Navigating local and regional laws and regulations-such as tax compliance, privacy laws, anti-laundering laws, payroll, and accounting-can be big operational headaches for global companies. At the same time, even where controls do exist, they are often manual and limited to a specific country, and can’t easily be viewed or audited from overseas locations. Lack of process makes it difficult to understand and track what is happening to assets-creating a greater risk of fraudulent activity. Many organizations do not have standardized processes with checks in place to ensure compliance across locations, such as how a company should partner with local suppliers or how many bank accounts a local operation can have.
For example, parts of a business could appear more profitable than they actually are.Īnother challenge global companies face is maintaining financial control over operations, especially when entering smaller or emerging markets. This can lead to faulty analysis and impact decisions. As a result, each location is at risk of interpreting and reporting on the performance of the same product and service lines differently than required by the corporate office. Here’s why: A company that sells the same products and services in multiple countries is often using different financial systems and applying different data definitions to activities in each region. As a company expands across geographies and product lines, it becomes more challenging to consistently assess and report on performance, putting management at greater risk of making the wrong decisions.
0 kommentar(er)
