Your research and development teams need every available dollar to push the boundaries of scientific discovery. Yet if you’re like most life sciences organizations, a significant portion of your budget goes to maintaining IT infrastructure and managing day-to-day technology operations rather than funding the innovation that drives your mission forward. 

The pressure to do more with less isn’t new, but the stakes keep rising. You’re facing stricter regulatory requirements, increasingly complex data management needs, and the constant demand to bring life-changing therapies to market faster. Meanwhile, your IT costs continue climbing, and finding qualified technology professionals who understand the unique demands of life sciences remains challenging. 

What if you could redirect those IT dollars toward breakthrough research while improving your technology capabilities?  

Transforming IT expenses from burden to strategic advantage 

When you partner with a managed IT provider, you’re not just outsourcing tasks; you’re fundamentally restructuring how you allocate resources across your organization. This shift creates tangible financial benefits that directly impact your ability to invest in R&D. 

Converting fixed costs into flexible investments 

Traditional in-house IT requires substantial upfront investments in infrastructure, software licenses, and personnel. These fixed costs burden your budget regardless of your actual needs at any given time. Managed IT services operate differently, allowing you to: 

• Scale technology resources up or down based on where you are in the research and development lifecycle 
• Pay only for the services and support you’re using 
• Avoid over-investment in specialized tools that sit idle between projects 
• Redirect capital previously tied up in IT infrastructure toward laboratory equipment, clinical trials, or additional research staff 

This pay-as-you-go model gives you the financial flexibility to respond quickly when unexpected research opportunities arise or when project timelines shift. 

Reducing hidden IT overhead 

Beyond the obvious costs of salaries and infrastructure, in-house IT departments carry hidden expenses that drain your innovation budget: 

• Continuous training to keep staff current with evolving technologies and compliance requirements 
• Recruitment expenses for specialized roles that are increasingly difficult to fill 
• Employee benefits and overhead costs that add 30-40% on top of base salaries 
• Regular hardware refreshes and software upgrades to maintain security and functionality 

A managed IT provider absorbs these costs across their entire client base, giving you access to enterprise-grade technology and specialists at a fraction of what you’d pay to build comparable capabilities internally. 

Discover more about our Managed IT services

Accessing specialized skills without the recruitment challenges 

The life sciences sector requires IT professionals who understand not just technology, but the specific compliance frameworks, data integrity requirements, and workflow complexities unique to your industry. Finding these specialists (and retaining them) presents an ongoing challenge. 

Leveraging industry-specific IT knowledge 

Managed IT providers specializing in life sciences bring professionals who already understand your world. They’re familiar with: 

• Laboratory information management systems (LIMS) and electronic lab notebooks (ELN) 
• Clinical trial management systems (CTMS) and electronic data capture (EDC) 
• Good Laboratory, Clinical, and Manufacturing Practices (GLP, GCP, GMP) requirements 
• FDA 21 CFR Part 11 compliance and data integrity standards 
• Specialized analytical instruments and their integration requirements 

This immediate understanding means less time explaining your needs and faster implementation of solutions that work correctly from the start. 

Building capabilities without building headcount 

Rather than hiring multiple specialists to cover every aspect of your IT needs, you gain access to an entire team with diverse skills. Need someone who understands both cloud architecture and pharmaceutical manufacturing systems? They’re available. Looking for cybersecurity specialists who know HIPAA compliance inside and out? They’re part of the package. 

This breadth of capability would be prohibitively expensive to replicate in-house, yet it’s readily available through a managed services model. 

Scaling IT resources to match your research cycles 

Life sciences organizations experience dramatic fluctuations in IT demands. A clinical trial launch requires intensive support. A laboratory expansion needs rapid infrastructure deployment. An acquisition brings integration challenges. Your technology needs don’t follow a predictable pattern, yet traditional IT staffing forces you to size your team for peak demand. 

Managed IT services solve this fundamental mismatch between static resources and dynamic needs: 

• Quickly scale support during critical project phases like regulatory submissions or clinical trial initiations 
• Access specialized resources for temporary needs without permanent hiring commitments 
• Adjust service levels as your organization grows through new product development or geographic expansion 
• Respond to unexpected challenges without pulling research staff into IT problem-solving 

This flexibility means you’re neither overstaffed during quiet periods nor scrambling for support when it matters most. 

Strengthening compliance while reducing risk 

The life sciences regulatory environment grows more complex every year. Your technology systems must not only meet current requirements but adapt quickly as regulations evolve. Managed IT providers specializing in your industry stay ahead of these changes, protecting your organization from compliance gaps that could delay product approvals or trigger regulatory actions. 

Maintaining GxP compliance across systems 

From discovery through manufacturing, your systems must maintain data integrity and meet Good Practice standards. A managed IT provider with life sciences focus brings: 

• Pre-validated infrastructure and processes designed for regulatory requirements 
• Automated audit trails that document all system activities 
• Change control procedures that meet FDA and EMA expectations 
• Regular compliance assessments to identify and address potential gaps 

This foundation of compliance reduces your risk while freeing compliance teams to focus on product quality rather than IT system validation. 

Implementing robust data security 

Research data, intellectual property, and patient information represent your most valuable and vulnerable assets. Managed IT providers implement multiple layers of protection: 

• Advanced encryption for data at rest and in transit 
• Multi-factor authentication and granular access controls 
• 24/7 monitoring of potential security threats 
• Regular penetration testing and vulnerability assessments 
• Comprehensive disaster recovery and business continuity planning 

These security measures would require significant investment to build internally, yet they’re standard components of managed IT services designed for life sciences organizations. 

Making the transition strategically 

Moving to managed IT services requires thoughtful planning to maximize benefits while minimizing disruption. Your approach should align with your business objectives and account for the specific complexities of life sciences operations. 

Choose a provider with demonstrated life sciences proficiency Look beyond general IT capabilities to find partners who genuinely understand your industry. They should have experience with your specific regulatory requirements, familiarity with the systems you use, and references from organizations like yours. 

Start with clear success metrics Define what improved efficiency looks like for your organization. Are you measuring cost savings? Reduction in system downtime? Faster response to IT issues? Speed of deploying new capabilities? Establish baseline metrics before transitioning so you can quantify the value managed services deliver. 

Plan for integration with existing operations Managed IT services work best when they integrate seamlessly with your existing processes and remaining internal capabilities. Develop clear communication protocols, escalation procedures, and coordination mechanisms that keep everyone aligned. 

Build in continuous improvement The technology landscape and your organizational needs will evolve. Structure your managed services relationship to include regular reviews, performance assessments, and strategy updates that keep your IT capabilities aligned with your R&D priorities. 

Redirecting resources where they create the most value 

At BPM, we understand that every dollar counts in life sciences, especially when it comes to funding the research and development that drives your organization’s purpose. Our managed IT services approach helps biotech and pharmaceutical companies restructure their technology investments to support innovation rather than constrain it. 

We bring deep experience working with life sciences organizations navigating the complex intersection of technology, compliance, and scientific advancement. Our team understands your regulatory environment, your data integrity requirements, and your need for IT systems that enable rather than impede research progress. 

Whether you’re looking to reduce IT costs, access specialized capabilities, or free up internal resources for strategic initiatives, we can help you develop a managed services approach that aligns with your business objectives and supports your R&D mission. 

