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India and Singapore Strengthen Economic Partnership: An Examination of Trade and Investment Trends

India and Singapore are consistently strengthening their Strategic Partnership, with Singapore contributing to a quarter of India’s trade with Southeast Asia during FY 2021-22. Furthermore, Singapore has emerged as India’s leading foreign direct investment (FDI) source, and its prominent FDI firms are actively engaging in company formation in India for urban planning and infrastructure projects across the nation. This growing economic cooperation demonstrates the significant role Singapore plays in India’s trade and investment landscape.

Economic Ties Secured by the Comprehensive Economic Cooperation Agreement (CECA)

CECA serves as an essential platform for economic cooperation between India and Singapore, initiated in 2005. Since then, bilateral trade has expanded from US$6.7 billion in FY 2005 to US$30.11 billion by FY 2022. Singapore has become India’s sixth-largest trade partner, while India ranks 12th for Singapore.

Since 1990, Singaporean firms have become one of the primary sources of FDI into India, contributing nearly 23% of total inflows, totalling approximately US$140.98 billion over that time frame. Singaporean firms play a critical role in urban planning and infrastructure development in India.

India and Singapore enjoy an expansive bilateral relationship that spans political, defense, economic, technological, and cultural ties. Both countries actively participate in various international fora and have signed various agreements to facilitate collaboration. These agreements include the Double Taxation Avoidance Agreement and Defense Cooperation Agreement, which further facilitate cooperation.

India-Singapore Ministerial Roundtable

The inaugural India-Singapore Ministerial Roundtable took place in New Delhi in September 2022. It provided a platform to explore existing and emerging areas of cooperation such as digital connectivity, fintech, green economy/green hydrogen production/use, skill development, and food security. At this event, the Monetary Authority of Singapore (MAS) signed an Agreement on Fintech Cooperation between them and the International Financial Services Centers Authority (IFSCA) of Gujarat state.

Bilateral trade between India and Singapore reached US$14.75 billion during FY 2023 (April to August 2022), a 24.7% rise over its prior-year totals. This increase is attributable to both CECA’s success and the strengthening of the Strategic Partnership between both nations.

Conclusion

India and Singapore share a robust economic partnership, reinforced by the Strategic Partnership and CECA agreements. These agreements have led to significant growth in trade and investment between the two nations. As collaboration on a variety of issues continues to expand, the future holds immense potential for even greater economic cooperation. If you are considering company formation in Singapore or India, let IMC Group assist you in navigating this promising landscape. IMC Group can guide you through the process of company formation, ensuring a seamless experience.

Global Growth Made Easy: PayNow and UPI Linkage Empowers Singapore-India Trade

We are pleased to announce the launch of the PayNow and India’s Unified Payments Interface (UPI) linkage, providing an instant, secure, and direct fund transfer service between the two countries. This milestone initiative was first proposed during PM Narendra Modi’s 2018 visit to Singapore, and the discussion of digital connectivity was further intensified at the India-Singapore Ministerial Roundtable held last year.

We extend our heartfelt congratulations to the Monetary Authority of Singapore (MAS), Reserve Bank of India (RBI), and all stakeholders involved for bringing this vision to fruition. This linkage will enable customers of participating financial institutions* in Singapore and India to send and receive funds between bank accounts or e-wallets across the two countries in real-time. They can do this using just the mobile phone number, UPI identity, or Virtual Payment Address (VPA). The linkage provides customers with a safe, simple, and cost-effective way to make cross-border fund transfers. This represents a significant step forward in strengthening the relationship between the two countries, as we explore and pursue new opportunities for collaboration and growth.

If you are an Indian company seeking to expand into Singapore, this is fantastic news! Incorporating a Singapore Company and establishing a presence in this dynamic and business-friendly city-state has never been easier. Take advantage of Singapore’s status as a regional hub for technology, finance, and business, and tap into the many opportunities available here.

