Globalization and Finances – Managing Your Expansion Plan
Whether your business is based in the Americas, Asia or the most remote location somewhere in Europe, global expansion is usually a sign of your business doing well. Your customer base has grown and your product is in high demand in areas you have not been able to reach yet.
While this is an exciting challenge, it is also a daunting one, and there is a long checklist that needs to get taken care of before any successful expansion. The most important thing on that list is financial management. Here is a quick list of things to review to ensure a smooth transition into new territory:
Keep Your Currency Up to Date
A big part of expanding your business into new countries is enabling your financial management structure to accept the various forms of currency and payment that may be native to that specific country. All of your financial structures from the point of sale to your back-end financial tracking must be fully optimized to recognize these foreign forms of payment and allow them to be readily translated into the formats needed to keep all of your books in order. Being able to recognize all forms of payment on a universal scale is essential to a smooth global business expansion.
Confirm Your Tax Compliance
As you prepare to have your business enter these new international marketplaces, it is important that both your financial and legal teams have fully vetted that country’s taxation laws. The countries you expand in may have different regulations for everything from the importing and exporting of goods to the taxes implemented on those goods at the point of sale. Assuring that your business is fully compliant and up to date on these regulations could make all the difference and result in successful international operations for many years to come.
Implement Your Fraud Protection
Cyber attacks are happening more often than ever before – and this includes everything from identity theft to enterprise-grade security risks. Your business’ financials need to be protected from any fraudulent international activity in order to best protect your customers and your assets. Certain countries may be more susceptible to certain security risks than others, so be sure to do your research and protect your business from any potential fraudulent threats that may be rampant in your global expansion targets.
Global Online Payments
International expansion presents huge opportunities for payment providers, far beyond what is possible in any single domestic market. Worldwide, e-commerce is worth more than $1.5 trillion per year and growing rapidly. Successful international expansion requires offering not just the right payment methods and acquiring options, but also the ability to configure them quickly and efficiently. This is what ModusLink delivers through our global payment network.
Credit and debit cards currently account for more than 57% of the global e-commerce market, but that share is falling as alternative payment methods are expected to grow to 59% of all e-commerce transactions in 2017.
With ModusLink’s global network of more than 300 alternative payment methods and card acquirers, which is expanding by four additional connections on average per month, payment providers have the technical connectivity to reach e-commerce markets in more than 160 countries. And because our entire network is available through a single RESTful open API, integration is simple and time to those markets quicker than ever.
Growing your business should always be considered a positive endeavor, and having the proper partner to help you build that business could be the key ingredient in allowing you to maintain consistency and control through the expansion process. ModusLink’ suite of financial management tools are here to help ensure your business’ international success. Contact us to learn more.
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