International business is on the rise thanks to globalization. There are more multinational organizations than before. This has created a field in accounting known as international accounting. These are accountants responsible for harmonizing the different principles in individual countries. The multinational organizations need to understand tax principles or accounting laws in each of the country they venture. Even if local standards still apply, there are international standards that apply to all countries. Harmonization is required to ensure no laws are broken. This requires the firms to have an international accountant to perform the functions for them. Below are some of the functions,
This is the analysis and comparison of accounting rules and regulations in different countries. You will analyze the financial requirements in the subsidiary companies. Accounting rules are different in countries. You will need to understand both domestic and international accounting standards. The objective of this analysis is to detect the differences of accounting in each country. You will then advise the parent company on the necessary steps to take to harmonize its operations.
This is the auditing of financial systems. It is either internal or external. You audit the international tax planning statements domestically and internationally. There are different factors to consider in each of the countries the organization has the presence in. The internal auditor reviews the financial transactions and statements of the subsidiary. To do this audit, you use the accounting laws of that country. You then compare with that of the parent company to detect variations. For external auditor, you inspect auditing changes in various countries. You come up with audit reports to assist in decision-making for the organizations and the government. You check the conformity of agencies with the national or international set standards.
This is the analysis of tax transactions over a period. You will analyze and record transactions a CER given certain. Then you prepare financial statements and reports for that period. You are the accountant responsible for studying payments made in local or foreign currencies. You consider the exchange rates between countries; record the amounts to pay as well as the dates of payment. You will calculate loss or gains that exchange rates bring due to fluctuations. It is your job to review the financial reports of subsidiaries. You will have to consider the rules and regulations of each country. Using these reports, you will prepare a consolidated report for the parent company.
This is the preparation of tax returns according to Brian Dooley There are different taxation laws in various countries. The tax rates differ from one country to another. An international account is in charge of studying these tax differences. The accountant also analyzes the changes in tax. You will be in charge of preparing tax returns for the subsidiaries or the parent company