Furthermore, if you are a single-family office, you will be pleased to know that Singapore is home to a thriving family office ecosystem. Singapore has established itself as a hub for wealth management and private banking, and it boasts a range of services that cater to family offices’ unique needs. With its excellent business infrastructure, low tax rates, and stable political environment, Singapore is an ideal location for Indian family offices looking to expand internationally.

We believe that this partnership between PayNow and UPI will continue to spawn innovative technology solutions, creating more cross-border opportunities for our digital economies. Don’t miss out on this chance to expand your business and take advantage of the growing digital economy in Singapore.

Get in touch with IMC today to learn more about incorporating a Singapore company or establishing a Single Family Office in Singapore.

*Singapore participants are DBS and Liquid Group. India participants are Axis Bank, DBS India, ICICI Bank, Indian Bank, Indian Overseas Bank and State Bank of India (more institutions will be added gradually).

Empowering Teams with Flexible Workspaces: The Key to Better Recruitment and Retention

In the context of a global economy, it is crucial for companies to attract and retain the best talent to stay competitive on the international stage. An effective strategy for gaining a competitive advantage is to provide a flexible workspace that caters to the requirements of the current distributed workforce. This article explores how flexible workspace solutions can assist global employers in attracting and retaining top talent across geographical borders.

What defines a flexible workspace?

A flexible workspace refers to a comprehensive workspace solution that offers employees and teams a range of work options based on their individual needs. Such options include open offices, hot desks, and coworking spaces.

Advantages of Offering Flexible Workspace Solutions to International Staff

Enhanced Employee Satisfaction:

The increase in remote work has resulted in a growing demand among employees to work from locations that align with their preferences and lifestyle. By availing a global network of flexible work desks, employees can easily locate a workspace that is convenient for them, irrespective of their location. This allows employees to have greater autonomy over their work environment, leading to an improved performance in a workspace that suits them best.

Heightened Efficiency and Teamwork:

Flexible workspaces not only offer convenience to employees but also provide them with fresh and distinct work environments that can stimulate creativity and innovation. This advantage is particularly evident in coworking spaces, where employees and businesses from diverse backgrounds and industries come together. The resulting diversity of perspectives can lead to the generation of novel ideas and innovative work methodologies.

Improved Harmony Between Work and Personal Life:

Offering employees greater flexibility in terms of when and where they work can help them manage their personal and professional lives effectively. Work flexibility is particularly crucial for employees who have family commitments, lengthy commutes, or inadequate access to stable and secure WiFi connectivity at home. When employers empower their teams to choose their work schedule and location, it promotes a better work-life balance, leading to increased productivity and job satisfaction while reducing stress and burnout levels among employees.

Enhanced Relationships and Involvement:

Providing employees with access to a worldwide network of flexible workspaces enhances their sense of connection with the company. When employees can work from a location that is convenient for them, it improves their level of engagement with the work. This advantage is especially relevant for international employees who may experience feelings of isolation or disconnection from their colleagues and the organization’s central office.

Enhanced Trustworthiness:

Empowering employees to select their preferred work schedule and location is a clear demonstration of trust from employers. This trust reflects respect for employees, which has a positive impact on their job performance. Additionally, when employers exhibit trust and respect towards their employees, it creates a mutual feeling of trust and respect, leading to elevated morale, improved teamwork, and increased innovation within the workforce.

Expense Reduction:

Employers can significantly reduce lease costs, as well as the expenditure on office furniture and equipment, by providing flexible workspace solutions. Most flexible workspaces come pre-equipped with all the essential amenities, resulting in cost savings for the employer. Moreover, through discounted global workspace access, employers can enjoy significant savings. These cost savings, along with those attained from using online collaboration tools, can be reinvested in building a better team.

