How To Successfully Deal With Multinational Accounting Issues

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Business transactions have changed quite a lot in the past few decades. Much of the development may be attributed to the availability of the Internet and networks, which make business-related dealings much easier to do. The recent changes have given rise to wider reach in market scope for any kind of business.

Another trend that has gained in popularity in the field of business is the development of a multi-racial workforce. This is common in companies and industries that have set up shop in several countries with varying languages and dialects. According to the U.S. Department of Commerce, multinational companies in the country have employed more than 34 million workers in 2011, which goes to show that differences in regional backgrounds of employees have not been a hindrance for the U.S. economy.

Hiring bilingual or multilingual employees is a common process for multinational companies. Whether the need is for Chinese translators, Spanish accountants or Russian-speaking employees, mother companies with regional offices have to deal with all sorts of languages and cultures. However, the good news is that employing locals and targeting local markets lead companies to effectively spread their wings into untapped potential.

Alas, this comes with a price: language barriers in the workplace. Company executives feel the brunt of handling a variety of languages in a single pot, to the point that this barrier may cause internal conflicts and administrative issues. “Managers have a responsibility to affirmatively determine where language and cultural differences in the workplace can be accommodated and where they cannot.”

If you are currently handling a multi-racial workforce or managing the accounting section of a multinational firm, here are some tips on how to deal with potential problems associated with company diversity:

Review work requirements in relation to cultural backgrounds

Is your employee refusing to shake hands with clients because it’s against his cultural beliefs? You may have discovered these kinds of cultural quirks only months after you’ve hired your employees, but it’s not too late to remedy this.

You have two options here: (1) ask the employee to do the task that they’re supposed to do, or (2) assign them to other responsibilities that don’t clash with their cultural background.

Be prepared to spend more for better communication

Dealing with multilingual employees may require you to prepare documents according to their respective languages. Sure, this will entail a lot of money and effort, but this will already do wonders to inter-office relationships and effective communication.

Remember that being too cheap may hurt your business instead of helping you earn more. Use this same principle when it comes to shelling out for improved communication in the company.

Adjust to the local setting

Multinational companies usually carry an umbrella set of objectives and policies that may not fit the regional locations where they set up. Company owners must accept the fact that they might need to adjust to the culture and laws of the country where they are operating. Some world governments, for example, require standard templates for business documents, which multinational companies will have to comply with.

CEOs and financial managers working in multinational firms need to accept the fact that the world is already getting smaller, and it’s pretty standard fare to experience problems and issues related to language and culture. However, with patience and passion to reach the locality, people who manage multinational companies can turn things around to their advantage – and hopefully make the company profitable and successful.

The High Cost of Online Delivery Services

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Ordering food, drink, presents and many other products online has made all our lives easier, with the opportunity to place an order for whatever we need without leaving the home. The costs are also relatively small in most cases, compared to the amount that would otherwise be spent on petrol and transport services.

For a lot of retailers though, they are now realising the expense that online deliveries can create. In turn, the additional costs being introduced are having an impact on businesses that use their delivery services and leading to more using cheaper alternatives such as InXpress and others for their professional delivery services.  

Online Retail Sales

Online retail sales have seen a massive rise in the past decade or so, with many experts constantly proclaiming the high street to be dying. Competition has increased so much that most are battling with each other to offer the cheapest prices and quickest delivery times.

In some cases this has led to some retailers offering unprofitable delivery options, which has resulted in them exploring ways to get back the costs. Certain retailers that were offering free delivery have introduced charges to try and cover the costs.

Minimum Orders

In 2012 Sainsbury’s were the first retailer to introduce minimum orders for online orders as they tried to avoid unprofitable deliveries. In certain cases they would be losing money from such small orders being placed due to the petrol, driver and other costs involved.

With delivery charges in place already, a minimum order also ensured that no customer would spend more on delivery than the cost of their actual goods. There may have been worries that they would lose out on some custom, but the majority of retailers now implement minimum orders as well.

Click and Collect

According to research, margins for some supermarket online sales are just 1%, compared to 2.5% and more for in store sales. Such low margins are part of what is making online deliveries unprofitable for a lot of retailers and leading to them exploring new strategies.

Click and collect is one such option that is used by many retailers to try and bring their online sales margins back up. With a much smaller charge for the service and no need to pay for fuel and drivers, it makes more economic sense for a lot of supermarkets and other retailers. Online deliveries will not go away but they may continue to evolve.   

 

Saving on Delivery Costs for Small Businesses

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Whatever type of business you run, it’s likely that you will spend a lot of the monthly budget sending out parcels and letters. Whether it’s sending out deliveries to clients and customers or simply dealing with business correspondence in a more traditional manner, the costs can soon add up.

For small businesses that are working on a tight turnover, these costs can have a big impact on the company’s profitability. There are a number of different ways small businesses can cut back on their delivery costs, for both domestic and international deliveries.

Delivery Comparison Sites

The internet has seen a big rise in the number of comparison websites, with everything from car insurance to holidays available to compare online. Parcel2Go is another such site that compares the prices of sending parcels all around the world through leading couriers. Easily compare the weights, delivery options and couriers to see how much can be saved. Or if you’re just in need of a quick quote then this can be arranged simply, whether sending within the UK, to Europe or further afield.

Auction Bids

For sending packages across the UK, reverse auction sites are a good option. This works by transporters bidding to deliver your parcels, and many will deliver all sorts of items, from live animals to furniture and more. It can be a bit more risky than sending through an official company, so check your deliveries are covered. Most transporters should have goods in transit cover, but it is always safest to check first.    

Reduce Package Dimensions

Sending large packages costs a lot more than smaller ones, so where possible it is advisable to reduce the weight and dimensions of your parcels. Tightly package the corners using packing peanuts or bubble wrap so they fit into the smaller dimensions bracket. These will change for each delivery service, so be sure to check them before. Using lighter packaging can make a difference weight wise as well, such as thinner cardboard.  

Bulk Up

Packaging materials can also add to the cost of sending letters and parcels. Buy in bulk to cut the costs and also try to send as many items out in the same package or delivery too. Recycling the boxes and packaging materials you receive is another way to cut back. Simply add a personal touch by including some of your business’ stamps or packaging for that professional touch. All these tips will be cheaper than sending directly through your local delivery firm.