Ready to explore how managed IT services can free up resources for innovation? Contact BPM to discuss your technology needs and learn how we can help your life sciences organization invest more in research and less in IT overhead. 

As governments worldwide implement aggressive climate policies and invest heavily in renewable energy infrastructure, American cleantech firms are uniquely positioned to capitalize on this global momentum. However, expanding into international markets requires careful planning, strategic partnerships, and deep understanding of local regulations and market dynamics. 

Key global expansion strategies for cleantech international expansion 

This article will explore proven strategies for successful international expansion, from market selection and regulatory navigation to financing options and partnership development. 

Identifying high-potential markets 

The first step in any successful global expansion involves thorough market research and strategic prioritization. Cleantech companies should evaluate potential markets based on several key factors:  

• Government policy support 
• Existing infrastructure 
• Competitive landscape 
• Cultural alignment with American business practices. 

European market considerations 

European markets, particularly Germany, the Netherlands, and the Nordic countries, often serve as ideal entry points due to their mature renewable energy policies and strong environmental commitments. These regions offer established regulatory frameworks and sophisticated customer bases already familiar with cleantech solutions. 

Asian and emerging market considerations 

Asian markets present different opportunities and challenges. Countries like South Korea, Japan, and Singapore have aggressive clean energy targets but require more nuanced approaches to relationship building and regulatory compliance. Meanwhile, emerging markets in Southeast Asia and Latin America offer significant growth potential but demand greater risk management and local partnership strategies.  

Navigating regulatory landscapes 

Each target market brings unique regulatory requirements that can make or break expansion efforts. US cleantech companies must invest time and resources in understanding local environmental standards, certification processes, and compliance obligations before committing significant capital. 

Essential compliance requirements 

Working with local legal counsel becomes essential early in the process. These professionals help navigate complex approval processes, understand import/export requirements, and ensure products meet regional safety and performance standards. Many companies underestimate the time required for regulatory approval, leading to delayed market entry and increased costs. 

Building local stakeholder relationships 

Smart companies also engage with local industry associations and government agencies during the planning phase. Building relationships with key stakeholders before launching products creates smoother pathways through bureaucratic processes and demonstrates commitment to long-term market participation. 

Strategic partnership development 

Successful international expansion rarely happens in isolation. US cleantech companies benefit significantly from forming strategic alliances with established local partners who bring market knowledge, distribution networks, and regulatory relationships. 

Distribution partnerships 

Distribution partnerships offer immediate access to established sales channels and customer relationships. Local distributors understand regional purchasing behaviors, pricing expectations, and service requirements that American companies might overlook. However, selecting the right partners requires careful due diligence and clear contractual agreements about territories, performance metrics, and support responsibilities.  

Joint ventures 

Joint ventures represent another powerful expansion strategy, particularly in markets with foreign ownership restrictions or complex regulatory environments. These arrangements allow US companies to leverage local knowledge while maintaining operational control over technology and quality standards. 

Manufacturing alliances 

Manufacturing partnerships can significantly reduce operational costs and improve supply chain efficiency. Establishing local production capabilities helps companies avoid tariffs, reduce shipping costs, and respond more quickly to market demands. However, intellectual property protection becomes paramount in these arrangements. 

Financing international growth 

Expanding globally requires substantial capital investment, and US cleantech companies have access to various funding sources specifically designed for international expansion.  

• The Export-Import Bank of the United States offers financing programs that help American companies compete internationally by providing credit to foreign buyers of US goods and services. 
• Private equity and venture capital firms increasingly focus on cleantech companies with international growth potential. These investors bring not only capital but also valuable strategic guidance and network connections that can accelerate market entry and partnership development. 
• Government grants and tax incentives also support international expansion efforts. Programs like the Small Business Administration’s export assistance initiatives provide both financial support and educational resources for companies entering new markets. 

Building sustainable operations 

Long-term success in international markets requires building sustainable operational capabilities that can adapt to local conditions while maintaining quality standards. This often means establishing local management teams, customer service capabilities, and supply chain relationships. 

Technology infrastructure becomes particularly important for cleantech companies operating across multiple time zones and regulatory environments. Effective coordination between US headquarters and international operations requires robust technology infrastructure, including: 

• Data management systems for centralized information processing and storage 
• Remote monitoring capabilities for real-time oversight of international assets 
• Digital communication platforms for seamless collaboration across time zones and markets 

Partnering with BPM for global expansion 

Successfully expanding your cleantech company internationally requires navigating complex legal, financial, and operational challenges that can overwhelm internal teams. BPM brings deep industry knowledge and proven international expansion strategies to help US cleantech companies achieve their global growth objectives while minimizing risks and maximizing returns. 

Our multidisciplinary approach combines legal, tax, and advisory services specifically tailored to the unique needs of growing cleantech businesses. From initial market assessment through operational setup and ongoing compliance, we provide the strategic guidance and practical support you need to build sustainable international operations. To discuss how we can help accelerate your global expansion plans, contact us.  

The One Big Beautiful Bill Act has introduced game-changing enhancements to family-focused benefits that create openings for HR leaders to strengthen their value proposition. Two provisions in particular—the permanent establishment of the Family and Medical Leave Credit and significant improvements to the Adoption Tax Credit—represent powerful tools for organizations committed to supporting working families through life’s most important moments. 

These changes go beyond simple tax adjustments. They create strategic HR cost optimization opportunities for employers to differentiate themselves in competitive talent markets while demonstrating genuine commitment to work-life balance and family support.  

For HR professionals and benefits administrators, understanding and leveraging these enhancements can transform your organization’s approach to family benefits and employee retention. 

Family and Medical Leave Credit: A permanent competitive advantage 

The OBBBA permanently establishes the employer credit under Code section 45A for wages paid to qualifying employees on family and medical leave, beginning in 2026. To receive this credit, employers must either directly pay employees during leave periods or maintain private insurance policies (such as short-term disability plans) that provide these leave payments.  

This represents a fundamental shift from temporary policy to permanent strategic tool, allowing organizations to plan long-term family leave strategies with confidence while choosing the payment method that best fits their current benefits structure. 

Understanding the permanent credit structure 

Beginning in 2026, eligible employers may claim a tax credit as part of the general business tax credit for up to 25% of either wages paid to qualifying employees during family and medical leave periods or the total amount of premiums paid for insurance policies that provide paid family and medical leave. 

This dual-option structure provides unprecedented flexibility in benefit design. Organizations can choose the approach that best aligns with their current benefits architecture while maximizing tax advantages. 

Key credit features include: 

• Credit rate: Up to 25% of qualifying wages or insurance premiums 
• Employee eligibility: Full or part-time employees (at least 20 hours per week) who have worked for at least six months 
• Income limitations: Credit applies to employees earning under specific thresholds ($96,000 for 2026) 
• Leave duration: Minimum two weeks of paid leave annually (adjusted for part-time workers) 
• Wage replacement: At least 50% of regular wages during leave periods 

Strategic implications for HR leaders 

The permanent nature of this credit transforms family leave from a cost center into a strategic investment with measurable tax benefits. This provision offers meaningful support for working family caregivers and helps create workplace policies that recognize the growing need to balance work and family obligations. 

