Are you a global business expanding into the United States? Accounting for U.S. subsidiaries of foreign entities presents special challenges with tight deadlines, complex regulations, multi-currency processes, and a competitive marketplace. By outsourcing your accounting, you can help your new entities thrive in the U.S. market and focus on creating revenue instead of spending time on complicated accounting.
Here are 3 major advantages of outsourced accounting for your U.S. subsidiary:
1. Reduce Time Needed for Training
If your foreign business is expanding into the U.S., that typically means your employees are either new to your company or new to the United States. Either way, it can be difficult and expensive to hire financial employees with multi-entity accounting experience. And no matter who you find, there’ll be a training period as they either learn the processes, culture, and requirements of your company or the accounting standards of a new country. By outsourcing your accounting to a firm with experience helping global firms, you don’t need to spend time and money training your own team members to deal with the complexity of international financial operations.
2. Set Up Legal and Financial Structures Correctly
Getting set up as a corporation in the United States means navigating a maze of regulations and standards. An outsourced accounting firm can ensure your subsidiary’s finances are set up in compliance with U.S. regulations and accounting standards. Outsourced accounting can also help your business stay on top of any standards that may change in the future – so you don’t need to worry about the trivialities of upcoming U.S. regulations or wonder if you’re fully prepared for an audit.
3. Maximize Financial Visibility
Foreign subsidiaries have especially complicated accounting requirements, such as:
• Intercompany transactions
• Revenue recognition
• Inter-entity consolidations
• Multi-currency operations
• Complicated reporting needs
Many multi-entity businesses find it difficult and expensive to keep up with the bare minimum of their accounting needs. A U.S. subsidiary should be focused on generating revenue for the parent company, not daily accounting tasks. By outsourcing your accounting, you can be sure your everyday financial processes will be completed. In addition, you will receive tailored reports and analytics allowing you and your key decision-makers to focus on the big picture of your finances. An outsourced accounting firm can automate intercompany transactions, guarantee timely consolidations, create reports that meet the requirements of your parent entity, and deliver data right to your computer screen in the form of real-time dashboards and KPIs.
Learn More About Outsourced Accounting for U.S. Subsidiaries
GreerWalker is a trusted accounting partner for international businesses. We offer outsourced accounting solutions that are flexible and scalable, and a full team with many years of experience helping global businesses seamlessly expand into the U.S. Please contact us with any questions or you can read our article for more information about our different levels of outsourced accounting service.