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Ambitious mid-sized organizations will always be looking for opportunities to grow. Growing beyond borders is a bold move, but it requires businesses to consider different tax structures and regulations, and also to build a sustainable operation where control is more remote so that it addresses language and cultural concerns. In addition, it must also take into account the mounting geopolitical issues. With so many different factors to consider, here is how to win big on the global scale:
Managing finance functions
Finance functions become much complex when a business expands to multiple regions. While some businesses address these issues by hiring informed people, tech-savvy finance departments leverage fintech solutions to meet and adapt to the dynamic world of global payment processing.
For example, certain software can be used to establish approval workflows, collect payment details, and seamlessly manage the execution of payments. This alleviates the risks and errors that come from the manual handling of these processes. As those in the supply chain business, understand that it is not always safe, possible, cost-effective, or efficient to be paid with a wire transfer. At the same time, organizations are looking for more secure and cost-effective ways to make a payment beyond paper checks.
Keeping compliant in any country
Managing business compliantly can be a challenge even in one’s own country. However, once you start going global, many more new requirements surface. Some of the questions that arise include: how do you know if business partners are legitimate entities? What are the tax implications while working with them? Are you verifying them using government blacklists or getting proper identification information? What internal and external fraud controls do you have in place as you add markets?
For the finance department, moving money outside the organization in the form of payments can lead to inadvertent law breaking and fraud and subject the business to government fines. It can even lead to suspended operations.
Maintaining central control
The finance organizations must keep visibility on the health and activities of the business across each entity, regardless of the country of operation. They must enact processes that ensure compliance and financial controls at the corporate and entity level. Furthermore, finance not only needs to work to streamline operations, but also address independent workflows for each office and business unit.
Centralizing finance functions usually involves using technology to establish flexible and controlled workflows for each entity from a central point of action. This allows corporate headquarters to witness intensely controlled and configurable permission options, ensuring the business' stronghold for compliant, efficient, and sustainable international growth.
Check Out: CIOReview | Medium