Global marketing demands you know the differences in accounting methods & reporting systems over there from here. Overall financial performance dictates local taxes. That can be outsourced to local accountancy firms. The PRACTICE of how those numbers are defined are especially delicate in markets like the Russian federation and China.
Language & culture skew incomprehensible accounting methods Only a
multinational accounting firm based in the U.S. would be qualified to untangle
the information. If all revenue is derived in the U.S. through repatriated
currency - no problem. However, if your money is generated through direct
foreign intervention, you better hire an expert if you don't want to end up
IGNORANCE IS NO DEFENSE
For example, if auditing methods over
there are not absolutely adhered to, you can find yourself out of business,
which is not unheard of. The exporter must know for example: a) how many
copies of records need to be submitted here and/or abroad;
b) all kinds of
special forms, bookkeeping chores, dates for submission, which agency, ya da; ya
Failure to know penalties can be misinterpreted. Care in not
divulging corporate info secrets into the wrong hands thru required financial
disclosure has to be cautiously managed.
TAXES, TAXES EVERYWHERE
listing some of the subjects that need to be considered when doing multi
Inventory pricing - currency exchange.
provision - here or there.
Capitalization & depreciation - basis
Currency fluctuation - tax liability.
Variable tax periods -
Account pooling - permitted?
what is definition of - yes, believe it or not!
Internal audit controls -
who- where- when?
INSIGHT: Local business climate is an
excellent indicator to the the extent of overseas government oversight in the
area of taxation When times are tough economically the
authorities over there are much more likely to pay closer
attention to the veracity of accounting reports. Political instability on the
otter hand loosens stringency.
FOR ONE-ON-ONE PRO BONO PERSONAL HELP IN
GOING STARTING EXPORT MARKETING CONTACT:
Hank Samuel; Certified SCORE
Visit us at: www.scoresouthflorida.net