Consider the broader context: Seventy percent of working-age caregivers are navigating the dual responsibilities of paid employment and caregiving, according to a joint report by AARP and the National Alliance for Caregiving. This creates enormous opportunity for organizations that can provide comprehensive family leave support. 

Implementation strategies for family leave programs 

The permanent nature of the Family and Medical Leave Credit creates opportunity for comprehensive program development that organizations can build and refine over time. 

Program design considerations 

Effective family leave programs require careful design to maximize both employee value and tax credit benefits: 

Eligibility requirements: 

• Determine optimal employment period (6-12 months) based on organizational needs 
• Establish clear documentation requirements for qualifying leave 
• Create processes for coordinating with existing FMLA obligations 

Benefit structure: 

• Decide between wage-based or insurance-premium-based credit election 
• Establish wage replacement percentages (minimum 50% required for credit)
• Design leave duration policies that meet credit requirements while supporting employee needs 

Administrative systems: 

• Implement tracking systems for credit-eligible wages and leave periods 
• Establish coordination procedures with payroll and benefits administration
• Create documentation processes for credit substantiation 

Coordination with existing benefits 

The Family and Medical Leave Credit works alongside existing benefits rather than replacing them: 

• FMLA coordination: Credit-eligible leave can run concurrently with FMLA leave 
• State law compliance: Programs must meet or exceed state-mandated requirements while claiming credit for voluntary enhancements 
• Disability integration: Coordinate with short-term disability benefits to avoid gaps or overlaps 
• PTO policies: Consider how paid family leave interacts with existing paid time off programs 

Enhanced flexibility provisions 

The permanent credit includes several enhancements that make it more accessible and valuable than previous iterations: 

• State law coordination: Employers can receive the credit for leave provided in states that don’t mandate paid leave, and receive credit for any paid leave provided in excess of that mandated by state or local law 
• Insurance premium option: Organizations can elect to claim credit for insurance premiums rather than direct wage payments, providing greater flexibility in benefit delivery 

• Reduced qualification period: Employers can choose to shorten employee qualification for paid family and medical leave to 6 months of employment instead of requiring a full 12 months 

Adoption credit improvement: Supporting growing families 

The tax credit for adoption expenses was modified to make $5,000 of the maximum credit refundable, with inflation adjustments beginning in 2025. This enhancement transforms the adoption credit from a liability-reduction tool into a meaningful financial support mechanism for families regardless of their tax situation. 

Understanding the refundable enhancement 

Up to $5,000 of the adoption credit becomes refundable, meaning dollars could be returned as a refund even if families have limited tax liability. This amount will be adjusted for inflation annually, with the total credit remaining up to $17,280 in 2025. 

The refundable nature addresses a critical gap in previous adoption support. Many families pursuing adoption—particularly younger families or those with modest incomes—previously couldn’t fully utilize the credit due to insufficient tax liability. The refundable portion eliminates this barrier. 

Expanded accessibility for working families 

As a partially refundable tax break, families may receive part of the credit as a tax refund, even if their tax liability is zero. This creates meaningful financial support during the adoption process, when families often face significant upfront expenses. 

The credit structure for 2025 includes: 

• Maximum credit: $17,280 per adoption 
• Refundable portion: Up to $5,000 (inflation-adjusted) 
• Income phase-out: Begins at $259,190 MAGI, completely phases out at $299,190 MAGI 
• Effective date: Enhancements apply to taxable years beginning after December 31, 2024 

Strategic considerations for employers 

While the adoption credit is an individual tax benefit rather than an employer-provided program, savvy HR leaders can leverage this enhancement in several ways: 

• Employee education: Provide information about the enhanced credit as part of comprehensive financial wellness programs 
• Adoption assistance coordination: Align employer-provided adoption assistance with the enhanced tax credit for maximum family benefit 
• Communication strategy: Highlight awareness of family-building support as part of broader work-life balance messaging 
• Benefits integration: Consider how adoption support fits within broader family benefits strategies 

Transform your family benefits strategy with BPM 

The One Big Beautiful Bill Act’s family-focused enhancements represent a generational opportunity to strengthen your organization’s support for working families while generating meaningful tax benefits. The permanent establishment of the Family and Medical Leave Credit and the enhanced Adoption Tax Credit create powerful tools for differentiation in competitive talent markets. 

At BPM, our HR advisory and tax specialists understand how to integrate these enhancements into comprehensive family benefits strategies that maximize both employee value and organizational return on investment. Whether you’re designing new family leave programs, optimizing existing benefits for tax credit eligibility, or developing comprehensive family support initiatives, we can help you navigate the complexities while capturing every available opportunity. 

From program design and compliance documentation to system integration and ongoing optimization, our team provides the strategic guidance and technical support necessary to transform these legislative changes into competitive advantages for your organization. 

Ready to build a family benefits strategy that works for everyone? Contact BPM today to schedule a consultation with our Benefit Consulting Team. Together, we can develop comprehensive programs that support your employees through life’s most important moments while generating meaningful tax benefits for your organization. 

Choosing the wrong SOC report can cost your organization months of wasted effort and thousands in audit fees. While both SOC 1 and SOC 2 reports demonstrate your commitment to strong internal controls, they serve fundamentally different purposes and audiences.  

• SOC 1 assesses how your financial data processing affects your clients’ financial statements. 
• SOC 2 addresses broader operational concerns like data security and system availability, addressing questions your clients have about how you protect their data. 

Understanding these distinctions is crucial for selecting the right attestation and reporting framework—one that not only meets your stakeholder requirements but also positions your organization for sustainable growth in an increasingly security-conscious marketplace. 

Take a look at our System and Organization Controls Reporting Services

Breaking down SOC 1 vs SOC 2 reports 

Any SOC (System and Organization Controls) report provides independent attestation of your organization’s internal controls, but each type serves different purposes and audiences. These reports help your customers demonstrate to their own auditors and stakeholders that the services you provide maintain appropriate controls and safeguards. 

SOC 1 reports 

If your services could affect how your clients report their financials, SOC 1 is likely what you need. A SOC 1 report has a financial focus and evaluates the controls implemented by a service organization that could impact the accuracy and reliability of its clients’ financial statements. 

Think payroll processing, billing services, or claims administration—anywhere your work integrates with your clients’ accounting systems. These reports help your clients’ auditors and management teams gain confidence that your services are operating effectively and won’t introduce risks to their financial reporting. 

SOC 2 reports 

SOC 2 reports take a broader operational approach, evaluating the effectiveness of an organization’s controls for safeguarding data and ensuring reliable operations—areas generally overseen by IT and other operational teams. Based on the AICPA’s Trust Services Criteria, SOC 2 examines:  

• Security (mandatory) 
• Availability 
• Processing integrity 
• Confidentiality 
• Privacy.  

Your organization can choose which criteria apply to your services, though security is always required. 

Selecting the time period covered by the report 

Both report types offer Type 1 and Type 2 options. These options provide you with a flexible way to scale up or down the amount of time being evaluated. 

• Type 1 reports evaluate the design of controls as of a specific date that you select. This tells you whether the controls in place are suitably designed at a point in time. It does not tell you if these controls are operating effectively over time. 
• Type 2 takes more time and resources, but it’s also more valuable to your customers. Enterprise companies or certain industries like finance often prefer to work with companies that have a SOC 2 Type 2 report because it let’s them know that the controls you have designed are operating effectively over a specified period. 

