Managing global compliance obligations can be extremely tricky, with rules differing between countries. Whether you expand to one jurisdiction or one hundred, there will always be issues to overcome. Middle market businesses with an international footprint face huge challenges to manage their accounting and regulatory reporting obligations around the world. In typical cases, the road is especially rocky during periods of expansion into new markets.
Here are the typical challenges that global companies face in managing their international compliance and reporting obligations:
The biggest issues and how to mitigate them
From a client perspective, most have little or no control and visibility over their international compliance accounting position. Direct tax returns, internal deadlines, book-keeping, a lack of standardisation and a lack of quality are all critical issues if you engage in a third party to work for you.
Digging deeper, tax is the most problematic issue for firms. With changes in legislation, filing and tax deadlines as the main culprits, many companies struggle to keep on top of this, across all the countries they operate in.
Respect your reputation
While many firms make mistakes such as failing to make a tax filing, making it late or inaccurately, there are many business owners that don’t understand the ongoing effects. Not only does this damage your reputation in the market-place, it can also have a wider-reaching negative effect on other fiscal authorities you associate with which spreads to other countries that you operate in. When this happens, external stakeholders may get involved and this can be a very difficult situation to resolve.
The three main pressures facing businesses expanding abroad:
|lack of control and visibility over the international compliance position|
|no single point of contact to address the global compliance position|
|lack of standardisation over international compliance businesses
Get your arms around the current state of your compliance programme – what have you done, where is it, any issues, financial penalties and who is working for you and how is it looking.
Often, people have a patchwork of advisers around the globe all producing compliance work to a greater or lesser standard. Managing global compliance obligations can therefore be an exhausting task, but the premise is simple. Get a proper, in-depth and honest view of your current state - what’s been filed and where do the risks reside, how much are you paying - this is the only way in which you will be able to highlight the areas that need attention from an adviser. You should then quickly find a single global firm or adviser that you can trust to deliver the control, visibility and standardisation that you need.
Many businesses only seek help when something goes wrong, but by taking a proactive approach to managing your global compliance you can ensure that your business is protected and built for future growth.
Expert advice – your essential steps to global compliance
|standardise compliance processes globally as far as possible|
|move to a single reliable external provider in the market
|have one single, accountable point of contact for managing global compliance from that provider|
|drive to a central tracking workflow platform to secure control and visibility over filing positions|
|understand your current state compliance exposures|
raise your local understanding of changes in local legislation as they occur