Financial outsourcing in the BRICS: Nexia International special report
Monday, 06 August 2012
30 July 2012
Economic gloom in much of the world has led many businesses to look increasingly to the fast-growing BRICS (Brazil, Russia, India, China and South Africa) economies for growth. Operating in a BRICS country can mean dealing with complicated and unfamiliar tax and financial legislation, and bring governance challenges for the parent company.
To help meet these challenges, many businesses may look to local firms to provide services such as payroll, bookkeeping or management accounting or to deal with the local tax authorities. Other more specialist outsourced functions include VAT returns, pensions administration, expat tax services, transaction processing and even internal audit and risk management.
A new special report by Nexia International looks at the benefits of outsourcing the finance function for businesses expanding into the BRICS. It is based on the views and experience of Nexia International member firms operating in the relevant countries.
The report looks at the benefit of the outsourcing model in allowing the BRICS-based start-up or subsidiary to focus on key issues in its core business without the need to involve management in local accounting or tax issues. Through outsourcing, companies can avoid the hassle and expense of recruiting staff and setting up and upgrading systems and software locally.
Beyond the obvious benefits, the report’s authors explain that there are important issues of control and business support that a good partner can bring through a combination of robust reporting platforms and relevant local knowledge. A key driver is quality and timeliness of management information. This should allow the business to be more agile and to focus on important business issues.
Companies venturing overseas for the first time are often unprepared for the cultural differences they encounter. Working with the right local service provider can help them deal with an unfamiliar regulatory environment as well as bridge the cultural divide.
Nexia International’s special report on financial outsourcing in the BRICS is available at www.nexia.com
For further information, contact:
Tel: +44 20 7436 1114
PR enquiries:Steve Smith
Tel: +44 20 7096 5026
Note to editors:
Nexia International is a leading global network of independent accounting and consulting firms with more than 570 offices in over 105 countries, providing a comprehensive portfolio of assurance, tax and advisory services.
With a substantial presence in the world’s major financial and economic centres, Nexia is strategically positioned to serve the diverse international requirements of our clients, ranging from globally listed entities and international subsidiaries, to owner-managed businesses and high-net-worth individuals.
Nexia member firms had combined global fee income of US$2.33bn in 2011 and Nexia was ranked the 11th largest international network by revenue in the latest International Accounting Bulletin World Survey (2011).