When SOC 1 reports are the right choice for your organization 

A SOC 1 report is designed for service organizations whose operations may impact their customers’ financial reporting. This is important because clients rely on your services to produce accurate financial data. If errors occur due to control deficiencies in your processes, it could lead to material misstatements in their financial statements, which may expose them to fraud and lawsuits. Your organization may need a SOC 1 report if you: 

Provide financial transaction processing 

Companies offering payroll processing, claims administration, billing services, or loan servicing typically require SOC 1 reports. When you process financial data that flows into your clients’ accounting systems or financial statements, their auditors need reasonable assurance that your controls maintain data accuracy and completeness.  

Face regulatory pressure 

Regulatory and contractual requirements often drive SOC 1 needs. Many financial services organizations face regulations requiring them to obtain reasonable assurance over outsourced financial processes.  

Additionally, public companies subject to Sarbanes-Oxley requirements must ensure that all service organizations handling financial data maintain adequate internal controls. Your clients’ external auditors will specifically request SOC 1 reports to fulfill their audit obligations. 

Want customized control objectives 

Unlike other frameworks with predefined control requirements, a SOC 1 engagement allows you to develop custom control objectives that reflect the services you provide and their potential impact on your clients’ internal control over financial reporting (ICFR). 

You and your auditor work together to define these objectives, then identify the specific controls that achieve them. The auditor tests those controls and reports on whether they were suitably designed and operating effectively during the examination period. 

When SOC 2 reports are the right choice for your organization 

SOC 2 reports are especially valuable if your business handles customer data or delivers technology-enabled services where security, availability, and operational reliability are critical. 

Many enterprises include SOC 2 reports as part of their vendor due diligence—industry studies show that over 80% of enterprise buyers expect a SOC 2 report before onboarding new vendors, making it a key differentiator when pursuing enterprise deals. Your organization need a SOC 2 report if you: 

Handle sensitive customer data  

Any business that stores, processes, or transmits customer information—whether that’s personal data, payment details, or proprietary business information—typically needs a SOC 2 report.  

The strength of SOC 2 lies in its flexibility: while the Security category (protecting systems from unauthorized access) is always required, you can select the other Trust Services Criteria (TSC)—Availability, Processing Integrity, Confidentiality, and Privacy—based on what’s relevant to your services. 

Within those chosen criteria, you define and implement your own controls that demonstrate how your organization meets the applicable criteria, and the auditor evaluates whether those controls were suitably designed and operating effectively during the review period. 

Serve enterprise customers  

Enterprise buyers increasingly view SOC 2 reports as table stakes for vendor relationships. These organizations need assurance that their service providers maintain adequate controls over data security and system availability. Without a SOC 2 report, you may find yourself automatically disqualified from RFPs or spending countless hours filling out individual security questionnaires for each prospect. 

Want competitive differentiation  

A SOC 2 report can become a powerful sales tool, especially in competitive markets where security concerns influence buying decisions. For one thing, it helps support customer trust. A SOC 2 report reassures prospects and clients that their data is secure, often becoming a dealbreaker in sales cycles. It may even help support premium pricing.  

Ongoing SOC reporting considerations 

The regulatory environment around data protection and cybersecurity keeps evolving, with new requirements emerging regularly. Organizations must stay current with changes that affect their SOC reporting needs.  

Some companies are expanding beyond traditional SOC 2 to include SOC for Cybersecurity or enhanced SOC 2+ reports that address specific industry frameworks like NIST, HITRUST, or GDPR requirements. 

Multi-national organizations face additional complexity when determining SOC scope and criteria. Different regions have varying data protection requirements—such as GDPR in Europe or CCPA in California—that may influence which Trust Services Criteria you need to include in your SOC 2 report. Working with experienced auditors who understand these regional differences becomes crucial for organizations serving global markets. 

Tips to select the right reporting structure for your business 

Choosing between SOC 1 and SOC 2 isn’t always straightforward, especially if you’re new to compliance reporting. The good news? You can use a simple framework to evaluate your needs and make the right decision for your business. 

Start with your business model  

Begin by looking at who your customers and stakeholders are, and what type of services you provide to them. 

If your services could affect your customers’ internal control over financial reporting (ICFR)—for example, handling financial transactions, payroll, or accounting data—a SOC 1 report is usually the right fit. 

If your services involve hosting, storing, processing, or securing customer data, and your customers are more concerned about security, availability, or confidentiality, a SOC 2 report is typically more appropriate. 

Listen to your customers and prospects  

Your clients will often tell you exactly what kind of SOC report they expect. When in doubt, think about which type of risk your services create for them: 

• Do your services affect their financial reporting? (→ SOC 1) 
• Do your services handle or protect their data and systems? (→ SOC 2) 

Most customers will expect you to demonstrate strong controls, especially around data security, access management, and operational reliability if you’re pursuing SOC 2, or controls impacting financial reporting if SOC 1 is more relevant. 

Pay attention to: 

• Security questionnaires you’re receiving 
• RFP requirements that mention specific SOC reports 
• Contractual language about compliance expectations 
• Industry standards in your sector 

Consider your timeline and resources  

SOC 1 and SOC 2 Type 1 reports can be completed relatively quickly—often within 2-4 months. Type 2 reports require at least six months of control operation before the examination, plus additional time for testing.  

Evaluate cost versus benefit  

Don’t just think about audit costs—consider the opportunity cost of not having the right report. Missing out on enterprise deals because you lack SOC 2 can far exceed the cost of compliance.  

Similarly, if your clients’ auditors specifically need SOC 1 for their financial statement audits, having only SOC 2 won’t solve their problem. 

Plan for the future  

Based on the industry you operate in, you may want to further add certifications such as  

• Health Insurance Portability and Accountability Act (HIPAA),  
• Federal Risk and Authorization Management Program (FedRAMP),  
• Cyber Security Maturity Model (CMMC) 
• Health Information Trust Alliance (HITRUST) 

Think about where your business is heading. Are you planning to expand into new markets or serve larger clients? Starting with the right SOC foundation makes it easier to add additional compliance frameworks later. 

Take the next step in your SOC compliance strategy 

The choice between SOC 1 and SOC 2 ultimately comes down to understanding your business model, client needs, and growth trajectory.  

Remember that these aren’t mutually exclusive options. Many service organizations benefit from both reports, using SOC 1 for financial processes and SOC 2 for technology services. The key is starting with the most critical needs and building your compliance program over time. 

BPM’s IT assurance professionals bring deep industry expertise and a commitment to quality that helps you build stakeholder trust. Whether you need SOC 1, SOC 2, or guidance on which path makes sense for your organization, contact our Risk Assurance team to explore personalized compliance solutions that support your business growth. 

Growing companies face a critical challenge: scaling their operations while maintaining the culture, compliance, and talent management that drove their initial success. Your HR strategy must evolve as your business does, transforming from a support function into a strategic growth driver. 

Companies that fail to scale their HR capabilities alongside their business growth often find themselves struggling with talent acquisition, compliance issues, and organizational inefficiencies that can derail expansion efforts.  

