BAO is Business Administration Outsourcing, it has been a widely adopted practice for many SMEs and even some MNCs. Companies have long realized that in order to stay competitive in their industry, they have to focus and allocate their resources in primary functions such as strategic planning, sales, operation, marketing, etc. Although administrative work is a supporting function, it is however essential for the smooth running of the business. This daunting task of having to keep up with administrative work has forced more SMEs to outsource it to experienced BAO partners.
- It has been getting more difficult to recruit experienced local employees and the cost of hiring keeps increasing especially in a tight labour market.
- The time and effort spent to train an employee are wasted when they leave the company. The turnover rate for Administrative and Support Services employees is still among one of the highest, see table below.
- If there is no employee dedicated to the role of Admin & Support Services then the responsibilities of this role is shared by other employees. These employees will be unable to focus on their own key functions and tasks, wasting considerable amount of time dealing with administrative work which they are usually not familiar with.
- Without the dedicated employee in the Admin & Support Services role, the need to keep up to date with the complex changes in statutory regulations leave companies unsure of what need to be done and they sometimes even end up getting penalized.
- BAO is usually more cost effective and efficient as the company is able to save on operating and overhead cost. It allows them to allocate more budgets for the other activities such as sales, operations, marketing, etc.
- It eliminates the hassle of having to recruit, train and set up infrastructure (working space, computers and software, communications) for the administrative employees.
- Company’s key personnel are able to focus on their core activities, especially in acquiring new businesses, expansion and staying competitive in the industry.
- Company is ‘buying’ the expertise and know-how of qualified BAO partners and able to depend on them for sound advice and timely updates on any regulation changes.
- BAO provides for continuity as opposed to employing an in-house employee.
- Administrative (Basic)
- Company registered address;
- Document management (Digital/Filing);
- Call forwarding;
- Managing correspondence (Scan & Forward);
- Cheque recording and deposit service.
- Accounting/Bookkeeping (optional)
- AR & AP;
- Bank Reconciliation;
- Financial Reports.
- Compliance Matters (optional)
- Annual General Meeting;
- Corporate and Personal Tax.
- Employment Benefits (optional)
- Annual Leave;
- Make-up Pay claims.
When should I consider signing up for BAO?
The fact that you have read until here is already an indication that you do have a need to outsource some of your administrative functions and processes. NOW is the right time for you to contact us and discuss in detail on your needs and issues.