Empowering Global & Finance Departments.

• Author: Wolfendale, Mark
• Position: International Accounting

Dismantling global trade barriers and expanding Web-related technologies have sparked new approaches to managing financials, enabling senior financial executives to build systems to expand into remote areas of the world without sacrificing performance or credibility.

International companies have traditionally localized accounting policies based on regional office needs. They implement hardware and software as needed, and employ the necessary amount of both information technology and accounting professionals to keep everything "running" smoothly. The approach is expensive, bulky and incredibly difficult to implement. Yet, despite the flaws, companies, in general, have not invested the time and effort needed to develop more cost-effective strategies. But now things are changing.

The dismantling of global trade barriers and the expansion of Web-related technologies is having a positive impact on the business objectives of U.S.-based companies. In fact, they have sparked new approaches to managing financials, enabling strategic CFOs and senior financial executives to build systems that allow expansion into remote areas - such as Singapore, China, Africa and Russia - without sacrificing performance or credibility.

This is possible with the emergence of new financial accounting and business management methodologies that are aimed at eliminating "accounting clutter" and helping Companies take advantage of global markets. One such method is a shared services strategy that allows companies - big or small -- to manage their international financial and business needs comprehensively and accurately.

Not only are organizations implementing shared services strategies to improve domestic productivity - they're also expanding implementations across multiple regions. Those running such models have found significant cost-savings. Indeed, research and advisory firm Gartner Inc. reports on cross-border collaboration show that, with the deployment of advanced telecommunication infrastructure in developing nations, it is easier to leverage global skills and resources without requiring the actual physical movement of labor.

Linking International Offices

International companies select shared services architectures for several reasons. Some need a package to act as a stand-alone enterprise resource planning (ERP) solution in their corporate headquarters, but not in the international operations. Others require a package that provides flexibility and in-depth reporting of ERP, but need it to work in conjunction with an existing ERP solution. Still others need a two-tier solution with global reach to fully manage their global operations.

No matter what scenario an organization selects, this approach essentially allows a business to create virtual shared services centers (SSCs) that enables it to process all financial...