.

At the same time, if your company is international – or even global – you need a company secretary that is familiar with your international legal obligations who can work alongside your legal or compliance agent, to ensure good corporate governance across the board. The subtle changes in both law and best-practice throughout different regions can be too easily overlooked without the correct resources on your side. Engaging the right people for this role could help you avoid financial implications and risks, large or small, and should be one of the biggest priorities for businesses with multiple branches.

The Corporate Secretarial team at BoardRoom brings together both in-depth local knowledge and international expertise. We can seamlessly guide your company across multiple markets in Asia-Pacific, in addition to Hong Kong, while managing all of the cross-border complexities of tax, trade, currency conversion and contractual rules.

03 A wide service offering that meets all of your corporate needs

As your business grows, outsourcing non-core functions to a single corporate expert provider can save key staff members time and allow them to focus on business strategy and performance.

At BoardRoom, we offer a full range of corporate services all under one roof. We make it easier for you to get on with business while we take care of the time-consuming, operational tasks.

In addition to company secretarial services, we can help you by accurately and efficiently:

04 Dedicated, personalised, and streamlined customer care

An excellent company secretarial services provider will assign a dedicated company secretary to your organisation. This is essential to give you a single point of contact who understands the exact needs of your business and can efficiently fulfil all that is expected of the role, remaining your go-to source for any questions you may have.

Having a dedicated company secretary also reduces your risk of non-compliance. It is all too easy for an inexperienced company secretary to miss important corporate governance milestones. Non-compliance means costly penalties for your company.

You can feel confident working with the team at BoardRoom, knowing that we are dedicated to ensuring you meet all your compliance obligations in relation to corporate secretarial matters.

05 Ability to evolve with you as your company changes

What is your vision for the future of your company? If going public is on your agenda, your corporate secretarial services provider will need the expertise to guide you through Hong Kong’s Initial Public Offering (IPO) process.

Alternatively, suppose you are thinking of evolving your corporate structure. In that case, you need to be aware of the many specific compliance requirements involved. You also need to prepare for the significant administrative work needed to make the change happen.

Whichever direction you choose to take your company, look for a corporate secretarial services provider that offers an extensive range of corporate services that are easily adaptable and scalable. Only with this offering breadth can the provider adapt to your company’s changing needs and evolve with you.

Looking for quality company secretarial services in Hong Kong?

Now that you know why you need a company secretary in Hong Kong, save yourself from the worry and time-consuming nature of corporate compliance by outsourcing this role to our expert BoardRoom team. Our comprehensive and professional company secretary services will take care of all your corporate governance concerns and requirements.

We have a proven track record of helping companies, from large multinational corporations to fast-growing SMEs, to stay compliant. Ultimately, we will save you time and money by letting you get on with growing your business.

Get in touch with one of our specialists today to learn more about how they can help you with your company’s corporate secretarial and compliance needs.



Frequently Asked Questions (FAQs)

1. Why do you need a company secretary in Hong Kong?

Having a company secretary in Hong Kong is essential for numerous reasons. Most prominently, it is mandatory to appoint someone to this role in order to legally incorporate your business within the city. In addition to maintaining your company’s overall compliance, they also help navigate complex legal requirements, perform a range of crucial administrative and managerial tasks, and safeguard your company’s reputation.

2. What is the role of a company secretary in corporate governance?

A company secretary plays a pivotal role in corporate governance. They ensure compliance with laws, regulations, and policies, thereby promoting transparency and accountability within the organisation.

3. What qualifications and expertise should a company secretary possess for their role?

It is vital that a company secretary has a strong understanding of corporate governance principles, local and international compliance, company laws, and regulatory frameworks.

Under the Listing Rules, they are also expected to possess ‘suitable’ professional or academic qualification, such as being:

  • a member of The Institute of Chartered Secretaries;
  • a solicitor or barrister under the Legal Practitioners Ordinance; or
  • a certified public accountant under the Professional Accountants Ordinance.

Alternatively, they can also have experience that is considered ‘relevant’ under the Listing Rules, which includes the company secretary’s:

  • length of employment in the company;
  • previous company secretary roles;
  • familiarity with the Listing Rules and other relevant laws;
  • planned or completed relevant training (the minimum training required is 15 hours per financial year); and
  • professional qualifications in other jurisdictions.

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