Category: Payroll

5 advantages of outsourcing payroll services in Hong Kong

advantages of outsourcing payroll services

5 advantages of outsourcing payroll services in Hong Kong

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5 advantages of outsourcing payroll services in Hong Kong

Delivering a critical business function like payroll in-house can be challenging. There’s no room for error. Employees must be paid accurately and on-time. The company must remain compliant. All in all, it can be a very time-consuming process to manage payroll in-house.

As companies grow, managing payroll can become even more of a challenge. In-house HR teams may be stretched and not have enough capacity to stay up-to-date with compliance.  This is especially relevant in Hong Kong and the APAC region, where payroll regulations are complex and ever-changing.

The benefits of outsourcing payroll services add up significantly when you consider the costs involved in managing it in-house. After all, time is money. Increased efficiency makes a substantial difference to the bottom line.

While time and cost savings are key advantages of outsourcing payroll services, your company also stands to gain five other considerable benefits from outsourcing payroll.

Here are those advantages:

01 Continuity in payroll expertise

Professional payroll outsourcing vendors have extensive experience in processing payroll across a wide range of industries, and for companies of all sizes. This means that even if your company is growing rapidly or expanding into new countries, the accuracy of your pay runs will never be in jeopardy, and they will always be fully compliant with local labour regulations.

An expert payroll services provider will remove the need to waste time hiring and training a new payroll administrator every time your company experiences growth, or if one of your team members resigns. Instead, you can gain peace of mind from knowing that your employees will be paid on time, every time, by a consistent and dedicated team.

02 Access to unparalleled reporting capabilities

Comprehensive payroll reporting can make a real difference to an organisation. Having greater visibility into resource planning information, such as annual leave trends and overtime reporting, can be a game-changer for business planning.

In addition to having a platform capable of producing comprehensive reporting, a good payroll outsourcing vendor will provide regular reports and valuable insights for your business.

how to outsource payroll

03 Enhanced data security and protection

The personal data stored in payroll systems is highly sensitive. Keeping this data secure and compliant with local personal data protection laws requires a significant investment, not only in infrastructure, but also in cybersecurity and personal data protection training for staff. Reliable payroll outsourcing service providers store their data on highly secure cloud-based servers to deliver maximum data security and protection. At BoardRoom, we look to operationalise, not just tick boxes when it comes to securing and protecting your data. It’s why:

  • our team members participate in regular cybersecurity training sessions, as well as data protection training sessions every year;
  • our data centres have achieved ISO27001; and
  • our cloud hosting was awarded SOC 2 certification.

04 Minimised compliance and regulatory risks

In Hong Kong and throughout the APAC Region, HR teams need to factor in a multitude of compliance and regulatory risks when processing payroll. This complexity goes beyond calculating gross net salary correctly, extending to whether or not your company meets specific statutory deductions.

Complexity, coupled with intricate reporting standards, makes it challenging for even the most experienced in-house team to stay compliant. Payroll needs to be done on time and error-free every time to avoid time-consuming audits and costly penalties. A professional payroll outsourcing provider minimises your exposure to these compliance and regulatory risks.

05 Expert advice at your fingertips

One of the key advantages of outsourcing payroll services is gaining access to a team of highly trained payroll professionals. They can answer any questions you have and provide proactive solutions to any potential issues – all without the price tag of maintaining this level of service in-house.

Your company can also benefit from working with a payroll outsourcing vendor that offers a variety of integrated, value-add corporate services, including:

outsource your payroll

Gain the advantage: partner with an established payroll provider

At BoardRoom, we are experts at helping companies to gain an advantage through efficient, accurate and compliant outsourced payroll services. Letting us manage these services enables you to focus on what matters most in your company: growth and profitability.

Whether you are a large multinational corporation or a fast-growing SME, our team makes processing your payroll in Hong Kong easy. From local payroll services handling to managing substantial payroll obligations across the Asia-Pacific Region, we ensure your company remains compliant and that employees are paid on time, every time.

Speak to our payroll experts today about how to outsource payroll services for your company.

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Does your business survival depend on sustainable cost cuts?

cost-cutting strategies

Does your business survival depend on sustainable cost cuts?

