Over the years we have experienced many difficulties when it comes to doing business abroad through an entity, or via another form of representation. The parent or holding company must realize that it loses part of control over its business as suddenly certain foreign rules must be reconned with and obeyed.
Business like to think that albeit that the business is done abroad, it is just a financial or bookkeeping issue, daily decisions can be made as before; the new business is just another ledger to be dealt with by the finance department.
However, foreign leadership should adjust its processes and flow all initiative beforehand via the management of the new business. Leadership and control should be in the country of establishment, including the maintaining of the bookkeeping and the control over the bank account. The trade must be monitored on a day-by-day basis.
We know what CFO’s must be aware of when they set cross border. That is even true when a business only sets up a VAT registration in the Netherlands to support its EU trade. However, it is not only an invoice/financial issue. The logistics manager must talk to the traders. It is a lot about communication, not only internally but also with the foreign service providers. They cannot perform their duties if they are kept in the dark on how trade is developing, or they only receive invoices without background or just ledgers and must guess what they are looking at.
To avoid these issues, which will always lead to discussions, mishaps and misunderstandings (read: unnecessary expenses and a waste of time) it is good that a CFO organizes a smooth and timely exchange of information. Also, it is essential that as from day one onwards, all involved know how decisions are to be taken, and which information should be available at what time.
Jacco started as chartered accountant. Over the years he found that his strong suit not processing administration but improving the financial processes and/or assisting business by developing plans how to reorganize. He readily realized that creating a solution is only part of solving it, but that implementing it properly is key.
In nearly twenty years he has built a proven track record in interim management as one of the founding fathers of SIS FINANCE. His focus is on creating solutions or avoiding problems for financial departments and/or related areas (HRM and ICT).
Jacco provide on a regular basis advice and counsel on setting up financial departments, the implementation of financial (consolidation) systems or the restructuring of the (administrative processes of) financial departments. Through his excellent network of consultants of which many are postgraduates or chartered controllers (many with 10 years or more with the BIG Four background), he is not only able to create the solution, but have it implemented too.