Global Appeal and Talent Retention Through Adaptable Workspace Solutions

Organizations worldwide are recognizing the significance of creating a comfortable and productive workspace for their employees. Including flexible workspaces as part of an employee benefits package can offer a competitive advantage in attracting and retaining top talent internationally. With flexible workspace solutions, employers can reduce lease costs and office equipment expenses, enhance employee productivity, collaboration, and job satisfaction, promote work-life balance, and foster better engagement with the company. By empowering employees with the freedom and flexibility to work in an environment that suits them best, employers demonstrate trust and respect, leading to the creation of a more robust and innovative team.

In summary, a flexible workspace is a win-win situation for both employers and employees in the global economy, promoting a mutually beneficial work culture.

International Benefits: Incentives that Drive Hiring and Employee Retention

International Benefits

Incentives that Drive Hiring and Employee Retention

Successfully recruit and retain exceptional talent amidst fierce competition in the hiring market.

Gain a Competitive Hiring Advantage with Comprehensive Rewards Packages

As an employer, it’s essential to recognize that attracting and retaining top talent requires more than just offering competitive salaries. In today’s highly competitive job market, job seekers are looking for comprehensive benefits packages that meet their unique needs and desires. To become an employer of choice, you need to offer rewards that go above and beyond the standard offerings of most global employers of record.

One way to achieve this is by working with experts who can help you craft comprehensive, market-specific benefits packages that are tailored to your employees’ needs. These experts can help you understand the unique needs of your workforce and design benefits that will excite job seekers and increase workforce loyalty.

Comprehensive Coverage:

Provide your talented employees with everything they need to feel valued, including comprehensive benefits such as full health coverage, robust pension plans, and life insurance, among others

Elite Specialization:

Count on our team of experts to provide you with guidance on the optimal rewards solutions, while also providing quick and localized support to both you and your global workforce.

Global Governance:

Rest assured that your benefits packages comply with local statutory requirements across countries, providing you with peace of mind

Value-Based Pricing:

Access exclusive rates available only to large-scale providers, allowing us to offer you top coverage at competitive prices.

Boost employee satisfaction and retention rates by offering supplemental benefits in addition to mandatory ones

Providing statutory benefits such as medical, life, pensions, and time off is mandatory for employers in a given country. However, we take it a step further by offering your talent additional supplemental benefits that go beyond the legal requirements. By doing so, we aim to make your employees feel appreciated, valued, and motivated, which can give your company a competitive edge in attracting and retaining top talent.

More than just a vendor - we're a dedicated partner invested in your company's success

Just as you work hard to take care of your employees, we at IMC Group are dedicated to providing you and your talent with the highest level of support in the industry. Our team of experts is committed to offering assistance on everything from compliance-related inquiries to rewards strategies and more. With our localized approach, we are here to help at every step, providing the guidance you need to succeed.

Enhance Your Talent Attraction and Retention Efforts: Offer Equity to Your Employees Worldwide with Our Global Equity Program

One of the simplest methods for providing global equity awards and stock options

IMC Group collaborates with top legal advisory firms to assist you in providing globally compliant and customized equity plans and stock options. By delivering consistent packages regardless of location, you can attract qualified candidates and ensure that your talented employees remain loyal to your organization.

Integrated Solutions:

We take care of everything, from researching grant options to providing support with withholding rates, payroll processing, supplemental reporting, and other related tasks.

Global Adherence:

Our in-house experts collaborate closely with globally recognized consultants to guarantee that your equity awards conform to local regulations and standards.

Tailored Compensation Plans:

We simplify the process of granting various types of awards, such as stock options, stock appreciation rights, restricted stock units, and phantom awards, making it effortless for you to issue them.

Rapid Response Services:

Get access to competitive pricing on top-notch coverage by leveraging rates that are exclusively available to large-scale providers.

Grant Worldwide Equity with Regional Customization:

Offering equity awards and stock options to foreign employees should not be challenging. You can obtain detailed, country-specific recommendations on equity packages through our comprehensive resource center. Moreover, our experts are available to provide fast and localized support whenever you require additional assistance.