This article will explore how to an HR transformation strategy can support growth, the risks of maintaining outdated approaches, and the strategic value of partnering with HR consultants. 

The evolution from reactive to strategic HR 

Most growing companies start with HR handling basic administrative tasks: payroll processing, employee onboarding, and policy enforcement. This reactive approach works when you have 20 employees, but it becomes a bottleneck when you reach 100 or more. 

Strategic HR transformation requires you to shift from asking “How do we handle this HR issue?” to “How does our people strategy drive business growth?” This fundamental change in perspective positions HR as a revenue enabler rather than a cost center. 

Your HR function needs to anticipate workforce needs, not just respond to them. This means developing workforce planning capabilities that align with your business strategy and growth projections. 

Discover more about our HR strategy services

Key HR transformation areas for growing companies 

Workforce planning and talent pipeline development 

Growing companies need systematic approaches to talent acquisition that go beyond posting job openings when positions become vacant. You must build talent pipelines before you need them, identifying key roles that will drive growth and developing relationships with potential candidates. 

Create succession plans for critical positions and establish leadership development programs that prepare your current employees for expanded responsibilities. This internal talent development approach reduces hiring costs and maintains institutional knowledge during rapid growth phases. 

Scalable processes and technology implementation 

Your HR processes must work efficiently whether you have 50 employees or 500. Manual processes that seem manageable at smaller scales become impossible to maintain as you grow. Implement HR technology platforms that automate routine tasks while providing data insights that inform strategic decisions. 

Standardize your hiring processes, performance management systems, and employee development programs. These standardized approaches ensure consistency across different locations and departments while reducing the risk of compliance violations. 

Learn more about our BPM employee performance management platform

Compliance management across multiple jurisdictions 

Growing companies often expand into new states or regions, each with distinct employment laws and regulations. Your HR strategy must account for these varying requirements while maintaining consistent company culture and policies. 

Develop compliance frameworks that address federal, state, and local employment laws. This includes understanding wage and hour regulations, leave policies, and anti-discrimination requirements across all jurisdictions where you operate. 

The risks of inadequate HR transformation strategy scaling 

Companies that fail to scale their HR capabilities face significant risks that can impede growth or create costly legal issues. These risks compound as organizations grow, making early investment in strategic HR capabilities essential. 

Talent acquisition bottlenecks 

Without strategic workforce planning, growing companies struggle to attract and retain top talent. Your competitors with more sophisticated HR approaches will consistently outperform you in talent acquisition, limiting your ability to execute growth plans. 

Poor hiring processes also increase the risk of bad hires, which cost companies significant time and resources while potentially damaging team dynamics and productivity. 

Compliance violations and legal exposure 

Growing companies face increasing regulatory complexity as they expand their workforce and geographic footprint. Employment law violations can result in significant financial penalties, legal costs, and reputational damage that undermines growth efforts. 

Cultural erosion and employee disengagement 
Rapid growth without strategic HR support often leads to cultural dilution and decreased employee engagement. Long-term employees may feel disconnected from the company they joined, while new hires struggle to understand and embrace your organizational culture. 

The strategic value of HR consulting partnerships 

Growing companies often lack the internal resources and specialized knowledge needed to transform their HR capabilities effectively. Partnering with HR consultants provides access to strategic guidance and implementation support that accelerates your transformation timeline. 

HR consultants bring proven methodologies for scaling HR functions, helping you avoid common pitfalls that can derail growth efforts. They provide objective assessments of your current capabilities and develop customized strategies that align with your specific business objectives. 

“Organizations are surprised to find how strategic efforts can help to streamline, automate, and elevate the HR function, frequently leading to game changing results.   This does not have to be a long term cost prohibitive endeavor but  frequently is a short term opportunity,” says Jill Pappenheimer, BPM’s HR Consulting Partner. 

These partnerships also provide access to specialized knowledge in areas like: 

• Employment law compliance 
• Compensation strategy 
• Organizational development  

Most growing companies cannot afford to maintain in-house personnel who possess this knowledge. 

Partnering with BPM for strategic HR transformation 

BPM understands the unique challenges growing companies face when scaling their HR capabilities. Our team provides comprehensive HR consulting services that transform your people strategy into a competitive advantage, ensuring compliance while driving sustainable growth.  

We work with you to develop scalable HR processes, implement strategic workforce planning, and create compliance frameworks that protect your organization as you expand. Our proven methodologies help you avoid costly mistakes while accelerating your transformation timeline. To discuss how our HR consulting services can help your company scale effectively while maintaining the culture and compliance standards that drive long-term success, contact us.   

Software companies face unique challenges when building for growth. Managing recurring revenue streams, handling complex subscription models, and scaling operations across multiple markets requires more than basic accounting software. You need a platform that grows with your business while maintaining operational efficiency. NetSuite for software companies deliver this foundation.  

6 ways NetSuite helps technology companies scale 

NetSuite addresses the specific needs of software companies by centralizing operations, automating critical processes, and providing real-time visibility into business performance. This article explores how NetSuite creates the scalable infrastructure software companies need to support sustainable growth. 

1. NetSuite eliminates operational silos 

Your software company likely uses different systems for sales, customer support, financials and project management. This fragmented approach creates data inconsistencies, duplicate entries, and limited visibility across departments. As you scale, these silos become major bottlenecks. 

NetSuite consolidates all business functions into a single platform. Your sales team, finance department and customer success managers work from the same data source. This integration eliminates manual data transfers and reduces errors that typically occur when information moves between systems. 

The unified approach also streamlines reporting. Instead of pulling data from multiple sources to create financial reports or track key metrics, you access everything from one dashboard. This saves time and ensures accuracy across all business functions. 

2. Cloud architecture supports unlimited growth 

Traditional on-premises systems require significant infrastructure investments as your company grows. You need additional servers, storage capacity, and IT resources to handle increased transaction volumes. NetSuite’s cloud-based architecture eliminates these constraints. 

The platform automatically scales to accommodate growing transaction volumes, expanding product lines, and increasing customer bases. Whether you’re processing 100 or 100,000 transactions per month, NetSuite handles the load without performance degradation. 

This scalability extends beyond transaction processing. You can add new subsidiaries, product lines, or business units without system limitations. The modular design allows you to activate additional features as your business requirements evolve. 

3. Automated processes reduce manual workload 

Manual processes that work for small teams become overwhelming as your software company scales. Invoice generation, revenue recognition and subscription management consume increasing amounts of time as customer bases grow. 

NetSuite automates these critical processes. Recurring billing automatically generates invoices based on subscription terms. Revenue recognition follows accounting standards without manual calculations. Order-to-cash processes flow seamlessly from initial sale to payment collection. 

This automation frees your team to focus on strategic initiatives rather than repetitive tasks. Your finance team spends less time on data entry and more time on analysis and planning. Customer success teams can concentrate on relationship building instead of billing issues. 

4. Global capabilities enable international expansion 

Expanding into international markets introduces complexity around currencies, tax regulations and compliance requirements. Managing these requirements across multiple systems becomes increasingly difficult as you enter new regions. 

NetSuite handles multi-currency transactions natively. The system automatically converts currencies, tracks exchange rates, and maintains accurate financial records across all markets. Multi-language capabilities support local customers and employees in their preferred languages.  

