Beyond our borders: international business and Ohio.

• Author: Cytron, Scott H.

The global marketplace is much more than an idea or buzzword. It's here and growing, and anyone who thinks a company is not involved in some aspect of international trade is behind the times. In today's always-on, worldwide economy, Ohio is making a concerted push to increase business in the state. This effort is seen in various initiatives, including the Third Frontier program and state business tax reforms enacted in 2005. International trade is another growth area, with NAFTA providing a noticeable impact.

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According to the Origin of Movement State Export Series, Bureau of the Census, Ohio's export shipments of merchandise were $31.2 billion in 2004, the sixth-largest export total of all 50 states, and even though the state exported to 205 foreign destinations, NAFTA trading partners accounted for more than half of all exports. Canada led by a wide margin with $15.5 billion in exports from Ohio, while Mexico followed with $2.4 billion in exports. Although NAFTA partners led the way, other top markets include the United Kingdom (UK), Germany, China, France, the Netherlands, Australia and Brazil.

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With international exports and the global economy working in tandem, it's time for accounting professionals to realize current and future opportunities to work internationally.

Approaching international trade

"CPAs need to be proactive and involved early in the evaluations and efforts of their organizations in international trade," says Gary L. Sandefur, CPA, director of Accounting for R.G. Barry Corporation and a member of the Catalyst Editorial Advisory Board.

Based in Pickerington, Ohio, R.G. Barry markets and sells comfort/slipper footwear (Dearfoams is one of its popular lines) with annual sales in excess of $100 million. Its products are sourced via suppliers primarily located in Asia, and it has a separate, wholly owned manufacturing and wholesale subsidiary in France. Historically R.G. Barry has had manufacturing operations in the United States, Mexico, China and France, with sales/distribution branch operations in the United States, Mexico, France and the UK.

A CPA's "comfort zone" tends to be focused on the United States vs. the international environment, says Sandefur. He believes this mentality can lead the CPA to react after the fact to the consequences of company decisions. With international operations involving a number of issues impacting business, he offers a short checklist of areas in which a CPA can become involved:

* Strategic direction on supporting structure and approach used by the company

* Foreign currency risks

* Financial reporting on foreign operations and multi-currency activities

* Import/export customs requirements and costs

* Logistical freight movement and management

* Legal...