How Entrepreneurs Can Maximize Profit by Outsourcing

Today, it is not only high volume, repetitive, manual, and time-consuming tasks that are outsourced, even strategic tasks having competitive advantage are also being offloaded to outside third parties for achieving higher profits as in the case of contract research and contract manufacturing organizations (CRO/CMO) in the pharmaceutical industry.

When any business begins to grow, it can be difficult to manage everything in-house. Outsourcing allows businesses the time and resources necessary for focusing on other more important aspects of the company, while still offering customers high-quality products and services for enhanced business profitability.

Previously, it used to be non-core business functions that used to be outsourced in most cases. However, as the definition of core and non-core business functions are getting subjective, the outsourced functions are normally varying from business to business. However, a business can opt for the following six key business functions for outsourcing for clocking higher profit margins.

HR OUTSOURCING

Some HR functions are time-consuming and repetitive and put a huge cost burden on a company. To save money and time, you can enter into a contractual agreement with an external third-party provider whereby you transfer the responsibility of managing certain HR functions to the outside party. Many types of HR outsourcing options are available to you today.

Training, counseling, recruiting, and administering are some of the functions that many organizations prefer to outsource for reducing costs. Professional HR outsourcing services due to their expertise in this field and access to the latest technologies can even automate these HR functions and provide high-quality services at a significantly lower cost.

ACCOUNTING & BOOKKEEPING OUTSOURCING

Accounting and bookkeeping outsourcing is an arrangement where an external team of skilled accountants carry out the entire accounting tasks and provide a complete accounting and bookkeeping solution.

Setting up a skilled in-house accounting team can be expensive and difficult, and many companies opt for outsourcing this business function. The standard accounting services that are outsourced are Payroll processing, Bookkeeping Services, Tax returns filing, Financial statement preparation, Invoice processing, Financial planning & analysis, Cash flow management and Accounts receivable and payable management.

Besides cost savings, other top benefits of outsourcing accounting are an industry trend and one of the most popularly outsourced functions for SMEs. Businesses benefit a lot from outsourced finance and accounting services due to lower operating costs, improved accuracy and effectiveness of finance and accounting data, better financial decision making, and zero regulatory non-compliance. It is projected that over the next 4-5 years, the market for finance and accounting outsourcing globally would grow to USD 53.4 billion at a CAGR of 5.9%.

Today new age digital technologies have significantly eliminated most of the manual accounting tasks and made finance and accounting processes more simplified and automated. When outsourced, SMEs can have access to such technologies at a lower cost than arranging infrastructure and resources internally for the needed technological tools. Most of the IT services are outsourced by banking and financial institutions and toward upgrading and automating finance and accounting functions.

Outsourced accounting and finance can result in huge monetary savings for SMEs besides saving time, reducing financial paperwork, and better utilization of human capital. The top benefits of outsourcing accounting services include reduced compliance risks, time-saving, scalability, automation, and advisory.

MARKETING OUTSOURCING

When in-house marketing skills and talents are scarce and your marketing team is struggling to make the marketing campaigns to fruition, outsourcing marketing tasks to a specialist third party can take off huge operational pressures your team might be enduring. Marketing normally involves lots of different tasks stretching from advertising, content creation, campaign management, tracking effectiveness, and many more.

However, to be effective, marketing needs to be innovative and engaging, and when outsourced can connect you with marketing agencies who specialize in keeping on top of new technology and trends.

Marketing outsourcing can help you get an outsider’s perspective of your business and bring new and exciting marketing ideas. A salaried in-house marketing team is expensive and in the case of outsourcing you only need a budget when it’s necessary.

Outsourced marketing services can provide you with marketing software that can automate and schedule various tasks, such as content creation, email marketing, and social media posting to name a few.

IT OUTSOURCING

IT outsourcing is defined as a practice where an external service provider is engaged to deliver some or all of the IT functions required by a business including managing infrastructure, preparing strategy, and running the service desk.

