In today’s global business landscape, accounting firms are increasingly faced with the often-daunting prospect of managing clients who operate in a foreign country, or from many different nations around the world.
Although working with clients at this scale can be highly profitable, this isn’t always an easy task for the accountants themselves. Indeed, international regulations, language barriers, and cultural differences can make it a daunting task. However, with the right strategies in place, accounting firms can effectively navigate these challenges and build successful long-term relationships with their multinational clients.
In this article, we’ll delve a few of the main challenges of accounting for multinational companies, methods of overcoming these issues, and how INAA can help you deal with multinational clients down the line. Read on to learn more.
Challenges of Multinational Accounting
So, what are some of the most common issues faced by accounting professionals dealing with multinational clients?
Compliance
The first, and most obvious, hurdle to mention is having to deal with a myriad of varying (not to mention often-contradictory) rules and regulations across borders. The reports that accountants and auditors are required to deliver, as well as rates of taxation, can fluctuate wildly depending on where a business operates from. Furthermore, these regulations change constantly; meaning that accounts have to stay as up-to-date as possible to ensure full compliance.
Language Barriers
Second, is the issue of communication. Obviously, when dealing with international clients (especially those who operate across multiple nations or continents) stakeholders can be speaking multiple languages, and the nuances of what is required from a client may be lost. Differences in communication, or other written/verbal gaffes, can create more burdens or lead to easily-preventable mistakes being made.
Time Differences
Next is the issue of time differences. When working with clients from all around the world, who all might operate according to different time zones, it can be hard for accountants to communicate easily with their clients, and add extra stress to their deadlines. It also means vital feedback and status reports are more difficult to coordinate, which can add to the tension on both sides.
Data consolidation
Another issue in bookkeeping and reporting is simply keeping track of data across multiple different sources and consolidating important information in one easy-to-reach location; ensuring that all relevant stakeholders can access it and that the data in question remains secure.
Exchange Rates
Exchange rates are another financial issue which can vary wildly across regions, which accountants also need to be aware of when bookkeeping. It can often be difficult to monitor the differences in the value of currencies, especially when dealing with large volumes of transactions in goods or services.
How to Manage Multinational Clients
So, what does it take to manage multinational clients?
Firstly, prioritizing clear and effective comms, and employing multilingual accountants within your organisation, is one way of avoiding misunderstandings and miscommunication. Next, be mindful of the schedules of your clients, and make sure to arrange regular catch-ups and status updates with them as regularly as you can manage.
Thirdly, cloud-based SaaS solutions can provide accountants with centralized tracking, monitoring, and analysis of relevant accounting data, to ensure that all stakeholders are in alignment over the relevant financial data.
Finally, when it comes to the issue of staying up-to-date with issues of compliance and exchange rates, this is where services like INAA can provide accountants with advice and support.
Learn More with INAA
INAA’s mission is to educate accounting industry professionals through knowledge sharing, and professional development.
With over 140 members across 50 countries, INAA enables accountants to connect with accounting experts from all around the world — which can be instrumental when dealing with multinational clients.
So, if you’d like to learn more about accounting on a global scale, then visit our website and sign up right here.