5 Tips for Hiring International Tax Consultants

international tax consultants

What if your big push to expand your business internationally ended up in a huge failure?

This is actually more common than you think. In fact, companies that start selling abroad often have -1% ROI for up to five years after they expand. Those businesses require a full decade just to get a +1% ROI, and 60% of companies never make more than +3%.

There are many challenges to expanding your business to other countries. One of the biggest challenges, though, is navigating challenging tax issues across a number of different nations.

You can make this far easier for yourself by relying on good international tax consultants. Still not convinced? Keep reading to discover the best tips to help you hire an international tax consultant!

What Is an International Tax Consultant?

An international tax consultant is a tax specialist with extensive experience in international relations and laws. The consultant serves as a specialized CPA who can help you in ways that your average local CPA cannot.

By definition, most businesses don’t require someone well-versed in international tax consulting. If you are going to limit your business dealings to your own country, then an international specialist is not required.

If you’re planning to expand into one or more countries, though, use the tips below to hire the international tax consulting specialist that your business deserves.

Basic Tips For Hiring An International Tax Consultant

Even among international tax consultants, not all CPAs are created equal. If you want to get the most value for your money, you’re going to need to know what to look for before you make a hire.

For example, the CPA should know how to handle things like payments to foreign entities. They should have extensive international tax experience and be able to demonstrate mastery of different international compliance responsibilities.

Additionally, your CPA should have sufficient experience with the Foreign Account Tax Compliance Act and inbound foreign investment. Finally, while it is not mandatory, specific experience with the countries you intend to do business in is always a welcome bonus!

Now you know more about what an international tax consultant is and how to hire the right one. If you’re not sure whether your business needs international tax consulting, keep reading to discover further methods and more advanced tips to hire the right CPA who can help your international business thrive.

1. Find Someone Who Will Mitigate Your Risks

You don’t have to overthink the benefits of international tax consulting. In fact, the biggest benefit is the same benefit you get from hiring a local CPA: mitigating the different risks to your business.

For example, different countries have different tax deadlines. If you miss a filing deadline in Japan, you could end up paying at least 15% of the taxable income on top of paying other penalties!

When a tax consultant understands the different tax requirements of another country, you can avoid these risks. And you can give your business a better shot at making a profit when you expand abroad.

2. Hire Someone With Local Knowledge

Remember when we said hiring someone with specific experience in a country was a nice bonus? The main reason for this is that they can provide the local knowledge your business needs.

Some of this we have already covered, including knowledge of local taxes, rules, and regulations. This can help you streamline international operations at the time you need it the most.

In addition, the right tax consultants may be able to provide more info about the demographics and culture of the nations you are doing business in. This can help you fine-tune your sales and marketing methods rather than having to figure everything out from scratch. 

3. Get a Global Accountability Specialist

Global accountability should be very important to your business. As we noted before, most businesses struggle to expand to new countries. And even the businesses that find modest success often don’t make as much as they were hoping for.

Things get more complicated when you expand to multiple countries. Simply put, you now have to worry about accountability issues all around the globe.

The right consultant can help structure your entire operation within the context of both accountability and future expansions. It’s always better to have someone who can help you expand than scrambling to find help after the fact.

4. Find a Consultant Who Provides Company Synergy

“Company synergy” may feel like a tired buzzword by now. But make no mistake: synergy is the key to productivity and growth.

With an international CPA, there will be friction between your national and international operations. In addition to opening you up to potential liability issues, this friction can grind productivity to a halt.

A loss of productivity is always bad. But when it happens amid an international expansion, it can sink your profit margin for good.

You don’t have to worry about that when you have the right international consultant. Such a consultant can give you both the synergy and the peace of mind you are looking for.

5. Get Someone Who Generates Reports In Your Own Language

Sometimes, the best benefits of international tax consultants are also the simplest. For example, a good consultant will prepare the reports you need in a language you can read.

It’s easy to take this benefit for granted. But if you rely entirely on tax experts in another country, you may have trouble finding someone who (quite literally) speaks your language.

Reports in English will be easy for you and your entire team to read. And these reports can arm you with the information you need to make your international expansion a success!

Hire the Best International Tax Consultant Today!

Now you know why international tax consultants are so important to your business. But do you know where you can find the consultant your business really needs?

Here at International Tax Consultants, we specialize in helping businesses expand abroad. And we bring the specialized knowledge needed to make your international expansion succeed.

Ready to see what a difference our tax consultants can make? All you have to do is contact us today!

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