All beginnings are difficult. Especially when you venture onto the international stage as a founder and entrepreneur. But the opportunities should be greater than the fears. Because with the right solutions for international transactions, you can also succeed in other countries.
Your business idea is enjoying growing popularity in your home country of Germany, your product is inspiring your customers and the turnover generated gives you and your company a positive outlook for the future. And now you want to expand, but are a little daunted by the international market?
You are probably asking yourself the following questions: Which laws do I need to be aware of? Which tax rates do I need to be aware of? And how do I adapt my processes to these international challenges?
Many start-ups and founders are throwing themselves into the fray - unfortunately without a pre-defined strategy. Because 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 closing
no longer true
Whether dollars, crowns or lira: anyone who dismisses the handling of foreign currencies as a minor trifle does not fully understand the accounting challenges. Only the right currency and tax management can ensure correct amounts at the end of the month and clean final reporting.
Current exchange rates, which must be used on a daily basis, are essential for international success. In addition to the precise 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 will be riddled with errors and the international market presence will quickly lead to a dead end.
Another decisive factor for international success is the question of whether your company offers digital or haptic products. With the former, VAT is due immediately as the product is available just in time. However, for haptic goods or services that are delivered a few days after the order is placed, further questions need to be clarified: What is the tax recipient? And which country receives the tax if the product was ordered in one country but manufactured in another?
Companies should not rely on their gut feeling here, but instead rely on the recommendations of experts.
What you need for the
international market
For many founders, the international arena is not fully comprehensible - 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 that registers all international money movements in all currencies on a daily basis and monitors invoicing and the handling of international tax advances.
Payment Clearing
With the 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.
Accounts receivable management
In addition, nexnet records all money movements for your company. All currencies are taken into account according to the daily exchange rate. Turnover and VAT are recorded and international tax rates are applied. For international companies, nexnet handles accounting in accordance with local GAAP.
Subscription Billing
nexnet offers efficient subscription billing for the management of recurring payments and subscriptions - even internationally. Whether SOX compliance or the handling of different tax rates and foreign currencies: All features for an international presence are already included as standard.
International customers can use different payment service providers - one more reason why your customers stay with you during the order process and complete their purchase.
Conclusion
With its comprehensive solutions, nexnet offers you the best conditions for a successful international launch. Start-ups and medium-sized companies in particular benefit from a comprehensive solution to quickly reach customers outside their own country and impress them with a convenient service. And your own accounting department will also thank you for successfully mastering the international requirements.
Article from: BASIC thinking from February 25, 2020
