Is your global business missing out on a ‘big picture’ view of finances?
This post describes how Sage Enterprise Management gives CFOs of companies with a global footprint the functionality needed to simplify complex, multi-country financial management.
Geography is no longer a major limiting factor for business expansion. In a global marketplace connected by digital networks, international ambition is not only possible—it is often essential to remain competitive.
But operating in multiple locations and effectively managing your enterprises’ financial health requires dealing with multiple languages, currencies, fluctuations in exchange rates, and varying legislation affecting tax and financial reporting.
Sage Enterprise Management is an Enterprise Resource Planning (ERP) solution that’s designed to make accounting and reporting across multiple countries more intuitive.
Challenges of global growth can be overcome
Diversification, acquiring assets overseas, or running branches, factories or warehouses in locations beyond Australia’s shores is often a wise move.
However, operating across multiple countries comes with challenges including:
- Global economic and political volatility
- Complex and changing regulatory obligations
- Effect of exchange rate on offshore earnings
- Dispersed teams, knowledge and information silos
- Increased cultural barriers and reputational risk.
A survey by fintech company Stripe of 9,000 Australian businesses found many felt that running an international business was getting harder—especially due to costs related to compliance and complex regulatory issues.
When Deloitte asked more than 2,000 C-level executives about their readiness to leverage the digital economy, they commonly cited ‘organisational or geographic silos’ as a key challenge.
Doing global growth well rests in no small way on the infrastructure you have in place to ensure compliance, cross-enterprise visibility and cohesion—especially when it comes to your ability to balance the books and report on your financial activity with accuracy.
Sage Enterprise Management simplifies multi-country finance
Multinational finance managers that implement Sage Enterprise Management for complex financials are better positioned to consolidate and analyse financial information for better decision-making in the short and long-term.
Here are some everyday financial management scenarios made easier with Sage:
- Reporting is quicker and more precise. The system handles different reporting calendars for different parts of the world. You can aggregate financial information from all branches or business entities globally, with the flexibility to report by specific sites or teams as well. So you can group your Singapore and New Zealand subsidiaries into ‘Asia-Pac’ to provide clarity at the regional level.
- Multi-ledger and flexible chart of accounts makes it easier to conquer complexity. You can apply analytical dimensions to clearly differentiate different regions, products and teams within your full chart of accounts. Multi-ledger capability means you can maintain both an official ledger for reporting and an operational one structured to more closely reflect internal needs.
- Remain Compliant and stay abreast of legislative change. Sage offers country-specific legislation packs to reflect current legislative and tax requirements in your global markets so you can easily manage your GST reporting needs in Australia, as well as different taxation and reporting regimes in the other countries you operate.
- Automation makes inter-company transactions more efficient. If one of your offices in Australia places a purchase order to buy from your operation in the US, an intercompany sales order is automatically created in the US ledger. It’s also easy to manage inter-company distributions if all your accounts are paid out of one head office.
- Multilingual options for software interfaces. Both English-speaking and non-English-speaking team members can use the same solution so that data displays in employees’ native language.
- Straightforward multi-currency capabilities mean you can operate, report, purchase and sell in the currency of your choice across different parts of your enterprise, and then at the end of the month, you can perform a currency transaction revaluation before consolidating.
- Avoid duplication of data. Perhaps your businesses in different locations share common customers or suppliers? Sage uses the concept of a ‘Business Partner’ to capture contact details once within the system—which can then be shared across businesses, with each branch or business being able to track their specific interactions whilst having a common credit limit.
- Analyse and forecast with skill. Sage can provide strong business intelligence tools that help you make sense of data, with all information from within your ERP and other systems mapped and interpreted in meaningful ways. The system can also help you predict financial performance with cash flow forecasting and risk analyses of your debtors.
Succeeding in offshore markets requires business systems that support a big picture view of finances. A connected enterprise is one that’s more capable of sustainable growth, regardless of its size or location.
CFOs of multinationals with complex financials that choose Sage Enterprise Management will benefit from high-level visibility, automation and insights that enable them to extend their enterprise’s competitive advantage.
Looking to improve how you manage finances across multiple countries? Contact us on 1300 045 046 or email firstname.lastname@example.org.
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