Expanding into the United States (U.S.) market offers exciting growth opportunities, especially for businesses with international shareholders. However, it also comes with a set of challenges. For companies new to the U.S., managing these complexities can feel overwhelming. Common hurdles include:
- Navigating intricate tax regulations
- Staying on top of tax return deadlines
- Understanding financial reporting standards
- Managing international transactions and related reporting
- Adhering to U.S. payroll regulations
Outsourcing your accounting can help relieve these burdens by providing expert guidance and ensuring full compliance. This allows you to focus on establishing your presence and growing your market in the U.S., while leaving the complexities of the financial system to professionals.
Not All U.S. CPAs Can Support Foreign Subsidiaries
It’s important to note that not all U.S. Certified Public Accountants (CPAs) are equipped to support foreign-owned U.S. companies. Partnering with a firm that specializes in Client Accounting Services (CAS) can be highly beneficial, as they understand the specific accounting and reporting needs of international businesses. Ideally, you want a CPA firm experienced in the accounting and reporting standards that will impact your U.S. company.
A firm offering international tax compliance and planning—both federal and state—along with core bookkeeping and accounting services, ensures that all financial aspects are aligned and considered together.
CPAs who work with foreign-owned entities are also well-versed in the strict closing and reporting requirements for group consolidation. They work closely with foreign shareholders to ensure timely deliverables while educating them on U.S. regulations.
How Outsourcing Can Streamline Your Expansion
Outsourcing your accounting services can streamline your expansion into the U.S. market and position your business for success.
Download our guide: “10 Reasons Why You Should Outsource Your Bookkeeping and Accounting Functions.”
Key Financial Challenges
International companies often face several key financial challenges when entering the U.S. market, including:
- Understanding U.S. tax laws
- Navigating accounting and payroll regulations
- Managing complex regulatory environments
- Complying with foreign reporting requirements and group reporting
- Handling revenue recognition, nexus, and multi-currency transactions
Outsourced accounting firms provide expertise in U.S. accounting regulations tailored financial strategies, and ensure compliance with federal and state laws, mitigating these challenges.
Specific Financial Reporting Standards and Practices
Foreign companies must comply with U.S. Generally Accepted Accounting Principles (GAAP), which may differ significantly from their home country’s standards. Outsourced accounting services ensure all financial statements and reports are prepared in accordance with these standards.
Streamlining the Financial Integration Process
Outsourced accounting firms are skilled at overseeing the financial integration process, including managing cross-border transactions, currency conversions, and financial consolidation. This helps streamline operations, reduce errors, and ensure compliance with U.S. laws, allowing you to expand with confidence, knowing your financial systems are robust and compliant.
Other Considerations
Expanding into the U.S. also requires establishing various other professional relationships—banking, legal, insurance, payroll, and employee benefits, among others. Partnering with a knowledgeable CPA firm that takes a full-service approach can help you connect with the right professionals to ensure your business remains compliant and secure for future growth.
Why Outsource Your Company’s Management Accounting?
- Save Money: Outsourcing allows for scalable solutions that fit your business without the need to hire additional full-time or part-time employees. This helps reduce recruitment, salary, benefits, supervisory, and training costs.
- Timely Reporting: Outsourced teams are often staffed with financially focused, objective bookkeepers and accountants—including CPAs—who can provide real-time data for better decision-making, key performance indicators (KPIs), benchmarking, and trend analysis.
- Reduced Risk: Standardized external processes and quality reviews strengthen independence and separation of duties, minimizing the risk of internal errors or fraud.
- Support: Outsourcing can include the services of a Chief Financial Officer (CFO) or Controller without the salary costs, giving you access to expert analysis and strategic planning.
- 24/7 Access: Our team includes QuickBooks ProAdvisors who can recommend the right applications to enhance your accounting processes. If you outgrow QuickBooks or use custom software, we have the experience to integrate and consolidate your financial operations.
How We Can Help
In addition to helping register your foreign corporation in the U.S., our team can manage your monthly and year-end accounting, reporting, and provide strategic financial management advisory services. We offer customized, scalable solutions—whether it’s preparing customer invoices, remitting vendor payments, or supporting your U.S. employees and payroll.
At LGA CPAs, we help businesses focus on growth, strategy, management, and compliance. We can either augment your existing team or take over the entire accounting function—our customized approach ensures a solution tailored to your needs. Contact us today to learn how we can support your journey towards expansion with streamlined financial management and strategic success.
