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International business payments made easy

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International accounting services: driving client growth with WorldFirst

29th Jun 2022
Brought to you by
World First logo

International business payments made easy

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International accounting services help businesses overcome the many challenges in managing currency exchange risk. This article will outline how WorldFirst’s account options can help drive international growth.

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Expanding into new markets requires careful coordination with international accounting services. You need to make sure that you are compliant with tax regulations set in multiple regions and remain profitable amidst changing currency exchange risk.

At WorldFirst, we set businesses up with the support they need to drive international growth and maintain compliant accounting records in foreign currency transactions. 

This article will outline how WorldFirst services can help with your international accounting needs and propel business growth. 

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Accounting challenges in international trade

The impact of the pandemic and Brexit poses many accounting challenges for SMEs looking to expand abroad. Uncertainty in exchange rates and ongoing operational disruptions means that accounts teams have to be agile. Accountants must constantly look for new ways to make savings, while upholding impeccable records and adapting to changing legislation, in order to future-proof their business. 

The volatility of market conditions worldwide is set to continue in the years ahead. But we must remember that market volatility is not a new phenomenon to seasoned investors. With rapid change also comes a wealth of opportunities for business growth. Cross-border e-commerce is booming, and with that comes the responsibility of business owners to better serve their customers’ needs. Building strong business ties with suppliers and fulfilment partners can help streamline your supply chain. 

One key area in managing your supply chain is ensuring that your money transfers are completed as quickly and securely as possible – this is where the WorldFirst payment gateway can help.

International accounting services: Managing FX risks

International payments incur some currency exchange risk. 

For instance, if enough time passes between recording a sales transaction and receiving the payment, the currency exchange rate may have dipped, and you may record a debited loss on your accounts receivable.

With a WorldFirst International Collections Account, you can integrate accounts automation tools like Xero and ensure that your accounting records accurately transcribe currency exchange data. These tools insulate businesses from experiencing currency exchange losses to the extent that it harms their business. For instance, with clearly visible accounts data, you can set up forward exchange contracts (FEC) that enable you to set a fixed exchange rate on payments for up to 24 months. 
WorldFirst provides all customers with real-time updates on currency exchange rates, so you can rest assured that you can always access the most up-to-date information for your budgeting plans. Real-time FX updates enable you to add flexible payment windows to your FECs and make further savings on your foreign currency transactions. You can find out more about WorldFirst's foreign currency hedging tools here.

International accounting services: complying with tax regulations

As barriers to international trade break down, tax regulations and accounting standards shift to keep up with ever-increasing demand. For example, in 2021 the EU introduced sweeping VAT reforms for e-commerce businesses selling across Europe. For accountants, the changes are designed to minimise tax fraud, improve online customers' buying processes, and streamline accounting teams' bookkeeping. 

WorldFirst partners, Avalara, offer technology solutions that help cross-border e-commerce brands determine and file their VAT obligations seamlessly. In collaboration with WorldFirst, Avalara has also created an accountant's guide to the EU VAT reforms, which you can download here

Looking further afield than Europe, WorldFirst is also partnered with international VAT calculations software makers, Meridian. This Dublin-based firm offers accounts teams tailored solutions for automating their worldwide tax obligations.

International accounting services: Foreign Direct Investment (FDI)

If you are experiencing rapid international growth, making acquisition deals, or setting up subsidiaries abroad, you need to maintain complete transparency in things like transfer pricing. Transfer pricing is helpful to accounting teams, as businesses incur no losses from currency exchange fees. However, recording these internal transactions accurately is essential in minimising the risk of tax fraud and the manipulation of performance measures. 

The WorldFirst International Payments Account allows you to make fast international payments in over 60 world currencies. Provided you meet our cut-off times for international money transfers, you can send same-day or next-day payments between selected currency pairs. 

All of your transactions are visible from one central dashboard, so you can ensure that you reduce instances of human error in your financial statements. 

WorldFirst offers first-class service to accounts teams

For help on all things currency-related, WorldFirst account holders can contact our knowledgeable team. Whether you have questions on foreign exchange or have queries about adding a currency to your Xero dashboard, we can help accounts teams make the most of their WorldFirst account. 

Businesses have two main account options that are free to open and have no minimum transfer limit. The WorldFirst International Payments Account which is designed to make a wide range of international transactions such as Firm Orders and FECs easier. 

Our International Collections Account also collects funds in up to 10 world currencies. It can process same-day and next-day payments just like our International Payments Account. 

With our services, you also gain access to tools which help you monitor and book forward exchange contracts. You can also find real-time FX rates from your accounts dashboard and click to contact our account management team directly. 

To learn more about WorldFirst account options, click here or give us a call on 020 7801 2388 or email [email protected] and start saving now.