Built-in compliance features address local tax and regulatory requirements. Whether you’re dealing with VAT in Europe, GST in Australia or other regional requirements, NetSuite maintains compliance without additional software or custom development. 

5. Real-time analytics drive informed decisions 

Growing software companies need accurate data to make informed decisions about product development, market expansion and resource allocation. Delayed or inaccurate information can lead to costly mistakes or missed opportunities. 

NetSuite provides real-time access to business data through customizable dashboards and reports. You can track key performance indicators, monitor customer satisfaction metrics, and analyze product performance as events occur. This immediate visibility enables quick responses to market changes or operational issues. 

The analytics capabilities extend beyond standard reporting. You can create custom dashboards for different roles and departments, ensuring everyone has access to relevant information. Advanced analytics help identify trends and patterns that support strategic planning. 

Learn more about our NetSuite consulting

6. Flexible pricing adapts to business models 

Software companies often evolve their business models as they grow. You might transition from perpetual licenses to subscription-based pricing, add professional services, or introduce new product tiers. Your ERP system needs to accommodate these changes without major overhauls. 

NetSuite’s flexible pricing and billing capabilities support various business models. The system handles one-time purchases, recurring subscriptions, usage-based billing, and hybrid models. As your pricing strategy evolves, NetSuite adapts without requiring system replacements. 

Working with BPM on NetSuite for software companies success 

Implementing NetSuite requires careful planning and deep understanding of both the platform and your business requirements. BPM brings extensive experience helping software companies leverage NetSuite for scalable growth. Our team works closely with you to configure the system properly, migrate data accurately, and train your team effectively. 

We understand the unique challenges software companies face during rapid growth periods. Our proven implementation methodology ensures NetSuite delivers the scalable foundation your business needs while minimizing disruption to ongoing operations. To discuss how NetSuite can support your company’s growth objectives and schedule a consultation to explore your specific requirements contact us. 

Business leaders today juggle more complexity than ever before — from managing growth and maintaining operational efficiency to staying competitive in markets that change seemingly overnight. As a result, many organizations find themselves juggling multiple software systems, struggling with data silos and spending countless hours on manual processes that drain productivity and resources. 

NetSuite addresses these pain points by offering a comprehensive, cloud-based business management platform that unifies all core business functions into a single system.  

Why companies choose NetSuite 

Companies across industries turn to NetSuite when they need scalable solutions that grow with their business, streamline operations and provide real-time visibility into performance metrics. This article explores the eight primary reasons why companies choose NetSuite to transform their business operations. 

1. Unified platform eliminates data silos 

Companies choose NetSuite because it consolidates business functions into one integrated platform. Instead of managing separate systems for accounting, customer relationship management, inventory and human resources, NetSuite brings everything together under one roof. 

This unified approach eliminates the data silos that plague many organizations. Your sales team can instantly access customer purchase history while your accounting department simultaneously views the same customer’s payment status. Manufacturing teams see real-time inventory levels that purchasing departments update automatically. 

The elimination of data silos means your team stops wasting time searching for information across multiple systems and starts making decisions based on complete, accurate data. 

2. Cloud-native architecture delivers flexibility and reliability 

NetSuite’s cloud-native design provides companies with unprecedented flexibility and reliability. You access your business data from anywhere, at any time, using any device with an internet connection. This accessibility is crucial for remote teams, field workers and executives who travel frequently. 

The cloud infrastructure also means you never worry about server maintenance, software updates or system backups. NetSuite handles all technical aspects while you focus on running your business. Automatic updates ensure you always have access to the latest features and security enhancements without downtime or disruption. 

3. Scalable solution grows with your business 

Companies choose NetSuite because it scales seamlessly as they grow. Whether you’re a startup planning expansion or an established company entering new markets, NetSuite adapts to your changing needs without requiring a complete system overhaul. 

You can add new users, expand into additional locations, incorporate new subsidiaries and integrate new business processes without switching platforms. This scalability eliminates the costly and disruptive cycle of outgrowing software systems and migrating to new solutions every few years. 

4. Real-time reporting and analytics drive informed decisions 

NetSuite provides real-time reporting and analytics capabilities that transform how companies make decisions. Instead of waiting days or weeks for month-end reports, you access current business performance data instantly through customizable dashboards and reports. 

This real-time visibility enables you to identify trends, spot potential issues before they become problems and capitalize on opportunities as they emerge. Your financial team can monitor cash flow in real-time while your sales managers track pipeline progress and conversion rates throughout the day. 

5. Industry-specific functionality addresses unique business needs 

Companies choose NetSuite because it offers industry-specific versions that address unique business requirements. SuiteSuccess editions provide pre-configured solutions for manufacturing, retail, wholesale distribution, professional services and other industries. 

These industry-specific packages include specialized workflows, reports and features that align with your sector’s best practices. Instead of spending months customizing a generic system, you implement a solution designed specifically for your industry’s requirements. 

6. Automation reduces manual work and human error 

NetSuite automates routine tasks that consume significant time and resources in many organizations. Create automated workflows that require minimum manual intervention to execute processes such as:  

• Accounts payable processing 
• Inventory management 
• Order fulfillment 
• Financial reporting 

This automation reduces human error while freeing your team to focus on strategic activities that drive business growth. Your accounting team spends less time on data entry and more time on financial analysis. Your operations team focuses on process improvement rather than manual order processing. 

7. Global capabilities support international operations 

Companies with international operations choose NetSuite for its comprehensive global capabilities. The platform supports multiple currencies, languages and accounting standards while maintaining compliance with local regulations across different countries. 

Multi-subsidiary management becomes straightforward with consolidated reporting that provides both local and global views of your business performance. You can manage operations in multiple countries while maintaining centralized control and visibility. 

8. Strong security and compliance features protect your business 

NetSuite provides enterprise-grade security features that protect your sensitive business data. Role-based access controls ensure employees only access information relevant to their responsibilities. Comprehensive audit trails track all system activities for compliance and security monitoring. 

Built-in compliance tools help you meet industry regulations and standards while automated backups and disaster recovery capabilities protect against data loss. 

Partner with BPM for your NetSuite implementation 

Choosing NetSuite is a significant step toward transforming your business operations, but successful implementation requires the right partner. BPM brings extensive experience in NetSuite implementations across various industries, ensuring your transition is smooth and your system is configured to maximize your investment. 

Our team works closely with you to understand your unique business requirements and implement NetSuite in a way that supports your specific goals and processes. We provide ongoing support to help you leverage NetSuite’s full capabilities as your business continues to grow and evolve. To discuss how we can help you implement a solution that drives growth and efficiency, contact us.  

Commercial real estate owners and operators face a critical decision when their current audit relationship no longer meets their needs. Whether you’re dealing with communication issues, rising fees, or simply outgrowing your current provider’s capabilities, switching audit firms requires careful planning and strategic thinking. 

The decision to change audit providers should not be taken lightly. Your auditor plays a crucial role in maintaining investor confidence, ensuring regulatory compliance, and providing valuable insights into your business operations. A smooth transition protects your reputation while positioning your organization for improved financial reporting and strategic guidance.  

This article will walk you through the key considerations for selecting a new audit provider and managing the transition process effectively.  

