Businesses that successfully expand overseas typically achieve the best results when they work with a relocation provider. There are a number of organizations that specialize in helping companies expand internationally.
The right relocation provider can easily improve the global expansion process. There are different types of global relocation providers that each focus on a specific sub-genre of global expansion. These focuses include accounting, global mobility, entity support, payroll providers, and professional employer organizations or PEO.
Relocation Providers Help with Accounting Services
Over the past 20 years, the global financial landscape has undergone a transformation thanks to dramatic changes in business and political climates. With the increase of global competition, more market-based economies, and new technology, globalization is becoming the norm.
Given the dynamics, it’s important for companies to know the differences between accounting practices in the U.S. and in their global operations. These two areas are treated very differently. Each country varies in regards to accounting principles and standards. When you’re working with a relocation provider to help with accounting, make sure they have experience specific to your target country.
Navigating Global Mobility
Technology isn’t only impacting accounting principles, it’s also impacting the way people communicate. As a result, more and more employees have come to expect international businesses to practice global mobility.
As global mobility grows in popularity, it opens opportunities for employees and employers alike. Employees have the chance to boost personal growth with a unique career development. Employers, on the other hand, have the chance to increase availability for international assignments to attract diverse talent.
You can quickly and affordably establish a legal presence in-country by using an Employer of Record (EOR) service. This agile option allows you to expand globally without the hassle and become a multinational organization in no time.
International PEO as a Relocation Provider
One of the most effective forms of entity support during global expansion is through an International PEO. This Employer of Record solution is a third-party service that hires your employees in your target country without establishing a foreign corporate entity. The International PEO company assumes all responsibilities related to that employment including monthly withholdings, income tax, social security contributions, and assist with work permits and supplemental insurance. Other Benefits of using this type of relocation provider include:
International Payroll: When to Choose a Provider
When you’re expanding overseas, one of the most important things to consider is compliance requirements. This is especially important when it comes to payroll. In each market, there are different withholding and benefit regulations that companies must abide by when they enter the market.
We highly suggest outsourcing payroll to an international payroll expert. Plenty of domestic companies outsource their payroll services because of the complexities in the United States. Don’t take a chance trying to navigate a foreign market on your own. There’s a lot of information to handle and if you get it wrong, your company will be subject to fines and penalties.
Tips for Selecting a Relocation Provider
When you’re getting ready to choose a partner to help with your global expansion plans, prepare a list of questions that you need to be answered. Ask these questions to each provider and compare answers to see which is more in line with your goals.
In addition, look for a company with:
- Years of relevant in-house experience
- Positive reviews and references
- Extensive network in your target country
Velocity Global is the leader in global expansion and can assist your company as a trusted relocation provider through both International PEO and International Payroll. Contact our team to learn more!