IT outsourcing is common for small businesses that don’t have the ability and affordability to manage an in-house IT staff and infrastructure. Outsourced IT firms due to their skills, resources, and expertise can often offer more efficient services than in-house IT teams and can manage a wide spectrum of IT tasks.

ADMINISTRATIVE TASKS OUTSOURCING

Effective management of administrative tasks needs lots of time and organizational skills and usually includes scheduling appointments, answering customer queries, appeasing dissatisfied customers, receiving orders, and many other communication tasks.

Outsourcing these administrative tasks to an independent contractor or virtual assistant can help you eliminate manpower costs.

THE TAKEAWAY

Outsourcing always brings a competitive advantage through cost reduction, enhanced staffing flexibility, and time savings. Outsourcing business functions is a rising trend and businesses expect to spend billions of dollars annually on outsourcing.

However, there is one note of caution when services are outsourced. Frequently changing outsourced service providers can disrupt business continuity. Secondly, a company is more likely to build a strong relationship with its outsourcing service provider when working with the same team for a longer period resulting in an increased commitment and trust.

The Top 7 Hiring Tips for Hiring Global Employees

Survey reveals that in today’s competitive business climate, engaging and retaining the best talents is the topmost priority of the corporate world. There is a growing trend amongst companies to hire global talent in order to meet this objective.

Employee hiring is challenging, and more so in a global context given the geographical limitations, cultural differences, and complex and ever-changing labor laws.

Moreover, once hired, the employer must ensure that the relocation of the employee is comfortable and stress-free. Hence global recruitment strategies need to be effective so that crucial positions are adequately and timely filled in.

Following are the seven tips that can help large companies recruit globally in an efficient manner.

EMPLOYER BRANDING

For global hiring, employer branding must be a priority for all companies as most job seekers consider a company’s reputation and branding before applying for a job. Moreover, a strong employer brand brings down the cost of employee turnover drastically.

An organization can communicate its visions, mission, and values to the target audience and help prospective employees collaborate with the organization over their competitors.

For global hiring, developing a global employer brand is very much a necessity to attract talent. Job seekers must be able to access the company’s website easily and discover that it is an attractive place to work. The company must have a strong social media presence through LinkedIn, Twitter, Instagram, and Facebook and provide company reviews from existing employees on its website.

HIRING A GLOBAL PEO/GLOBAL EOR

Hiring professional global manpower sourcing services like an Employer of Record (EOR) or Professional Employer Organization (PEO) can greatly facilitate global hiring and paying employees nearly anywhere in the world, in full compliance with tax and labor laws.

When a business entity in its expansion drive looks for setting up a subsidiary in another jurisdiction, global EOR/PEO Services can be an effective way to hire employees as onboarding of an employee can be done on short notice and then transferred to the subsidiary.

OUTSOURCING A GLOBAL PAYROLL COMPANY

Most global companies find it hugely burdensome to pay staff in other countries in full compliance with local employment and tax laws and especially so when such recruitment drives span over multiple countries having multiple currencies and varied pay rules.

If a global payroll company is outsourced on a monthly settlement basis, the payroll company will shoulder the responsibility of paying all your staff on time and in compliance with all applicable tax and labor laws.

IDENTIFYING TARGET LOCATION

The strategy for global hiring, especially for large companies, needs to be directed to identifying target countries where the likelihood of finding job-specific talent pools is maximum. This will reduce time and money in looking for the most appropriate talents.

Countries which are having significant labor populations with specific skill sets as in the case of Bangladesh, India, and Poland where talented software professionals can be found in plenty. Even long-term employee costs could be put in check as manpower sourcing
from such selective countries may cost lower.

LEVERAGING TECHNOLOGY

Implementing company-wide recruitment software can facilitate the global sourcing of manpower. Today technology may play a decisive role in laying down a company’s global recruitment strategy. Centralized technology for tracking recruitment data across different time zones improves strategic decision-making.