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Which costs to cut to secure your business future

Key insights

  • Cost-cutting demands a sustainable approach to operational efficiency and employee wellbeing
  • Efficient management of working capital supports a renewed focus on immediate, medium and long-term impact
  • Smart outsourcing with trusted partners sharpens expertise across critical operations

As the world waits on COVID-19 vaccines, business leaders are managing through a global depression with both the US and European economies continuing to threaten the Asian export market. This is the type of economic downturn that traditionally results in retrenching employees as an immediate cost-cutting measure.

However, the global and personal impact of the pandemic has driven a people-first approach to managing through this unprecedented economic downturn; every business has customers and stakeholders watching how they respond to market challenges to balance people and profit.

Leaders ready to do things differently can look to sustainable cost-cutting strategies to guide your organisation through change with reduced risk:

  1. Smart management of working capital
  2. Employee stock option plans
  3. Outsourcing payroll or improving processes
  4. Outsourcing finance, tax and accounting services
  5. Leverage industry grants and economic stimulus

By prioritising what drives value for your organisation in the long-term, sustainable cost-cutting strategies focus on positioning the company to survive now and to thrive through an economic recovery.

01 Smart management of working capital

Cash flow is critical in a crisis, and minimising investment in working capital — what we spend to get the job done and keep business running — is critical.

2020 has put the focus back on operational efficiencies — and effective working capital management. Growth and development may be temporarily on the backburner, but this is the time to get the business-critical functions of your organisation right. Containing costs to minimise reliance on lenders will position your business to recover strongly as economic conditions bounce back from an unexpected 2020.

A renewed interest in working capital demands a critical assessment of the entire sales pipeline; inventory levels, distribution points, and product viability are all on the table.

Smart leaders are looking at strategies, including:

  • proactive invoicing — offering customer incentives like early payment discounts
  • cash management — paying suppliers when they’re due, not before
  • inventory — lowering stock thresholds to reduce risk, but maintain agreed customer service levels
  • reducing overheads by outsourcing backend services.

Next steps: Assess your working capital costs and financial forecasts to confirm what you can bring inhouse and which backend services are smarter to outsource.

02 Outsource your payroll or improve your processes

Outsourcing backend services like payroll has a poor reputation as being the inevitable result of retrenchment, or a sign of instability. However, payroll processes are crucial to managing through an economic downturn; smooth payroll processes drive employee satisfaction, and it’s likely your HR department is busy by managing people issues in a pandemic.

There two ways to outsource payroll to streamline operations:

  • completely outsourcing the payroll function and services to an external provider
  • using a cloud-based SaaS HR management system (“HRMS”) — freeing up HR from administrative tasks by empowering automatic and self-service tasks.

The approach can also unlock unexpected benefits, and expose the significant opportunity cost of not outsourcing key functions; boosting visibility, streamlining internal processes, and staying compliant across multi-country payroll and tax conditions.

Each model can benefit their corporate objectives while managing costs, cross border functionality, and personal data privacy of employees.

Next steps: Check if payroll outsourcing or SAAS for payroll management suits your business needs.

03 Outsource backend financial support across accounting and tax planning

In an economic downturn, every organisation focuses on the very core of the business; the what and the why. It’s never been more important to have experts aligning your financial processes and procedures with your organisational goals. Your organisation can seek financial help with everything from bookkeeping to redundancy strategies to ensure the business runs smoothly while internal staff focus on business survival and generating revenue.

By choosing a financial services partner equipped to manage your operational and strategic finances and accounting, businesses bring external expertise and new perspectives on long-term accounting and tax planning.
Support for tax planning may include:

  • location planning for tax offset maximisation
  • streamlining cross-border transactions to simplify complex deals
  • minimising and deferring payments while staying fully compliant
  • strategic planning to leverage falling asset values.

An additional unexpected benefit of external support across accounting, tax and financial reporting is the establishment of effective data reporting, analysis and forecasting. This data helps to inform planning, working capital decisions, and support for your enterprise to apply for eligible economic grants and stimulus packages and ensure the governance is in place to stay compliant with funding conditions.

Next steps: Put all your financial operations on the table for expert review. Focus internal skills on long-term planning and get external support for tax, accounting and reporting.

