BASIC thinking, 25. February 2020: Getting started is never easy, particularly for start-ups and entrepreneurs daring to step out onto the international stage. But your opportunities should be bigger than your fears. For with the right solutions for international transactions, success in other countries can also be achieved.
Your business idea is attracting growing popularity at home in Germany, your product is filling your customers with enthusiasm, and with the sales being generated, the future for you and your company looks rosy. Now you’d like to expand, but the international market looks a little daunting.
You’ve probably been asking yourself the following questions: What laws do I have to be aware of? Which tax rates do I have to comply with? And how do I adapt my processes to these international challenges?
Many start-ups and entrepreneurs enter the fray – but often do so without a predetermined strategy. If you want to juggle with exotic foreign currencies and international tax rates, however, you should align your cash management towards meeting these new challenges – in other words, your cash management needs to be strategically internationalized.
Whether dollar, krone, or lira: If you dismiss dealing with foreign currencies as a trivial matter, you will not have good overview of the accounting challenge facing you. Only a suitable currency- and tax-management system will ensure a correct recording of amounts and a clean financial reporting at the end of the month.
Also essential for international success are up-to-date exchange rates that can be called on daily. Alongside the precise evaluation of stocks at the end of the month, the recording of any arising currency differences is also essential. If these factors are not considered, your annual financial statement will be riddled with errors and your entry into the international market will quickly lead to a dead end.
Just as decisive for international success is the question of whether your company offers digital or physical products. In the case of the former, VAT is payable immediately as the product is available immediately. Yet in the case of physical goods or services that are delivered a number of days after the order, further questions are to be clarified: Who is the tax recipient? And which country receives the taxes when the product was ordered in one particular country, but has been delivered to another?
Companies should on no account leave this up to their gut feeling: this is a matter for experts.
For many entrepreneurs – also due to the (current) lack of manpower – the international stage is not entirely comprehensible. For this reason, start-ups with online shops in particular should outsource their financial management, in order to get to grips with the complex challenges that come with international financial transactions.
For this purpose, the service provider nexnet offers an integrated solution that registers all international money flows on a daily basis and monitors the billing as well the handling of international tax rates.
With its Payment Clearing solution, the Berlin-based company offers a certified tool that allows international financial transactions to be controlled securely and efficiently. The solution is not tied to a specific sector and is thus suitable for all companies.
While the company can get back to concentrating on its day-to-day business, nexnet ensures an error-free handling of your financial streams for you.
In addition, nexnet records all money flows for your company. This includes all currencies according to exchange rates that are updated on a daily basis. Sales and VAT are recorded as part of the process and international tax rates are applied. For international companies, nexnet will also take over the accounting according to local GAAP.
With its Subscription Billing platform, nexnet provides an efficient BPO solution for the management of recurring payments and subscriptions – also on an international basis. Whether it’s SOX-compliance or the handling of diverse tax rates and foreign currencies, all of the features needed for conducting international are included in the standard package.
As part of this, international customers can use over 35 payment service providers – one more reason why your customers will stay with you during the ordering process and complete their purchase.8
With its comprehensive solutions, nexnet offers you the best prerequisites for a successful international launch. Start ups and small and medium enterprises in particular will profit from an integrated solution that will help them appeal to customers from abroad and get them excited about their convenient service. And your own accounts department will also thank you for allowing them to successfully master the complicated international requirements.