A global system may be deployed to remain compliant with the latest immigration policies and data privacy rules in different countries.

Recruitment utilizing AI is also becoming increasingly popular as it can optimize tedious and repetitive tasks.

An AI scanner can scan resumes and cover letters to highlight the candidates with the most potential. A company can even use AI to assess past job descriptions to create a valuable recruitment database for future use. AI chatbots can help communicate with applicants and schedule interviews.

THE TAKEAWAY

The Covid pandemic has made remote work our new normal and as per the study, this trend will continue in the future, especially in countries with advanced digital infrastructure. This rising trend of remote working has increased the potential of global hiring.

PEO or EOR: Which One You Should Choose for Your Organization

Employer of Record (EOR) and Professional Employer Organization (PEO) operate like business partners and help companies manage teams across the world. While a PEO acts as a co-employer, an EOR is the legal employer of the distributed workforce of an organization. A clear understanding of a PEO versus EOR is the first step in rightly choosing one out of these two for your company’s complex needs of managing the human capital.

Both the EOR and PEO provide Global Mobility Solutions, however, an EOR as the legal employer does much more than just manage HR outsourcing. Overseas employment is the main function of an EOR that is achieved by removing international barriers to business expansion by using its robust network of local entities across the world.

An EOR

Effectively managing the HR, legal, tax, and local compliance requirements of your employees is the primary domain of responsibilities of an EOR in any country where your organization doesn’t have any legal representation.

Organizations planning to quickly and compliantly hire employees can do so through their EOR partner as it provides the organizations with flexible and cost-effective entry into any market without requiring any business registration.

Hiring an EOR partner makes you stress-free and allows you to focus on the core responsibilities.

The Working of an EOR

Once an organization makes a partnership agreement, the EOR is allowed to employ the staff through its local entity legally. An EOR can onboard, provide global payroll solutions, manage taxes, ensure payroll compliance, and carry out benefits administration including unemployment claim reporting on your behalf, be it a three-month assignment or a permanent position. EOR becomes your legal employer while you remain the managing employer.

A PEO

A Professional Employment Organisation (PEO) is a company that mainly partners with SMEs and provides HR services for full-time, permanent employees.

HR services that are provided include payroll processing, benefits administration, regulatory compliance, and tax filings.

International PEOs operate as a company’s outsourced HR department so in-house teams have more time to focus on their core functions.

A PEO is a partner company and not the employer of your workforce. Partnering with an international PEO can relieve an organization of its HR responsibilities, however, the organization is still held accountable for both legal and day-to-day operations including registering your business in the jurisdiction where you hire staff.

Working of a PEO

A PEO acts as a co-employer and when you outsource the services of a PRO, you enter into a co-employment agreement of contractually allocating and sharing your HR responsibilities and liabilities. This gives you legal insurance that the PEO manages part of your HR requirements and only alleviates part of the HR risks.

Difference Between an EOR and a PEO

Both an EOR and a PEO handle HR functions for your company, however, these two are not the same. The five major differences that separate these two entities apart are outlined below.

Structure

Structurally a PEO is a co-employer while an EOR is a full legal employer having a direct employment model.

When you hire a PRO, you remain the main employer with authority over HR-related decisions. However, with an EOR who is your trusted partner with local expertise, you need to give up some authority and control over HR-related decisions.

Scope

While PEO services outsource your HR activities, EOR services take over your HR responsibilities as the employer. Hiring a PEO doesn’t absolve you of your responsibilities of complying with location-specific labor laws.

Scale

As PEO acts as a co-employer to manage HR-related tasks, it helps create more value for companies with more full-time rather than temporary employees.

In contrast, an EOR provides more flexibility to companies that rely on temporary employees or that need access to talent in other locations. There are no minimum employees for an EOR and even a few staff hiring assignments may be given.

Risk

A PEO being a co-employer, cannot lessen your employment liabilities and HR risks and can only manage and share them.

