Back-office, front-of-mind: business process, compliance, and reporting

Perspectives

Back-office, front-of-mind: Business process, compliance, and reporting

Global considerations for mid-market companies

Expanding into global markets can offer companies of every size opportunities to diversify their operations, reach new customers, and tap into new sources of materials and talent. The articles in this series focus on international expansion issues that mid-market companies should address as they consider growing globally.

Back-office, front-of-mind: Business process, compliance, and reporting

Back-office business processes that can help keep an enterprise functional, efficient, and compliant may need special attention when companies consider overseas expansion. The ability of the new operation to align with its new environment depends on the reliable function of common business processes, such as finance, accounting, payroll, tax compliance, financial reporting, and technology services.

Here are three considerations:

  • First, evolving technology and fast-changing regulations add complexity to functions like payroll and tax reporting. 
  • Second, crossing borders adds complexity and change. A tax or employment rule may have remained stable in the home country for generations, but if the regime in the new host country operates differently, even a degree of variance can add up to big challenges.
  • And third, it’s simply more difficult to manage detailed business processes at a distance. You don’t want a slip now to trip you up later.

A middle-market company that’s expanding into an overseas market is likely to consider its resources spoken for, if not stretched thin, even before these operational considerations arise. Because they appear to be straightforward and established, it may be tempting to assume they will take care of themselves. This is a temptation to avoid.

Visit the "International expansion for mid-market companies" series homepage

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