Keys to success
In working with clients that have successfully expanded operations overseas, we have identified four keys to success that greatly mitigate the risk of going abroad:
- Communication. When U.S. companies face problems overseas, including accounting discrepancies, contract disputes, lack of profitability and legal violations, communications is often a contributing factor. Language and cultural barriers can be difficult, and technical differences regarding the definition of certain terms often exacerbate problems. Antela Consulting, LLC can help you set up your expectations for compliance, reporting, performance and profitability are upfront, so that your foreign team and partners understand what rules apply.
- Controls. No matter where you set up shop, U.S. parent companies need to carefully establish clear standards and controls for bookkeeping, loss prevention, safety and quality. Europe highly regulates foreign businesses, making it less risky to do business there, but the penalties for noncompliance with local laws and policies can be severe. On the flip side, businesses operating in less regulated and less economically developed areas of the world may find governmental enforcement so lax they need to provide internally-directed oversight to avoid losses or other problems.
- Reporting. Accurate reporting is the key to legal and regulatory compliance, both with regard to U.S. law and that of the host country. Reliability is critical and relates closely to establishing appropriate controls, but so is comparability. For example, a company’s U.S. balance sheet will look fairly similar to that of its French subsidiary but will have far less in common with Brazilian or Chinese balance sheets. Translation is only part of the problem. With the proper controls, you should be able to generate reports that comply locally and apply globally.
- Tax planning and Local compliance: Effective global expansion depends greatly on tax policy and local law issues that any company venturing abroad should review thoroughly in advance. Antela Consulting, LLC can address these issues and identify outsourcing partners who can help manage your international efforts and be your “eyes and ears on the ground” wherever in the world you do business. In expanding your business overseas, you will likely be subject to the host country’s laws pertaining to employment and termination, vendor relationships, marketing and advertising, environmental and consumer protection, and competition. Defining compliance and risk is also key – in certain cases, local companies may ignore certain policies, but don’t assume you can do the same.