BASIC thinking from February 25, 2020: All beginnings are difficult. Especially if you venture into the international arena as a founder and entrepreneur. But the opportunities should be greater than the fears. Because with the right solutions for international transactions, success in other countries is also possible.
Your business idea enjoys growing popularity in Germany, your product inspires your customers and the generated turnover lets you and your company look positively into the future. And now you want to expand, but the international market scares you a little?
You are probably asking yourself the following questions: What laws do I need to have on the screen? What tax rates do I have to pay attention to? And how do I adapt my processes to these international challenges?
Many start-ups and founders throw themselves into the fray – and unfortunately without a predefined strategy. After all, if you want to juggle exotic foreign currencies and international tax rates, you should align your cash management with these new requirements and strategically internationalize your cash management.
When the month end
no longer true
Whether it’s the dollar, the krona, or the lira, those who dismiss the handling of foreign currencies as a minor trifle don’t quite grasp the accounting challenges involved. Only the right currency and tax management ensures correct amounts at the end of the month and clean closing reporting.
Essential for international success are, on the one hand, current exchange rates, which must be used on a daily basis. In addition to the accurate valuation of inventories at the end of the month, it is also necessary to post any currency differences that arise. If these factors are not taken into account, the annual financial statements are riddled with errors, and the international market presence quickly leads to a dead end.
Equally crucial to international success is whether your company offers digital or haptic products. In the case of the former, sales tax is due immediately because the product is available just in time. But for haptic goods or services that are delivered a few days after the order, there are more questions to be answered: What is the tax recipient? And which country receives the taxes if the product was ordered in one country but manufactured in another?
Companies should by no means rely on their gut feeling here, but instead rely on the recommendations of experts.
What you need for the
international market need
For many founders, the international arena cannot be fully surveyed – also due to the (still) lack of manpower. Start-ups with online stores in particular should therefore outsource their financial management in order to cope with the complex requirements of international financial transactions.
The provider nexnet offers an integrated solution for this, which registers all international money movements in all currencies on a daily basis and monitors invoicing and the handling of international tax advances.
With its Payment Clearing solution, the Berlin-based company offers a certified tool for the secure and efficient control of international financial transactions. The solution is not industry-specific and is therefore suitable for all companies.
So while your company can concentrate on its day-to-day business, nexnet ensures the error-free handling of your financial flows for you.
Accounts Receivable Management
In addition, nexnet records all money movements for your company. All currencies are taken into account according to the current exchange rate. Sales and sales tax are recorded and international tax rates are applied. For international companies, nexnet takes over the accounting according to local GAAP.
With its Subscription Billing Platform, nexnet offers an efficient BPO solution for managing recurring payments and subscriptions – even internationally. Whether SOX compliance or the handling of different tax rates and foreign currencies: All features are already included as standard for an international presence.
International customers can use over 35 payment service providers – one more reason why your customers stay with you during the checkout process and complete their purchase.
With its comprehensive solutions, nexnet offers you the best conditions for a successful international start. Start-ups and medium-sized companies in particular benefit from a holistic solution to quickly address customers outside their own country and inspire them with convenient service. And your own accounting department will also thank you for successfully mastering the international requirements.