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Saturday, February 1, 2014

Learn Overseas Accounting Methods

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 short

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 da!

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
Below listing  some of the subjects that need to be considered when doing multi national business:
    Inventory pricing - currency exchange.
    Bad debt provision - here or there.
    Capitalization  & depreciation -  basis of;
    Currency fluctuation - tax liability.
    Variable tax periods - fiscal determination.
    Account pooling - permitted?
    Receivables - 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 counselor
hank.samuel2@gmail.com

Visit us at: www.scoresouthflorida.net



   
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1 comment:

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