When a company grows internationally, it needs to develop a solution for international accounting. This should be an effective solution based on a combination of one or more business platforms, along with in-house and external staff who carry out the work.
The best solution is often an international accounting partner along with an international business platform. However, normally companies have chosen one of the following options as their solution:
- Local bookkeeping and accounting firms that provide a full service along with a business platform
- Investing in local business platform that support the local requirements of different countries, along with various local bookkeeping and accounting services
- Investing in local business platform that support the local requirements of different countries and employing local, in-house staff who work full or part time on local bookkeeping and accounting.
These different methods of solving the financial administration of international companies generate different kinds of challenges, including:
- poor data quality
- slow process for preparing financial statement
- currency conversions
- internal transactions within the Group
- language barriers
- inefficient processes
Optimal solution involves setting up systems and creating processes in a unified and standardised way.
In order to effectively manage business operations in a global environment, many different areas need to be standardised. The following are critical areas that have to be standardised:
- company structure
- global a chart of accounts
- tax accounting
- payment methods
Successful solution requires a system that manages both standardisation and unique local requirements at the same time. After that the following areas are taken under consideration:
- financial reports
- tax accounting.
Using local expertise
The solution described above can be created using modern, international cloud-based business platform combined with a global accounting partner.
However, it may also need to be supplemented with other local expertise. Local help is often required for the following:
- establishing companies
- closing down companies
- employment agreements
- tax planning.
Solution for international accounting
Staria offers both systems and services as an international accounting partner. It has extensive experience of how to handle bookkeeping and accounting for different countries and ensures that it does this in an efficient and unified way for the entire Group. Would you like to discuss the best solution for you in the short and long term? Book in for free advice with us; click here for more information.
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We have prepared a guide covering various scenarios describing how companies generally avoid problems with international financial administration, as well as the pros and cons of the various solutions. Read more.
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