04 Reward people with employee stock option plans

If you don’t have cash on hand but want to reward and retain employees look at an Employee Stock Options Plans (“ESOPs”).
As companies like Slack and Atlassian lead the way in remote-first workforces, competition for skilled employees demands a different way of approaching the employee experience. Employee equity plans have been popular during the COVID-19 pandemic as companies look for a different approach to boost employee engagement, maintain productivity, and keep intellectual property.

Create a purpose-built plan to fit your organisation and employee needs and create a sense of ownership to keep the best and brightest employed in the long-term. Your new stock plan — or updates to your current plan — should:

  • keep liquidity by creating long-term incentives to replace short-term cash bonus or salary increase expectations.
  • reward high performance and employees who increase operational efficiency during an economic downturn.
  • use performance metrics relevant to your organisation — look at total shareholder returns (“TSR”), client retention, and return on equity (“ROE”) and adapt goals to conditions.
  • drive growth by incentivising staff towards a common business goal.

Next steps: Look for an external provider who can manage your Hong Kong-based or global ESOP and keep the workforce focused on revenue-generating initiatives.

05 Access government and industry grants and economic stimulus

Since the unprecedented challenges of COVID-19, Asian markets have seen a new range of government, industry grants and other economic stimulus packages.

If your organisation operates across borders or is open to funding to expand operations, you may be eligible for funding support.

Support from government or industry grants demands stringent corporate governance; you may need a guide to accessing, implementing and leveraging new opportunities across borders.

Next steps: Get expert help to find Hong Kong support for enterprise and cross-border funding opportunities, apply for funding, and to stay compliant across jurisdictions.

How sustainable is your cost-cutting in 2021?

Cost-cutting strategies to manage through an economic downturn look different today to the Global Financial Crisis or the dot.com crash; leaders must balance short-term needs with long-term business survival.

It is no longer enough to reduce headcounts, freeze salaries, and scramble to maintain productivity. Smart organisations are taking a new approach to old problems: keeping employees committed with stock options over pay rises, looking for market and industry support, and getting smarter about the benefits of outsourcing.

The right outsourcing partnerships are key; who you choose to support your business can define your organisation and your leadership. Look for providers that support your workforce with administrative and financial expertise that drives business recovery.

Talk to BoardRoom about support for sustainable cost-cutting strategies.

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Is Outsourcing Payroll or Cloud-based SaaS Payroll More Suitable for my Business?

Is outsourcing payroll or cloud-based SaaS payroll more suitable for my business

Is Outsourcing Payroll or Cloud-based SaaS Payroll More Suitable for my Business?

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Is Outsourcing Payroll or Cloud-based SaaS Payroll More Suitable for my Business?

Payroll is the machinery that keeps a company’s human capital running effectively. Studies indicate that a timely pay-check is a vital requirement for staff satisfaction. In addition, flawed payment systems can lead to employees questioning the financial stability of the organisation which induces low employee morale and in severe cases, can land the company in legal trouble.

Despite the important role that payroll plays in a company, many businesses are still unclear on what solutions are available and how to evaluate them in order to determine the best fit for their needs.

In this article we cover two popular solutions, Outsourcing Payroll and the implementation of an all-in-one HRMS SaaS solution, and the key consideration factors for making the most appropriate selection for your company to administer Payroll.

What is Outsourcing Payroll?

Outsourcing Payroll involves hiring a specialist payroll company to handle some, or all, of your payroll functions. An outsourced payroll provider offers a wide range of services, that allow businesses to select an option that best suits their specific needs. A full list of the various services a Payroll Outsourcing provider should offer are detailed below:

Outsourcing these administrative business activities has proven to streamline operations and create efficiencies for businesses, enabling a shift in resource allocation to revenue generating activities.

However, the choice to outsource your payroll will depend very much on your organisational requirements.

