Why do companies need to optimize accounting or financial reporting processes?
Operating cash flow can be said to be the lifeblood of a for-profit enterprise. Every stage—from procurement, production, manufacturing, to sales—is closely related to cash flow.
Optimizing financial and accounting processes, from the perspective of internal management, can in the short term increase resource allocation efficiency and reduce the chances of errors; in the mid-term, it ensures the transparency and accuracy of financial information; and in the long term, it enables the enterprise itself to carry out more precise cash flow management, tax planning, or risk management.
From an external perspective, accurate financial statements can enhance the company's credibility and attract more external investors.
Many companies are stifled in the cradle at an early stage due to misguided financial and cash flow concepts, blind expansion, and inefficient resource allocation, eventually leading to a break in funding.
What is an ERP system? Is it the same as accounting software? Do companies have to implement it?
Accounting software mainly focuses on accounting and tax reporting purposes, with functions centered around invoicing and financial statements.
ERP (Enterprise Resource Planning) systems are integrated information systems that manage various resources within an enterprise. They centralize data from departments such as finance, accounting, human resources, procurement, inventory, production, and sales, enabling companies to effectively control processes, improve efficiency, and enhance decision-making quality.
Whether an ERP system needs to be implemented depends on the company's size, operational needs, and stage of growth. Smaller businesses may start with simplified systems, and as business complexity increases, upgrading to an integrated system will bring greater benefits.
What financial preparations are needed for a company planning to go public in Taiwan?
Once a company decides to pursue an IPO and enter the capital market, typical pre-listing preparation and evaluation work includes:
  1. Determining the listing venue, main requirements, and potential obstacles
  2. Planning of the holding structure, operational structure, and tax structure
  3. Evaluating and adjusting regulatory compliance, corporate governance, and internal control systems
  4. Selecting a counseling securities firm, accounting firm, and legal service team
What should my company pay attention to when converting from EAS (Enterprise Accounting Standards) to IFRS (International Financial Reporting Standards)?
During the process of accounting standards conversion, the first step is to prepare the opening IFRS balance sheet and to restate and adjust historical financial statements. The key accounts to be converted vary depending on the industry. Common differences in accounting items include leases (IFRS 16), financial instruments (IFRS 9), asset impairment, etc.
It is also necessary to disclose the accounting policy choices made during the conversion process and their impact on the financial statements, while further considering adjustments in taxation or internal control systems.
In practice, it is recommended that companies establish an IFRS conversion project team and work in collaboration with external consulting firms or accounting firms to carry out planning and testing, in order to reduce conversion risks and ensure a smooth transition to IFRS.
Do companies have to prepare their own financial statements?
According to the announcements made by the Taiwan Stock Exchange (TWSE) and the Taipei Exchange (TPEx) in 2019, it was reaffirmed that “the preparation of financial reports is the responsibility of listed companies.”
"Preparation" refers to the drafting of the four major financial statements, along with the accompanying notes and schedules, to be provided for review or audit by the certified public accountant.

Additionally, in 2020, the Financial Supervisory Commission (FSC) released the “Corporate Governance 3.0 – Sustainable Development Roadmap,” which promotes the phased disclosure of self-prepared annual financial information by listed companies, based on their paid-in capital size.

For companies that are not listed in Taiwan, it is still recommended to have the capability to prepare their own financial statements. This enables real-time monitoring of operational performance, improves internal management, and prepares the business for future growth and potential IPO.
Which key cycles should a public company establish internal control systems and annual audit plans for?
The nine major cycles for which internal control systems should be established are:
  1. Sale and Receipt Cycle
  2. Purchase and Payment Cycle
  3. Production Cycle
  4. Labor and Wage Cycle
  5. Financing Cycle
  6. Property, Plant, and Equipment Cycle
  7. Investment Cycle
  8. Research and Development Cycle
  9. Information Cycle
A public company should include the Sale and Receipt Cycle and the Purchase and Payment Cycle in its annual audit plan. Whether the other cycles are included in the annual audit plan is determined by the company based on the results of its risk assessment.
Is a financial staff still needed if accounting is outsourced?
Outsourced accounting can handle daily bookkeeping and tax filing, but it is still recommended that the company have at least one internal staff member who understands basic financial data, is responsible for communicating with the accounting service provider, reviewing invoices, and supervising cash flow.
For Taiwanese companies aiming to go public overseas (e.g., in the U.S.), what additional financial accounting preparations are required?
In addition to meeting Taiwan’s listing requirements, companies must comply with the stringent regulations of the target market. For example, in the U.S., this includes adherence to U.S. GAAP or IFRS, compliance with SEC filing requirements, and effectiveness testing of internal controls (in line with the Sarbanes-Oxley Act).

This typically requires significant adjustments in accounting policies, IT system integration, and regulatory compliance. It is recommended to engage an accounting firm or financial advisor with cross-border IPO experience.
How can financial data support strategic decision-making beyond bookkeeping?
Financial data is far more valuable than mere record-keeping. Through analyses such as trend analysis, peer benchmarking, budget variance analysis, and cash flow forecasting, companies can identify operational bottlenecks, evaluate project feasibility, anticipate funding needs, and even guide product pricing and market strategies—transforming financial insights into actionable strategic decisions.
If my company is considering an M&A transaction, what financial accounting risks and opportunities should we pay attention to?
During an M&A process, companies should focus on financial due diligence to assess the accuracy of the target company’s assets and liabilities, operating conditions, potential liabilities, and compliance risks. This is usually performed by accounting firms or external financial advisors. Post-acquisition considerations include accounting treatment (e.g., goodwill recognition and impairment), consolidated financial reporting, and system integration challenges.