Accounting provides companies with important data and helps them comply with laws and accounting regulations. For cross-border business actions, especially with different currencies and countries (jurisdictions), automated accounting is essential.
In electronic marketplaces, business actions are often separated from associated financial transactions. Platforms such as Amazon combine sales revenue and fees in one payout. This increases the complexity in accounting because many business actions with different tax rates and countries have to be assigned to a single payment receipt in the bank account.
Knowing the Regulatory Framework
The European Union creates a uniform market and sets an accounting directive. Nevertheless, accounting and tax regulations differ in the member states, which requires special reports for inquiries from foreign authorities about VAT-relevant business actions.
In addition, the requirements of the accounting directive are growing for non-financial aspects such as sustainability. Companies should deal with relevant regulations for accounting compliance at an early stage in order to be able to proactively plan and implement necessary measures.
Using Information and Communication Systems
In the digital era, information and communication systems are indispensable for accounting. They make it easier to record and process business actions and associated financial transactions and enable compliance requirements to be met.
The right accounting software can automate processes and make them transparent. This is particularly important for companies that sell on electronic marketplaces in different countries and are confronted with different data formats and billing models.
Meeting Compliance Requirements
Companies must always be informed about current and upcoming legal developments. Continuous review of laws and regulations is central to accounting compliance. Specialized accounting software and appropriate compliance services reduce operational effort and liability risks. These services often offer automated monitoring and keep companies informed.
Having complex questions and uncertainties, it is advisable to consult tax advisors and experts at an early stage. Technology facilitates the exchange of information and, combined with expert knowledge, ensures efficient accounting compliance at minimal costs.