Recognizing when it’s time to find a new audit provider 

Several warning signs indicate you might need a new audit provider. Here are just a few of the most notable signs that you should pay attention to: 

• Poor communication ranks among the most common issues. When your current firm takes days to respond to emails, provides unclear explanations, or fails to keep you informed about progress, it creates unnecessary stress and uncertainty. 
• Cost concerns also drive many organizations to explore alternatives. If your audit fees have increased significantly without corresponding improvements in service quality, you have legitimate reasons to shop around. Additionally, if your business has grown or diversified beyond your current auditor’s comfort zone, you might benefit from a firm with deeper commercial real estate knowledge. 
• Technical competency issues present another red flag. Modern commercial real estate operations are characterized by intricate transactions, multi-entity structures, and constantly evolving accounting standards. Each real estate business must also adhere to specific financial statement formats and basis guidelines. If your auditor frequently requests clarification on routine transactions or struggles to grasp your business model, or if sophisticated investors begin to question the reliability of your reporting, it may signal a gap in the specialized expertise your organization demands. 

Key factors to evaluate in potential audit providers 

When evaluating new audit providers, industry knowledge should top your list of priorities. Commercial real estate accounting involves unique challenges, including financial statement format and disclosures, revenue recognition for leases, property valuations, and complex partnership structures. Look for firms that regularly serve clients in your sector and understand the nuances of your business model. 

• Team stability matters significantly in building effective working relationships. High turnover at audit firms can disrupt continuity and force you to repeatedly explain your operations to new team members. Ask potential providers about their staff retention rates and the likelihood that your assigned team will remain consistent year over year. 
• Technology capabilities have become increasingly important in modern auditing. Firms that leverage advanced data analytics, cloud-based collaboration tools, and automated testing procedures can often deliver more efficient and insightful audits. These technological advantages typically translate into better service and potentially lower costs. 
• Communication style and responsiveness directly impact your experience throughout the audit process. During your evaluation meetings, pay attention to how quickly potential providers respond to your questions and whether they explain complex concepts in terms you can understand. 
• Establishing clear expectations from the beginning helps build a productive long-term relationship with your new audit provider. Discuss your communication preferences, reporting deadlines, and specific areas where you need additional support or insights. Document those aspects that are allowable under AICPA and other regulatory standards in your engagement letter or other governance communications. 

Managing the transition process 

Once you’ve selected your new audit provider, proper transition planning becomes essential. Start by gathering all relevant documentation from your previous auditor, including prior year workpapers, management letters, and correspondence files. Your new firm will need this information to understand your historical accounting positions and identify potential areas of focus. 

• Timing your switch strategically can minimize disruption to your operations. Many organizations prefer to make changes at the beginning of their fiscal year, allowing the new auditor to establish baseline procedures and expectations from the start. However, mid-year changes are possible with proper planning and communication. 
• Communication with stakeholders requires careful attention during transitions. Inform your board of directors, investors, and lenders about the change in advance. Provide clear explanations for your decision and introduce them to key members of your new audit team. This proactive approach helps maintain confidence and prevents unnecessary concerns. 
• Budget for additional time and resources during your first audit cycle with the new provider. They’ll need extra time to understand your systems, processes, and accounting policies. While this initial investment may result in higher first-year fees, it typically pays dividends through improved efficiency in subsequent years. 
• Regular feedback sessions throughout the audit process allow you to address concerns before they become major issues. Schedule check-in meetings at key milestones to discuss progress, challenges, and areas for improvement. This ongoing dialogue helps both parties adjust their approach and maintain alignment. 

Working with BPM for your commercial real estate audit needs 

BPM brings deep commercial real estate knowledge and a client-focused approach to audit services. Our team understands the unique challenges facing property owners, developers, and real estate investment firms, and we tailor our audit procedures to address your specific risks and opportunities. 

We combine technical proficiency with responsive communication, ensuring you receive timely updates and clear explanations throughout the audit process. To schedule a consultation and learn more about our approach to building lasting client relationships, contact us.  

The transatlantic regulatory landscape for digital assets is experiencing a pivotal moment. Following high-level discussions between UK Chancellor Rachel Reeves and US Treasury Secretary Scott Bessent this week, Britain and the United States are positioning themselves for unprecedented cooperation in cryptocurrency and digital asset regulation. It’s a strategic shift that could fundamentally alter how your business approaches this evolving market. 

This comes as the Trump administration has enthusiastically embraced digital assets, creating a stark contrast with the UK’s historically cautious regulatory approach. The timing isn’t coincidental: crypto industry groups wrote to the UK government last Thursday, ahead of Trump’s state visit, urging Britain to include digital assets and blockchain in any new transatlantic deal. 

The competitive pressure driving regulatory change 

The urgency behind this collaboration reflects deeper market dynamics that directly impact your business strategy. British officials acknowledge that closer regulatory alignment aims to increase UK companies’ access to the world’s deepest and most liquid financial markets while attracting greater American investment into Britain. 

The message is clear: regulatory misalignment creates competitive disadvantages that translate into real economic consequences. 

The stablecoin opportunity 

The proposed agreement specifically targets stablecoins—cryptocurrency tokens pegged to traditional currencies—as a primary focus area. This isn’t merely about regulatory compliance; it’s about positioning both nations to capture a rapidly growing market segment that serves as the foundation for much of the digital asset ecosystem. 

For your business, this stablecoin alignment could mean: 

• Enhanced cross-border payment efficiency with reduced compliance complexity 

• Greater certainty around reserve requirements and operational standards 

• Expanded market access for businesses operating in both jurisdictions 

Regulatory sandboxes: Testing innovation under supervision 

Perhaps the most immediately actionable development involves digital securities sandboxes—controlled environments where your business can test blockchain applications in financial services. This concept would create joint UK-US testing frameworks allowing companies to serve both markets simultaneously. 

What sandbox participation could mean for your business 

The proposed digital securities sandboxes represent more than regulatory accommodation; they’re innovation accelerators. Companies participating in these programs could: 

Test tokenized securities offerings under supervised conditions, potentially revolutionizing how you approach capital raising and investor engagement 

Explore blockchain-based financial services without full regulatory compliance burdens during the development phase 

Gain regulatory insights from both jurisdictions simultaneously, reducing time-to-market for compliant solutions 

Access broader markets by demonstrating compliance across both regulatory frameworks 

Strategic implications across sectors 

This regulatory alignment creates distinct opportunities that vary by industry and business model: 

Financial services institutions can leverage standardized stablecoin frameworks to enhance international payment solutions and explore new digital asset custody services with greater regulatory clarity. 

Technology companies developing blockchain solutions gain clearer pathways for financial services integration, whether through smart contracts, tokenization platforms, or decentralized applications. 

Traditional businesses across sectors can more confidently evaluate digital asset integration, from supply chain transparency initiatives to blockchain-based customer loyalty programs. 

Preparing your business for regulatory convergence 

While this regulatory alignment creates new opportunities, it also demands strategic preparation. Your business should evaluate how these changes might impact current operations and future growth plans. 

