The world has become increasingly interconnected, enabling business owners to supervise operations, clients, and rules from different regions of the globe. While this presents new opportunities, it should be noted that there are emerging complexities around finances.
Scheduling tax payments is not the only reason a business requires bookkeeping services. It is a vital contributory factor for maintaining a healthy and globally scalable business.
To assist you with obtaining a competitive edge, I have outlined six critical bookkeeping hacks for global entrepreneurs.
1. Use Cloud-Based Accounting Software
Why is it important:
Basic bookkeeping is possible when a business is in its infancy stages, but with cross-border transactions, working with remote teams, and international clients, there is a need for an advanced, more reliable, and adaptable system.
Advanced Hack:
Bookkeeping is simplified with cloud-based applications like EasyBooks, QuickBooks, Xero, and Zoho Books. They not only enable mobility, but also allow collaboration and report access on the cloud, meaning accountants do not have to be on site. These applications also have a myriad of features, including but not limited to:
- Permanent shifting of the spending plan provided fund control mechanisms, driving signed budgets.
- Supply-side automatic bill creation.
- Ease of integration with external payment processors, CRMs, and eCommerce platforms.
Another great benefit of these platforms is that they are cost-effective and grow with the business. Whether you are a one-person business or a corporation with employees in five different countries, your technology will be there to assist you.
2. Automate Multi-Currency Transactions
Why it matters:
If you are dealing with vendors or clients from other countries, you will have to work with different currencies. It is especially difficult to manually convert values because they are always changing.
Expanded Hack:
Your business’s financial health can be positively impacted if you look for accounting software with multi-currency options that do automatic conversions through up-to-date exchange rates. This helps to:
- Update financial statements in real-time, ensuring they are precise and relevant.
- Prevent mistakes in currency conversion computations.
- Monitor profits and losses by individual currencies or countries with minimal effort.
Integrate accounting packages with Wise (TransferWise) or Payoneer. These services enable businesses and individuals to accept payments in different currencies, hold balances, and pay contractors or suppliers directly without incurring costly conversion fees.
3. Create a Chart of Accounts That Works Globally
Why it matters:
Every company’s accounting system has a chart of accounts, which serves as the framework. While a one-size-fits-all template is convenient for smaller companies, it is insufficient for more sophisticated multinational corporations that need to granularly manage finances across countries.
Expanded Hack:
Create a detailed custom chart of accounts that organizes income, taxes, and operational expenditures by region or project. Examples:
- Income: “Sales – North America”, “Sales – Europe”
- Tax: “GST Paid – Australia”, “VAT Collected – UK”
- Payroll: “Contractors – Philippines”, “Salaries – US”
This allows you to monitor the performance of each specific market, enhances the trackability of tax reports, and enables effective budgeting across different jurisdictions. Trackable region-specific expenses such as international shipping, customs duties, and local advertising are even feasible.
4. Stay Ahead of Compliance and Tax Deadlines
Why it matters:
Tax laws and compliance regulations vary from one country to another, and with filing deadlines come specific requirements for each jurisdiction. Not meeting timelines in a new regulatory context can result in stiff penalties, audits, and, in extreme cases, legal proceedings.
Expanded Hack:
Use compliance calendars and integrate your accounting software with Google Calendar, Asana, or Trello to visualize the filing timetable of each country and manage deadlines for payment and filing of taxes associated with each country.
You can also:
- Get local tax specialists for local advice
- Use EasyFiling’s Compliance Reminders or similar services
- Keep digital backups of receipts and invoices for audit readiness
A proactive compliance management approach helps build a good reputation with local authorities and banks. Additionally, it improves one’s chances of getting a business loan or convincing investors who expect clean, easy-to-understand accounts.
5. Reconcile Accounts Monthly
Why it matters:
Reconciling your books means checking the balances recorded in your software against the actual balance in your bank account or payment processor account. Achieving monthly reconciliations ensures mistakes are found within the shortest time frame before they escalate into larger issues.
Expanded Hack:
Create a recurrent calendar invite for monthly reconciliation sessions and honor it. Make it a habit, like reviewing sales or checking KPIs. Then, during reconciliation:
- Identify and match recorded income/expense bank transactions
- Check for potentially fraudulent duplicates or duplicates
- Adjust for differences in the fee or currency conversions
Confirming account balances every month helps maintain accurate books. Most accounting software provides automatic syncing of bank feeds. All that is left is for you to confirm and classify. Regular reconciliation ensures accuracy in financial reports while enabling early detection of fraud or internal errors.
