International Accounting Services – Accounting’s Next Step
International accounting services are becoming more and more popular as an increasing number of businesses spread to the global market. There is a great benefit in crossing borders and cultures, as it guarantees new audiences and new ways of work. International accounting services help these businesses deal with daily needs for financial reporting, financial accounting, payroll, and more.
What are the benefits of these services and how can your business find the best international accounting companies? Keep reading on as we provide you with some detailed analysis of the best ways you can step into the global market.
Benefits of the International Accounting Services
International accounting services offer many benefits for businesses that expand their work and want to enter the global market. Some of them are:
- Tax optimization and reporting
If a company wants to operate in another country, it has to comply with that country’s tax laws and regulations. This usually includes calculating taxes owed, filing tax returns,etc. It is important to follow the rules in each location where your company operates. International accounting services will take care of the correct tax optimization and reporting.
- Currency conversion
Currency conversion makes sure that financial statements correctly show a company’s financial performance, no matter the location. International accounting converts financial transactions into a common currency (such as the Euro or US dollar) to simplify reporting and analysis.
- Financial reporting
Financial reporting is probably one of the most important parts of international accounting since it provides stakeholders with detailed reports about the company’s current financial performance. This report needs to comply with accounting standards such as International Financial Reporting Standards (IFRS) or Generally Accepted Accounting Principles (GAAP). Which one is better for your business? This article will provide you with an answer.
- Audit services
Accounting standards need to be complied with, and audit services will ensure exactly that. By examining financial statements, auditors will assess the correctness of financial reporting. This will help discover possible mistakes in the reports, allowing companies to correct them on time.
- International tax planning
Across different jurisdictions, global companies need to have a correct tax position. International tax planning helps with understanding laws and rules across countries so your company can operate safely and legally. This is very useful in risk management as well.
Among these benefits, there are more, such as transfer pricing, cost savings, risk management, and access to global networks.
International Accounting Standards
The International Accounting Standards Board has issued a set of accounting guidelines and principles called International accounting standards (or International financial reporting standards). These standards have been adopted by 140 countries. These include the European Union, Australia, and Canada, as well as many emerging markets. Some of the main benefits of these standards are consistency and transparency.
These standards help all financial reports to follow the same standards and the same language. This benefits investors across the globe as they can have correct information about certain companies.
IFRS includes a variety of topics, some of which are:
- Intangible assets (copyrights, trademarks);
- Presentation of financial statements;
- Inventory valuation;
- Business combinations;
- Employee benefits;
- Consolidation and joint arrangements;
- Revenue recognition, and more.
A similar set of rules is called The Generally Accepted Accounting Principles (GAAP) whichalso includes a lot of different topics, including:
- Industry-specific guidelines
- Accounting principles
- Accounting assumptions
- Financial statement presentation, and more.
What are the differences between GAAP and IFRS?
After concluding that there are two sets of rules that international accounting services can use, you may wonder which one is better for your business. Let’s look at some of the main differences between GAAP and IFRS:
|Users||Used in the USA||Used in over 140 countries, excluding the USA|
|Treatment of inventory||FIFO (first-in, first-out)||Weighted average cost method; FIFO (first-in, first-out)|
|Presentation of financial statement||Allows for separate statements of comprehensive income||Requires a statement of comprehensive income that includes all gains and losses|
Some industries might prefer one set over the other due to their regulations.
The international accounting services at Unija
The best option when it comes to companies that offer international accounting services are those companies that are international themselves. This means that an accounting company that already deals with many different regulations in different countries understands how important transparency and correctness are.
What we provide
At Unija Smart Accounting we have developed and implemented an advanced Unija Smart Accounting system. It represents a new generation of accounting that connects all the key services:
- and IT solutions.
Unija is an international accounting company that offers high-quality services and solutions, as well as satisfaction and trust. We offer consulting, accounting, and payroll services to companies of all sizes in 14 markets of Central and Eastern Europe with professionalism and accountability. We cover all taxes and legal issues in the entire CEE region.
Our team will help the clients identify and analyze potential problems and challenges, as well as advise them to take preventive measures to prevent their recurrence. Also, advanced data processing lets us provide our clients with credible insight into customized reports. These reports help our clients in the business decision-making processes.
Unija Smart Accounting will provide international companies with accounting support for their business units (whether at home or abroad) alongside a unified reporting system regardless of the tax legalization and accounting specifics of those countries.
Here, you can send us an inquiry and our experts will answer all the questions or concerns you may have about expanding your business. All the services mentioned in this article are offered by Unija and more.
International accounting services provide expertise in optimizing tax strategies, navigating global financial complexities, ensuring compliance, and empowering your business. As technology advances, and we are more connected than ever, accounting is also going through changes. Transparency and standardization are the key factors that guarantee reliability.
At Unija Smart Accounting, we offer everything your company needs in order to enter the regional or global market.
Visit our page to find out more.