Having a global business enterprise does not only come with great administrative responsibility, many accounting processes come into play too. First and foremost, you would need to consider the tax implications of doing business globally, and most importantly, you would need to ensure an impeccable accounting system for managing multiple currencies.
Managing multi-currency transactions within NetSuite
As a global business owner, you would know that there are some tax and compliance risks that your business is susceptible to. These range from quoting incorrect figures to miscalculating exchange rates which could subsequently lead to filing incorrect information with the IRS. Fortunately, NetSuite ERP provides an effective way to manage multi-currency transactions and keep track of financial data across multiple locations.
We take a look at some of the benefits of the software’s built-in multi-currency feature:
Accurate currency conversions in real-time
When running a multi-national business transactions take place in various currencies around the clock. This requires fast processing of currency conversions to keep financial records up-to-date, regardless of the currency in which sales are processed. NetSuite offers different exchange rate types and conversions. This includes daily, average, or custom exchange rates. The software goes the extra mile to keep your financial records accurate as it provides tools to help you manage rate fluctuations as they happen.
Regulatory compliance
To stay within federal regulation for global business, you need accounting software that can automatically keep your books compliant. This can become especially complex when using multi-currency bank accounts. NetSuite supports International Financial Reporting Standards (IFRS), to ensure that your records meet regulatory standards.
Easy multi-currency reporting
NetSuite is known for its sophisticated customization and reporting abilities. The software offers multi-currency reporting, which allows businesses to access and analyze their numbers in different currencies and locations. Want a total round-up of your revenue in one currency? NetSuite makes it all possible.
Managing multi-currency and interstate transactions can be tricky as it would require setting up multiple currencies and exchange rates, as well as linking multi-currency bank accounts, and more. This would require the expertise of a professional that not only understands the financial risks and implications of running a global business, understands multi-state transactions, but that also knows the ins and outs of NetSuite and how to set the software up to serve the bespoke needs of your business.
NetSuite remains highly functional in its ability to provide the insights you need to take decisions to grow your multi-national business, regardless of the different currencies in which your business tracks transactions. Manage it all in NetSuite.
At Fusion, our NetSuite experts are skilled at aiding global businesses with their accounting software setup. Getting the setup right is crucial as this forms the basis of the automation your business requires. An incorrect setup may contaminate and confuse your accounting records. We can help you avoid messy records and aid your business with a smooth multi-currency software setup. Consult with one of our experts today.
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This blog article is not intended to be the rendering of legal, accounting, tax advice or other professional services. Articles are based on current or proposed tax rules at the time they are written and older posts are not updated for tax rule changes. We expressly disclaim all liability in regard to actions taken or not taken based on the contents of this blog as well as the use or interpretation of this information. Information provided on this website is not all-inclusive and such information should not be relied upon as being all-inclusive.