However, if an EOR acts as the actual employer of your workforce and assumes all employment risks and liabilities, your HR risks are reduced.

Cost

The hiring of PEO and EOR services involves both short-term and long-term costs. Both these services usually charge either a flat monthly fee based on employee headcounts or charge a percentage of monthly payroll expenses. Sometimes PEO services also demand a one-time introductory charge before rendering the services.

Global EOR Services generally cost less than a PEO in the long term as it covers insurance and benefits for your distributed workforce, saving time and money for your organization. With global PEO services, you would still be responsible for benefits and insurance.

Should You Choose an EOR or a PEO for Your Organization?

Lots of factors come into play when choosing between an EOR and a PEO. Hiring a PEO is ideal when all employees are in a single location, however, with the company expanding outside to other locations, it becomes entirely challenging.

An EOR is legal and can operate in many countries across the world to address your human capital needs. If your business wants to employ staff globally, then PEO is not the right solution.

Businesses eyeing new overseas markets need agility, cost awareness, and expertise. Generally, when a company goes global, complexities abound due to unfamiliar labor laws and regulations and the company needs a trusted partner like an EOR to successfully cross over the barriers to global expansion and realize optimum revenue growth.

Outsourced Finance and Accounting Services Provide Sustainable Growth Opportunities to The SMEs

One of the most crucial aspects of any SME is finance and accounting which need to be streamlined and meticulously organized for sustainable growth. Contrary to the belief that this is something to be handled at the financial year-end, finance and accounting should be a continuous and year-long operation and must be carried out with much expertise and accuracy.

While some SMEs choose to have their finance and accounting operation in-house, this often becomes difficult due to frequent regulatory changes and revisions in compliance policies, new accounting rules, and financial regulations, and last but not the least, increased operating costs for internal accounting teams due to recruitment and training cost, employee salaries, taxes, incentives, and bonuses. Higher operating costs, in most instances, put SMEs in a tighter spot because of their limited budgets and monetary resources.

Surveys reveal that outsourced accounting services are an industry trend and one of the most popularly outsourced functions for SMEs. Businesses benefit a lot from outsourced finance and accounting services due to lower operating costs, improved accuracy and effectiveness of finance and accounting data, better financial decision making, and zero regulatory non-compliance. It is projected that over the next 4-5 years, the market for finance and accounting outsourcing globally would grow to USD 53.4 billion at a CAGR of 5.9%.

Today new age digital technologies have significantly eliminated most of the manual accounting tasks and made finance and accounting processes more simplified and automated. When outsourced, SMEs can have access to such technologies at a lower cost than arranging infrastructure and resources internally for the needed technological tools. Most of the IT services are outsourced by banking and financial institutions and toward upgrading and automating finance and accounting functions.

Outsourced accounting and finance can result in huge monetary savings for SMEs besides saving time, reducing financial paperwork, and better utilization of human capital. The top benefits of outsourcing accounting services are detailed below.

Reduced Cost

When reputed and professional services are hired; recruitment, training and operating expenses, employee benefit expenses, maintenance, infrastructure costs, and other overheads are significantly lowered. Such outsourced services are scalable, and the cost of services can be optimized based on needs.

Enhanced Reputation and Goodwill

Accurate and transparent financial statements prepared by independent and qualified professionals as CPAs and complying with regulatory authorities enhance investors’ confidence and promote the credibility of SMEs.

Improved Cash Flow

Timely and proper accounting and readily available financial statements help optimize the accounts payables and receivables, the cash flow cycles and improve cash management and sustainability of a business.

Improved Tax Management

Managing tax often poses difficulties for many SMEs. Outsourced services are seasoned and expert tax professionals who help reduce tax liability, improve profits and eliminate penalties with their tax knowledge and sector-specific tax awareness.

Improved Management Decisions

Outsourced services provide and maintain accurate books of accounts continuously and help SMEs with visual data on financial trends and problem areas for timely and improved management decisions. Areas of cost escalations and cost reduction opportunities are easily identified, and quick actions are initiated.