Key considerations for Outsourcing Payroll

  • Time-saving – Payroll is a resource-intensive administrative function, outsourcing it frees more time for your internal teams administering payroll to focus on other activities. If you are currently experience resourcing issues, outsourcing your payroll could be a more effective solution than hiring new staff.
  • Enhanced Security – In a world rife with data security fears, reputable Outsourcing Payroll providers will offer multiple servers, backups, and other security systems and processes that protect employee personal data to grant employers peace of mind. In addition, they will have robust internal processes that adhere to best practice personal data protection rules.
  • Guaranteed Regulatory Compliance – Between countries and even within states of a large country, various regulatory compliance changes can be challenging for in-house HR teams to keep up with, leaving room for compliance risks. By outsourcing your payroll to a reputable vendor, you need not worry about ever being non-compliant to changing local regulations.
  • Visibility over costs – One of the major benefits of outsourcing is that your costs don’t fluctuate significantly. You have complete visibility over how much you will be spending each month, and any additional hires will come at a pre-determined rate, meaning hiring costs can be more easily planned.
  • Possible Inaccuracies in Data – Outsourcing payroll requires transfer & hosting of data off-site, which can result in errors if the correct systems are not in place. No system or process (no matter how technologically advanced) is 100% perfect, meaning when mistakes occur during data transfer it can take extra time to rectify and correct. To mitigate it, we recommend engaging a credible Payroll Outsourcing provider with an experienced team, robust processes and a consistent track record.
  • Limits of Data Access – If cases such as sudden terminations or placement of staff on gardening leave occur frequently, businesses should be aware that the ability to immediately process information could be delayed even with automatic Cloud Connection systems between the payroll vendor and their client.

These are just some of the things you need to consider when thinking about payroll outsourcing. Ultimately, you will need to find the solution which best aligns to your business needs and processes.

Businesses Most Suitable for Outsourced Payroll

A general trend of companies that tend to adopt this service are organisations that exhibit the following characteristics:

  • Non-complex Pay Runs – Standard payroll calculations for companies mostly consisting of full-time monthly salaried staff or casual labour typically find outsourcing payroll to be immensely beneficial as costs tend to be lower than having a full time equivalent (“FTE”).
  • Expanding Businesses – For businesses like technology start-ups or food & beverage chains where growth can be exponential, good Outsourcing Payroll providers can keep up with dynamic and fast changes in staff numbers.
  • Multi-Jurisdiction – These companies benefit from outsourced payroll as they can redirect the resources of the HR team into other business generating activities when they spend lesser time ensuring that they are familiar with the different laws across several countries/states.
  • Compliance Worries – Companies that operate in markets with complex labour laws and regulations such as Malaysia and China might have a lack of access to expert knowledge necessary for them to operate with a peace of mind. Outsourcing payroll to a reliable vendor can help lift the burden of worrying about fines or potential lawsuits resulting from a misunderstanding of the complicated payroll requirements.

Of course, this is not an exhaustive list and there are exceptions. As every business is unique, an excellent Outsourcing Service provider should have the ability to customise and advise you on the best solution to meet your needs.

What is a cloud-based Software as a Service (“SaaS”) Human Resource Management System (“HRMS”)?

Another common method of processing payroll is with an all-in-one HRMS SaaS solution which allows a company to retain control of processing payroll internally, with the efficiency of having all the core systems in one ecosystem.

Most frequently adopted by small businesses, the payroll software vendor will take responsibility for data backup and managing software upgrades, whilst the business manages its employee database and payroll processing. The pricing models vary, but mostly the software vendor licenses the customer through a subscription in a ‘pay as you go’ model.

Many businesses choose an all-in-one HRMS SaaS solution because of the convenience and flexibility that this option provides.

As with outsourcing your payroll, your decision to select a SaaS HRMS solution should take into consideration your payroll complexity, business objectives and processes.

