Recent studies suggest that European companies are embracing remote work and international mobility, with a 45% increase in cross-border transfers observed.
However, corporate relocation is a complicated process that involves examining the risks and rewards of upping sticks and moving an organisation’s assets, operations, and personnel to another location—be that in the same country or internationally.
Consulting with the right experts before making any decisions is obviously crucial.
There are obstacles beyond logistics, such as ensuring that your fiscal health is in top shape and that you’re ready to comply with any changes in regulatory standards.
This article examines the role of accountant advice in corporate relocation strategies, offering tips to entrepreneurs on how to mitigate risks and optimise financial outcomes to ensure their move’s success. Read on to learn more.
Assessing the Benefits and Risks of Corporate Relocation
Accountants are indispensable when conducting SWOT analysis exercises and weighing the pros and cons of corporate relocation. Their budgeting and financial forecasting expertise will also help you accurately determine not only the direct costs of moving offices, upgrading technologies, changing suppliers, etc., but also the indirect costs of making a big move, such as operational downtime, loss of employee productivity, unforeseen technical issues, and more.
From there, they can offer you a suitable budget that will help you cover all eventualities. Then, once you are established in your new location, accountant advice will help you project future revenue and expenses based on data analysis in areas such as rent, utilities, transport and local economic conditions.
Accountant Advice in Meeting New Tax Obligations
The costs associated with corporate relocation can rapidly spiral out of control. For instance, if you’re looking to maintain operations in your existing region, your business may be subject to exit taxes, or some multi-jurisdiction tax planning may be required.
Accountant advice will also help entrepreneurs understand which expenses are deductible or nondeductible in a corporate relocation and any tax incentives they may be eligible for.
For example, the cost of moving equipment to a new location or storing it for a short period may be tax deductible. Alternatively, some jurisdictions offer tax credits to incentivise business investment.
Additionally, specialist accountants can alter or establish financial compliance and reporting processes in line with your new jurisdiction’s regulations. Failure to develop your new financial compliance frameworks correctly may incur regulatory fines and damage your organisation’s reputation –– severely impeding your corporate relocation plans.
Optimising Financial Outcomes in your New Location
Expert accountant advice will help you enhance your corporate relocation strategy by creating financial reports to improve investor relations. They may also offer training or support to internal finance teams to help them adjust processes.
Moreover, they can continuously track corporate relocation expenses to ensure organisations stay within budget. This monitoring process may involve operational cost analysis, providing tips on where a company could potentially save money. Or, they can reassess an organisation’s capital structure to ensure it is optimised for its new business environment.
INAA: Our Members are with you on your Business Journey
Corporate relocation can be a complex and resource-intensive process, but the rewards of getting it right can propel your business to new heights.
Here at INAA, we offer entrepreneurs unprecedented access to a global network of accounting professionals who have helped numerous organisations establish new locations and streamline all aspects of financial management in the digital age.
To learn more about how INAA can help entrepreneurs, visit our benefits for clients page. Alternatively, sign up to become an INAA member today.