Easier Fund Raising

Outsourced service providers make financial statements transparent and simple to attract potential investors as the investors can clearly understand all the risks and opportunities involved in the business.

Easier Access to Technology

Outsourced services by their knowledge and expertise can easily identify the technological requirements of SMEs and provide customized accounting software for simplifying and automating accounting and bookkeeping processes. Cloud-based software available with the outsourced services is upgraded at no extra cost and can speed up financial transactions saving money for SMEs.

Reduced Accounting Errors

Outsourced experts and experienced services with ready access to technology and regulatory requirements, can ensure error-free accounting quickly eliminating monetary sanctions.

Improved Payroll

Automated and seamless payroll procedures help HR focus on core functions improving value for the company. Timely payment makes employees happy and more productive.

Improved Security

Outsourced services use the latest software and carry out frequent audits of the accounts of SMEs ensuring no data breaches and financial fraud. The finance and accounting functions are on continuous supervision of outsourced services.

The Takeaway

Cash is the oxygen for a business and no company, even a profitable one, cannot survive without cash. The top reason why outsource accounting and finance are to manage and optimize cash flows and ensure the sustainability of an SME. The outsourced services also help generate cash through effective cost management and cost reduction initiatives.

Today, our world has become borderless, the time zones have become inconsequential, and businesses are increasingly dependent on the movement of employees around the world for their global expansion.

The importance of employee mobility has heightened for many businesses, especially after the Covid 19 pandemic and both employers and employees are increasingly looking for a dynamic workplace.

International employee and talent mobility plays an important role in any successful international business today however, that brings with it a plethora of challenges, risks, and opportunities. For availing the opportunities presented, businesses must possess the right knowledge and advice for mitigating the risks and challenges they encounter and effectively managing employee and talent transfers.

Global mobility service providers can help businesses build, manage, control, and support globally distributed employees and talents through their unique and enhanced service offerings bringing ease and flexibility to employee workplaces, their payment system, and many more.

Many companies across the globe are now engaging global employee mobility service providers to employ a whooping number of employees around different parts of the world to remain competitive both in their hiring process and business.

As flexibility is becoming the topmost important for employees, global employee mobility service providers are constantly endeavoring to make things easier for employees with comfortable living, working, and payment systems. Global Mobility Services also help establish global mobility strategy and programs for businesses and streamline international relocations to hire global talent.

Global Mobility Services have its own experienced and professional teams and can support its clients with immigration guidance and verification of eligibility before employment and relocation including many other supports like payroll in local currencies, taxation, compliance, local benefits, etc.

When it comes to immigration, Global Mobility Services help their clients easily navigate complex governmental regulations and immigration laws for quick relocation of employees. They also help in managing employee work permits & visas, cross-border support, documentation, and legalization services. They even help track employee work permits and visa expiry and renewal.

Under the services of payments, compensation, and rewards, Global Mobility Services provides global payroll solutions, and manages payments and reward reporting through an integrated, end-to-end process ensuring error-free global reporting and local compliance at an affordable and optimum cost. They also support their clients in global compensation management, social security, and pensions including review of remuneration packages, payroll preparation and reporting, and year-end employee tax compliance.

While global employee mobility can have considerable benefits for a business, it also comes with its fair share of challenges including complex visa processes, high expenses of moving employees and shipping costs of household possessions, different rules for employee wages and benefits across different countries, family assistance like schooling and lastly different compliance requirements with labor, tax, and payroll laws in different countries. Global Mobility Services help its clients in successfully addressing these challenges and support global employee relocation and retention of world-class talent. The clients can opt for an end-to-end global mobility solution that enables seamless global hiring and mobility for legal employees.

Gone are those days of allocating costly resources to lengthy and complex setups for facilitating relocation during global hiring. Global Mobility Services has never been so supportive and indispensable.

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