Key considerations for adopting an all-in-one HRMS SaaS solution

  • Adaptability to Existing Systems – For companies using their own proprietary software it can be challenging to find a solution that integrates with their current software. If keeping your internal system is important, it’s critical you find an HRMS SaaS solution that adopts an open API framework.
  • Data Protection – Reputable HRMS SaaS vendors often have strong measures in place to ensure that their clients’ personal data remains private. In countries like Hong Kong where data protection laws are strict, HRMS SaaS providers will ensure that their requirements fit with local regulations such as the Personal Data Privacy Ordinance (“PDPO”) to avoid hefty fines. It’s important any vendor your evaluating can demonstrate robust systems, policies and processes to ensure your employee’s personal data remains protected.
  • User-Friendly – Technology has advanced at such a rate that any reputable cloud based HRMS SaaS solution will offer a seamless user experience and user interface. They will also cater to changing habits of employees such as needing to access the HRMS on the go or from a mobile app.
  • Automation of Processes – If your main business goals are efficiency and costs, a HRMS SaaS solution will help to save time and resources as manual processes are now done automatically via the platform which can greatly reduce the propensity for human error.
  • Strong Vendor Reputation – New platforms are everywhere as businesses hop onto the trend of HRMS SaaS solutions. With so many new entrants, credibility must not be overlooked for other attractive factors such as cost of implementation. Less reputable vendors can lead to wasted labour hours and potentially cause downtime which might impact the bottom line, resulting in greater long-term costs.
  • Ability to Act Swiftly on Disruptions to Network – Can the company’s in-house staff react to downtime in its payroll system swiftly enough before it escalates? A HRMS SaaS provider often has its own dedicated team for quick response to downtime that not every business has in place which can reduce time needed for correcting any issues.
  • Internal HR team Well-versed in Compliance – As companies will be handling Payroll internally, they will need to have a strong HR team that are highly responsible and aware of labour regulations. Whether a company is willing to gamble with that risk is often a deciding factor when choosing between payroll outsourcing which can manage compliance or engaging in a HRMS SaaS solution.

Businesses Most Suitable for an all-in-one HRMS SaaS Solution

There is no one size fits all solution when it comes to Payroll, however, we often see companies that exhibit the following characteristics benefiting most from the adoption of an all-in-one HRMS SaaS solution.

  • Start-ups – A HRMS SaaS model can provide a no-frills solution to process payroll for growing companies. An all-in-one HRMS SaaS solution can also offer efficiencies for busy companies, automating and connecting many of the key modules needed to administer payroll such as leave & claims. Modern HRMS SaaS solutions will also cater to the mobile nature of our world and offer a mobile app and the ability to access the system anywhere, anytime.
  • Companies using Offline Administration Methods – A HRMS SaaS model can help alleviate administrative burden for HR teams running manual payroll processing, especially ensuring data accuracy and calculations as the system will do this automatically.
  • Companies with Complex Legacy Systems – Usually companies seek a HRMS SaaS solution when they have a legacy system that is unable to retrieve real-time data efficiently. Modern HRMS SaaS models provide real-time reporting capabilities, ensuring that businesses can leave behind clunky legacy systems and streamline to a more efficient mode of payroll reporting.
  • Businesses with Complex Payroll Processes – The adaptability of a HRMS SaaS software ensures that even the most complicated and complex pay runs can obtain a customised solution, should they select the appropriate vendor.

Summary

There is a wealth of options for processing payroll, the correct solution will boil down to what is most suitable for your business. Your companies’ size, growth strategies, compliance requirements and operating model will all influence the path you choose. Whatever your choice, always ensure that your solutions are in line with your objectives.

BoardRoom – Regional All-in-One Payroll Outsourcing Services & HRMS SaaS Solution Provider

Our regional presence with offices in Singapore, Malaysia, Hong Kong, China and Australia and experience in dealing with various regional and international clients makes us one of the trusted Payroll Outsourcing partners in the APAC area. Contact our Payroll experts to see which solution best suits your business.

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6 Reasons Why You Should Outsource Your Payroll

6 Reasons Why You Should Outsource Your Payroll

6 Reasons Why You Should Outsource Your Payroll

boardroomsuperadmin

6 Reasons Why You Should Outsource Your Payroll

Whether you are running a business or leading a team it seems there are more challenges than ever to ensure staff time and resources are being spent on core functions that drive business growth and not back-end administration.

This is why approximately 47% of companies choose to outsource their payroll. Payroll is a critical business function; however, it can also be also time-consuming, complex and largely administrative in nature. You add to this the fact that complexities and risk associated with Payroll compliance increase as your business expands. This is especially true across the Asia Pacific region where there are constant nuances in Payroll Legislation. Yet employees are more mobile than ever and demand the same experience irrespective of where they are in the world.

In this article, we explore why Payroll Outsourcing can be an effective solution for businesses by taking you through the 6 key benefits to outsourcing payroll.

