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Companies engaged in foreign trade that aren’t prepared to handle the demands and regulations of their market face a high likelihood of operational difficulties. These regulations vary widely depending on the goods being traded, and not all businesses have the skilled professionals required to navigate such complexities. This is why the expertise of an accountant is crucial for an importing company.
In this article, we’ll dive deeper into this issue. Keep reading to understand the main challenges that companies in the import/export sector face, how outsourcing accounting can improve efficiency, and the common problems accountants encounter in this field.
Challenges in the Import/Export Sector: Legislation, Bureaucracy, Technology
While foreign trade can offer growth opportunities for some businesses, and is a necessity for others, it generally requires a lot of work. Several factors contribute to this complexity.]
First, companies need to stay informed about resolutions and regulations from different countries that can affect their import/export methods and procedures. Businesses in this sector often face legal issues, such as product holds at customs and tax-related problems. These issues are typically caused by irregularities in documentation.
Any problem of this nature can have a significant impact on a company’s accounting. The bureaucracy involved in foreign trade transactions is unforgiving, so accountants for importing companies must pay close attention to these matters. For more on the importance of tax compliance, read this article.
Additionally, many companies still neglect the use of technology to help address some of the most common issues. However, technology can optimize foreign trade operations by automating certain process steps. Businesses should be aware of the tools available to help them gain a competitive edge. Explore the benefits of digital accounting for import businesses in this article.
Read Too: TAX PLANNING FOR IT COMPANIES: UNDERSTAND THE IMPORTANCE
Why Outsource Accounting? Cost and Efficiency
No matter the size or industry, efficient management is always linked to balancing resource savings, work efficiency, and quality results. When it comes to accounting, companies often need to decide whether to designate a responsible professional, create their own department, or outsource the service.
The best decision will depend on the company’s size, industry, and market trends. However, for many businesses, outsourcing is the most efficient solution. Exceptions usually apply to large corporations that can build their own accounting departments, and very small businesses that don’t rely as heavily on accounting for day-to-day operations.
Outsourcing accounting services can often be more cost-effective than hiring an in-house accountant, especially for importing companies. A specialized firm can provide access to a wide range of resources and technical support tailored to specific market segments. Learn more about outsourcing benefits in this guide.
Additionally, outsourcing strategic sectors allows companies to reallocate time previously spent on those activities to focus on core business operations.
See more: Best Accounting Softwares in Brazil
Accounting and Foreign Trade: Challenges for Accountants in Importing Companies
The primary challenges in foreign trade accounting arise from professionals’ lack of experience in meeting the demands of such transactions. Import/export operations require familiarity with systems, procedures, and documents, including:
- SISCOSERV: Integrated System for Trade in Services, Intangibles, and Other Operations that Produce Changes in Assets;
- Siscomex: Integrated Foreign Trade System;
- Exchange Rate Records;
- Currency Exchange Contracts;
- Issuance of Import Invoices.
Working in foreign trade requires the skills and experience to navigate these specificities. As a result, more and more companies in the sector are turning to outsourced accounting services.
How CLM Controller Can Help Your Business
Specialized companies like CLM Controller offer tailored services for importing businesses. In addition to managing all of your company’s accounting needs, we provide the necessary support for strategic issues, such as currency exchange closures, registering with Siscomex/Radar, and issuing international-standard invoices.
With over 30 years of experience in the market, CLM Controller takes a comprehensive approach, from aligning expectations and goals to developing strategic plans for scalable and sustainable business performance.
If you need experienced accounting support to provide the best strategies for improving your company’s financial performance, CLM Controller is here to help.
