Accounting for Growth – Key Operational Insights for your Growth in America
In episode 7 of the America Made Easy Podcast, we explore US accounting principles with Avitus Director of Accounting Services Andrew Miller from primary differences in US GAAP rules to how to go about setting up your US chart of accounts.
If International investors setting up in the US can expect one thing, it is complexity. Not only will they have to develop dynamic marketing and sales strategies to effectively traverse a market 40 times larger than the UK, but they also face the necessity of setting up operational processes capable of navigating the myriad of compliance standards, which exist in a market of that size. This is particularly relevant for financial reporting and accounting.
Companies eyeing a US expansion will ultimately make a significant financial investment in the capital expenditures necessary to establish themselves and their brand in the market. Their growth will likely result in business activity in several US states with vendors, customers and staff. A company’s capacity to accurately track that activity and comply with reporting requirements that will almost certainly differ from state to state, in addition to the layer of federal reporting, will determine their ability to mitigate costs, to ensure a positive ROI and to scale.
The different accounting standards investors face in the US market mean processes must be refined. While companies in Europe are accustomed to the streamlined principles of IFRS accounting, the rules of US GAAP are complex and numerous. With 50 different states that all differ on deadlines and views for income, sales and property tax, it is important that international investors think about how they will set up their US accounting to manage that complexity.
In episode 7 of the America Made Easy Podcast, we explore US accounting principles with Avitus Director of Accounting Services Andrew Miller from primary differences in US GAAP rules to how to go about setting up your US chart of accounts. That includes the importance of aligning your tax and accounting processes and key questions for the relationship with the US subsidiary’s parent company.
Tune in to our 7th full length episode as we discuss the role of accounting in ensuring a successful US expansion and why your company should leverage on the ground expertise to bolster the capacity of your existing accounting team.
Value Bombs from the Podcast
- The core difference in US accounting practice are the complex system of rules according to US GAAP standards vs. the streamlined IFRS principles overseas.
- All 50 states have different reporting deadlines and requirements when it comes to income, sales and property taxes.
- Starting a business in the US can be challenging from a compliance perspective—according to the World Bank the US ranks 55 of 190 nations in ease of starting a business.
Resources Mentioned in the Podcast
Working with Americans: How to Build Profitable Business Relationships
By: Allyson Stewart-Allen and Lanie Denslow
-Our listeners can order the book and claim a 20% discount with the code “WWA20” at http://bit.ly/WWA-order-Routledge. Note the code expires on 31 December 2020.
Support for America Made Easy comes from Newable Avitus the Transatlantic Joint Venture supporting ambitious SMEs with setting up in the United States. We help make entrepreneurs lives easier by providing an operational solution for their US expansion strategies so that they can focus on driving revenue and doing what they got into business to do in the first place.
Newable – On your side in the UK
Newable helps companies thrive by providing the essential resources they need to take the next step with their business by offering financing, premises and professional support. Newable works with 22,500 businesses a year at the heart of the UK economy, helping people start, scale and sustain their enterprises. Newable’s purpose is to achieve profit and social impact in equal measure.
Avitus – On your side in the US
For over 20 years, Avitus Group has provided business administration services for more than 3,000 companies in the US. Avitus Group’s Business Solutions includes a suite of specialist services designed to help clients simplify, strengthen and grow their business. From planning your entry into the US market to helping you sustain your business, Avitus offers the combination of customised and comprehensive support you need.