6. Outsource Bookkeeping to Experts
Why it matters:
The ever-changing business environment requires correct bookkeeping. Business bookkeeping and its financial components get complicated as a company expands to more stores, employees, and even countries. Trying to manage every financial obligation, including payroll or international tax compliance, while focusing on growth might be straining.
Expanded Hack:
Use LLC or international business virtual bookkeeping services for effortless payroll processing. They are ideal for multinational startups and automate several processes. Consider EasyFiling’s EasyBooks, for example. The service offers:
- Bookkeeping automation for effortless payroll processing
- Personalized for eCommerce businesses and remote working teams
- Replace in-house accounts with EasyFiling’s team of expert bookkeepers
- EasyBooks also provides tailored packages for various businesses.
Let your employees resolve issues directly with accountants and focus on growth, strategy, and improved customer experience.
How EasyFiling Can Help with Bookkeeping
The difference between a global or US-based business and EasyFiling is that bookkeeping isn’t just accounts. It means stay compliant, audit prepared, and financially savvy.
This is where EasyFiling helps, as accountants do the magic.
We provide EasyBooks, a specialized service in bookkeeping specifically for:
- Owners of U.S. LLCs (both resident and non-resident)
- Global business entrepreneurs
- eCommerce startups and digital service marketers
With EasyFiling, you receive:
- Accounting set up and maintained on the cloud
- Tracking of transactions in multiple currencies
- Reconciliations are completed on a monthly and quarterly basis
- Tailored financial reports by selected region or project
- Tax documents for the U.S., such as preparing Form 5472, along with other associated EIN filings
- International operations are understood by dedicated bookkeepers assigned to you
For new starters and those running multi-national corporations, EasyFiling guarantees clean, compliant, and reliable records for informed decision-making.
More than work done on spreadsheets is what your business deserves; expert bookkeeping aid is available in EasyFiling.
👉Know more about EasyBooks by EasyFiling
Final Thoughts
International business may open up a myriad of growth opportunities, but it also comes with equal amounts of responsibility. As a global entrepreneur, automating your bookkeeping is not optional, it’s your powerful advantage.
Managed with the right tools, strategies, and support, financial management can go from being a nightmare to a competitive advantage that others can only hope to achieve.
Looking for a hand to help you reconcile your bookkeeping data?
Look no further than EasyBooks by EasyFiling, the intelligent bookkeeping tool tailored for global entrepreneurs and digital founders.
Frequently Asked Questions (FAQs)
1. What is the essence of bookkeeping to global entrepreneurs?
Always enables tracking of income, expenses, and general cash flow. For global entrepreneurs, it ensures compliance with tax obligations, control of currency, and overall assessment of enterprise performance across different markets.
The books being accurate gives freedom to make rational decisions without being endangered by financial or legal troubles.
2. Is it feasible to independently handle bookkeeping using an accounting application?
Due to easy access to modern accounting tools, many users prefer doing bookkeeping tasks on their own, which should not be necessary with proper delegation of tasks.
Although theoretically possible, dealing with multiple currencies, tax jurisdictions, or complex payment systems makes it exceedingly tedious and prone to error. It is best to let professionals handle such matters so accuracy, compliance, and peace of mind are guaranteed.
3. What are the bookkeeping services offered by EasyFiling?
EasyFiling includes a comprehensive list of services under EasyBooks that is inclusive of:
- Setting up and overseeing cloud accounting systems
- Bookkeeping in multiple currencies
- Monthly and quarterly reconciliations
- Reporting on financial statements
- Preparations of taxes at the year’s end and compliance services, support, IRS form 5472 for foreign-owned LLCs, etc.
4. Does EasyFiling have bookkeeping for only American companies?
No, EasyFiling focuses on formation and compliance of US LLCs, but our bookkeeping services are offered to entrepreneurs around the globe, including those with eCommerce and service businesses or start-ups based outside the US that operate within the US.
5. How does one begin with EasyFiling’s bookkeeping service?
Getting started is very simple. Go to easyfiling.us and book a free consultation or go directly to EasyBooks. Our team will look at your business structure and devise a custom bookkeeping strategy that works for your situation, whether you are a solopreneur or a worldwide start-up.
Swostika Silwal
