Many Turkish companies are actively involved in cross-border business operations. Such a business has some peculiarities, which makes it harder correctly account for all transactions. Today we will talk about factors to consider when choosing Business Management software and how 1C:Drive can be beneficial here.
Multi-currency transactions and product variants
In the case of cross-border sales, a business transaction may come in different currencies. And in only one business transaction there might be different VAT rates according to the products' types. There might be several branches in different countries, meaning that the company could pay and get money in various currencies.
If done wrong, poor multi-currency support in the accounting software may result in incorrect planning and, as a result, a negative ROI of transactions. 1C:Drive allows using General Ledger (GL) accounts that support transactions in multiple currencies.
This feature allows recording transactions with presentation currencies – and these currencies are reevaluated to reflect changes in exchange rates. This means you always have a correct understanding of contract ROI, which makes cross-border trading easier.
Also, goods that correspond to one article can have different names in different countries, making provisioning, distribution, and sales more complicated and prone to errors. To ensure a higher quality of business processes, it is crucial to connect business automation systems to a single database that supports product variants (i.e., you can create one product with multiple variants, e.g., names). 1C:Drive allows adding new product variants without the need to write a single line of code.
International vendors of accounting and business automation software often pay inadequate attention to the localization of their products. This means that their solutions are lacking the flexibility needed to be valid in the local markets.
Software localization goes far beyond just translating interface and content. For complex software solutions like accounting or ERP systems, the localization means performing an in-depth study of the local market and implementing features for things that can be met only there.
We here at 1Ci use this approach when designing our products for international markets. Turkey was no different. This market has its unique characteristics, especially related to financial management.
This means that the financial management software should have a perfectly localized interface, provide a flexible access model with multiple roles and user types, or the toll will be practically useless. We understand this and pay close attention to localization as it should be.
Working with multiple legal entities
Though the coronavirus pandemic made many countries to close their borders for some time, the globalization is still a trend that will continue to emerge after the global quarantine is over. Despite the limitations for individuals, goods exchange and delivery had never stopped even through a worldwide quarantine.
Several years ago, only big enterprises could be present in different markets. However, today the medium-sized company of around 100 employees can be physically located in 3-5 countries.
Such geographic distribution may be necessary for solving production, sales, and service tasks. And, of course, companies have to run multiple legal entities in different jurisdictions to manage their business processes. In such a situation, the company has not only correctly understood what goods, when, and where were sent, but track prices and transactions between controlled legal entities. These transactions may be in different currencies, and the costs of the same goods may be different for different customers, regions, etc.
Also, payroll and pricing policies are essential factors that should not be overlooked. On the business level, the management team should be able to view business metrics for all involved legal entities as well as an overall ROI in a single currency.
1C:Drive has a multi-company feature that allows solving all these tasks. The solution enables the creation of any number of legal entities to conduct business operations and track all transactions and overall profitability of business processes. This approach brings a better UI by providing to use more than one company in only one database without a need of creating separate databases for your each company.
Here is a real-life example of such a company — LabMarker sells medicine-related goods. The business operates in Turkey and Germany; the company uses 1C:Drive with Turkish interface in Turkey and with German interface in Germany to manage their legal entities in both countries. This means 1C:Drive also supports multi-language features.
Accounting and business automation software should be a growth factor for the business, especially in the current economic uncertainty. So, this is extremely important to choose a solution, that will enable business development, provide enough flexibility, and be tailored to the company's target markets.
We at 1Ci understand this very good, and are actively working on building contemporary, multilingual, scalable, affordable solutions for your business, which is fully compliant to the local regulations.