5 most common accounting software problems in international companies

International companies often deal with a lot of issues related to obligations towards the state and shareholders. We have therefore focused on the topics that most often concern our customers operating in several countries at the same time these days (references here). Here is a list of five of their most common problems:

Problem 1: The high cost of keeping the system in line with each country's legislation

Each country has its own specific laws and obligations that companies doing business there must comply with. Monitoring changes in legislation and their implementation into the system often requires considerable resources, both from the financial accounting department and the IT department or accounting software supplier. And what about dealing with major changes such as the Electronic Sales Register (EET)?

Bad software is more trouble than good.

Our EET solution for Dynamics AX can be purchased as Addon for Dynamics AX and Dynamics 365 on our Dynamics Addons and Apps store - Addons.Blue.

Problem No.2: VAT complications - different in each country

VAT is every accountant's nightmare. Each country typically has a different filing period, VAT returns are filed in a different format in each country and in some countries special reports must be filed, for example the Control Report.

Problem 3: Outdated information for decision-making

We often see that the data between the subsidiaries and the parent is not available online, and quite often not on a daily basis. It is not uncommon for data to be exchanged on a monthly basis, for example, so the basis for strategic decisions by the company's management is old.

Problem 4: Laborious reporting and consolidation

All reporting that takes place over more than one country involves extensive preparations. Piecing multiple sheets/documents together in excel, at best importing into a data warehouse. When the data for all companies is ready to report, all accounts still need to be converted to common numbering, as the numbering of expenses, revenues and other categories is different in each country. Even nowadays, we still encounter accounting software in which it is not possible to keep accounts according to the local accounting circuit and international accounting standards (IFRS, US GAAP) at the same time.

Even today, we still encounter accounting software in which it is not possible to keep accounting according to the local accounting circuit and international accounting standards (IFRS, US GAAP) at the same time.

Issue 5: Laborious compliance with EU obligations

Companies doing business within the EU have a number of other obligations to fulfil: submission of the Intrastat report, the ESL Summary Report. In the case of VAT registration in other EU countries, also the VAT return in that country. The compilation of these documents is often a stressful last-minute manual task under the threat of a fine.

Are you familiar with these problems? If your current accounting software is causing any of the above problems, get in touch with us, we will be happy to help you with the solution.

Filip Rozsíval is a Senior AX Consultant at Blue Dynamic.