Assessment priorities should include: 

• Processes that could benefit from stablecoin integration 

• Opportunities for blockchain application in your sector 

• Potential participation in regulatory sandbox programs 

• International expansion strategies that leverage aligned regulations 

Strategic considerations involve: 

• Competitive positioning as regulatory frameworks converge 

• Capital allocation toward digital asset initiatives 

• Partnership opportunities with businesses in aligned jurisdictions 

• Risk management in an evolving regulatory environment 

Strategic positioning in a shifting landscape 

The UK-US digital asset collaboration represents more than regulatory housekeeping—it’s a strategic response to global competitive pressures. As these frameworks converge, businesses that understand and adapt to the changing landscape will be better positioned to capitalize on emerging opportunities. 

BPM’s blockchain and digital assets practice is uniquely positioned to help you navigate this transatlantic regulatory convergence. With deep experience across both US and UK markets, our team provides comprehensive guidance through the complex intersection of digital asset innovation and regulatory compliance. 

How BPM supports your digital asset strategy 

Our blockchain and digital assets practice offers specialized services designed to address the specific challenges and opportunities created by this regulatory alignment: 

Regulatory compliance and strategy – Navigate evolving stablecoin regulations, digital securities frameworks, and cross-border compliance requirements as UK-US standards converge. 

Digital asset accounting and tax advisory – Address the complex accounting treatment and tax implications of cryptocurrency transactions, stablecoin holdings, and tokenized assets across jurisdictions such as through financial audits, stablecoin attestations, global tax structuring, and R&D tax credits and incentives. 

Blockchain implementation consulting – Evaluate and implement blockchain solutions that comply with emerging regulatory sandboxes and joint framework requirements such as through SOC and IT audits or cybersecurity and penetration testing. 

Digital transformation advisory – Assess how digital asset integration aligns with your broader business strategy and operational objectives. 

Risk management and internal controls – Develop robust frameworks for digital asset custody, transaction monitoring, and regulatory reporting across multiple jurisdictions for wallets, settlements, treasury, or proof-of-reserves and agreed-upon procedures for exchanges, custodians and stablecoin issuers. 

As the UK builds crypto-specific capabilities to match market trajectory and opportunities, BPM’s established presence in both US and UK markets positions us to guide your organization through this regulatory evolution. Our teams understand the nuances of operating across both jurisdictions and can help you capitalize on the enhanced market access and streamlined compliance processes this collaboration will create. 

Ready to evaluate how these regulatory developments align with your business strategy? Contact BPM’s blockchain and digital assets team today to discuss how these transatlantic opportunities fit within your broader growth objectives and develop a comprehensive approach that positions your organization for success in this rapidly evolving marketplace. 

The nonprofit sector experienced a seismic shift in compliance requirements when the Office of Management and Budget (OMB) raised the single audit threshold from $750,000 to $1 million in April 2024. This changetakes effect for fiscal years beginning on or after October 1, 2024 and based on when the federal award was granted.  

This adjustment impacts thousands of nonprofits across the United States, fundamentally changing who must undergo the rigorous single audit process and when they must do so. This also impacts organizations documentation regarding when they receive a federal award in needing to understand both rules and guidance.  

The new $1 million threshold and its implications 

The $1 million single audit threshold is effective for federal awards that were issued after October 1, 2024, meaning the new threshold is effective for fiscal years that end on or after September 30, 2025. This is a 33% increase from the previous $750,000 threshold that had been in place since 1997. 

The threshold applies to all non-federal government agencies and nonprofit organizations that expend $1 million or more in federal dollars in a given fiscal year. Federal expenditures include direct federal grants, pass-through funds from state or local governments, cooperative agreements, cost reimbursement contracts, and other forms of federal financial assistance. 

The timing of this change creates a mixed environment where organizations may operate under different thresholds simultaneously, depending on when individual grant agreements were executed. Non-federal entities will need to determine the relevant Uniform Guidance criteria based on the award date, as most will have awards under both existing and revised Uniform Guidance. 

Organizations that previously required single audits but now fall below the new threshold will experience immediate relief from this comprehensive audit requirement. However, maintaining strong financial management practices remains essential, as other audit requirements from grantors or state regulations may still apply. 

State-specific requirements remain unchanged 

While federal requirements have relaxed, state audit thresholds remain independent and often more stringent than federal standards. California requires annual audits for nonprofits registered with the state that have gross income of $2 million or more, while New York State increased its threshold from $750,000 to more than $1 million of gross annual revenue and support as of July 1, 2021. 

Many states have laws requiring charitable nonprofits to conduct independent audits under certain circumstances, with requirements most often triggered by total revenue received or total contributions. These state requirements operate independently of federal single audit thresholds, creating a complex compliance matrix for organizations operating across multiple jurisdictions. 

Projections for 2026 and beyond 

Looking ahead to 2026 and beyond, several trends will likely shape the single audit environment for nonprofits. The increased threshold represents part of broader federal efforts to reduce administrative burden while maintaining accountability standards. 

Actionable compliance strategies 

Organizations approaching the new threshold should implement proactive monitoring systems to track federal expenditures throughout their fiscal year and most importantly be able to track if the funding is before October 1, 2024 or after October 1, 2024. Knowing the timing the award was provided is imperative in knowing the federal compliance and provisions that need to be implemented and followed. Organizations may find themselves needing to document and follow two different standards under old and new federal awards. Create monthly reports that aggregate all federal funding sources, including direct grants, pass-through awards, and in-kind contributions, to avoid threshold surprises. 

Establish relationships with qualified auditors before you need them. Understanding whether your organization will require a Single Audit under the new threshold is crucial for proper planning and compliance. Even organizations below the threshold should maintain audit-ready financial practices, as growth or new funding opportunities can quickly change compliance requirements. 

Document your federal award tracking methodology and ensure consistency across all programs. The single audit focuses heavily on compliance with specific federal requirements, making comprehensive documentation essential for organizations that may cross the threshold unexpectedly. 

Consider engaging experienced nonprofit auditors early in your fiscal year for preliminary assessments. This proactive approach helps identify potential compliance gaps before they become audit findings and helps to ensure smooth transitions if single audit requirements apply. 

Review and update your procurement policies to align with federal requirements, regardless of current audit obligations. Uniform Grant Guidance requires nonprofits receiving federal grants to adopt and consistently follow a procurement policy and having these systems in place before they’re required demonstrates strong financial management. 

Prepare your nonprofit for an uncertain regulatory future 

The regulatory environment for nonprofit organizations continues evolving, with changes in federal priorities, state budget pressures, and donor expectations all influencing compliance requirements. Organizations that build flexible, robust financial management systems today will be better positioned for whatever changes emerge tomorrow. 

The threshold for capital expenditures has been increased from $5,000 to $10,000, allowing for greater flexibility in managing capital assets, and changes have been made to procurement standards to streamline the procurement process. These accompanying changes demonstrate the federal government’s commitment to reducing administrative burden while maintaining accountability. 

Stay connected with professional networks and industry associations that monitor regulatory changes. The rapid pace of updates to federal guidance requires ongoing attention to help ensure compliance strategies remain current and effective. 

Ready to strengthen your nonprofit’s financial management and audit readiness? Understanding single audit requirements is just the beginning of effective nonprofit financial management. Whether you’re approaching the threshold or seeking to optimize your compliance framework, BPM’s nonprofit services provide the support you need to navigate these complex requirements successfully.