01 Saves HR teams time to focus on business growth

Payroll is a largely administrative function that requires a high level of attention to detail. In short, it is a time-consuming business requirement, regardless of your company be it 50 employees or 5,000, processing payroll is a constant that can quickly drain HR resources.

When you outsource your payroll processing you allow your HR teams to focus on core business activities that drive performance and growth, fundamentally saving the business time.

In addition to this, a professional payroll outsourcing provider will have had a variety of experience processing payroll for companies of all shapes and sizes. This is a direct benefit to your business because it means that irrespective of how you grow or where you grow to, your pay runs will never be in jeopardy and you won’t waste time hiring and training a new payroll administrator each time you experience growth.

02 Unparallel reporting capabilities and expert advice at your fingertips

There is no one size fits all solution for running payroll. Each business has a unique set of requirements that a professional payroll outsourcing firm will not only cater to but recommend best practices processes and systems. Multi-country payroll processing, especially across Asia Pacific can be a daunting task to manage in-house. However, a payroll outsourcing firm will have a multitude of experience across a wide range of industries and will conduct multi-country payroll processing daily, meaning your business will benefit from their years of experience.

 Comprehensive payroll reporting can make a real difference to an organisation, from visibility over annual leave trends for resource planning or assessing overtime reports, payroll reporting can play an important role in business planning. A good payroll outsourcing provider will not only have the platform in place that caters to comprehensive reporting they will also provide regular reporting and insights for your business.

By choosing your HRMS wisely, you guarantee peace of mind for your HR department and free-up resources to focus on other functions such as improving processes and securing a strong talent pipeline. In the words of Elbert Hubbard, let your extraordinary people do extraordinary work and leave the machine to do the ordinary work.

03 Information security & confidentiality safeguards

Personal data protection has never been more important than when in the context of processing payroll. The personal data stored for payroll is highly sensitive and requires a significant investment, not just in infrastructure but also in staff training to ensure companies remain in compliance with local personal data protection laws.

By engaging a credible payroll outsourcing company, the investment and risk associated with compliance failure by your internal teams is mitigated. The payroll outsourcing company will have extensive systems and best practice processes in place to ensure there is no breach.

04 Ensure compliance with changing Government regulations and standards

Running payroll, especially across Asia, brings with it a multitude of local country statutory regulations and standards that need to be met. This goes beyond accurate computations of gross to net salary and moves into the specific statutory deductions required in the country you’re operating.

The intricacies of these reporting standards need to be timely and mistake-free to avoid potential time-consuming audits and penalties. A professional payroll outsourcing company will ensure you always remain a compliant employer.

05 Cost savings

Wherever there is time savings, there is typically cost savings and outsourcing payroll is no exception. It is a common misconception that payroll outsourcing is more expensive than having an in-house team. The truth is, it really depends on your business needs, however, as a general rule you can expect payroll outsourcing to be a cost-efficient solution if you have standard pay runs.

If you require a more complex solution, payroll outsourcing could still be the answer. By outsourcing your payroll, you have a dedicated team at your fingertips who has an array of experience across a diverse range of business needs and challenges. You do not need to worry about hiring and training staff to manage your complex needs.

06 Access to complementary services

A key benefit of outsourcing is the access to a team of highly trained professionals. All of which are dedicated to answering any questions you have and pre-empting and providing proactive solutions to any potential issues that may arise.

In addition to this, many payroll outsourcing companies provide complementary services. BoardRoom is a good example of one such company their team across Hong Kong, China, Singapore, Malaysia and Australia offering services such as Corporate Secretarial, Accounting and Taxation.

This is a benefit to your business as you can tap into a team of experts that cater to all your back-end business requirements.

Looking For A Trusted Payroll Partner?

At Boardroom, we are experts in helping companies, from corporations to fast-growing SMEs, with their payroll, allowing them to focus on what matters – growth and profitability.

From local payroll services handling to managing substantial payroll obligations for bigger companies spread across Asia-Pacific, we help companies comply with local statutory regulations while ensuring their most valuable asset, the employees, are paid on time.

Contact us today and empower your organisation with greater freedom through our payroll solutions.

Or you can also learn more about our payroll solutions here.

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