By: Elizabeth Galewski

Global businesses face unique challenges when navigating complex financial landscapes. According to Alyssa Herrera, Senior Director of Accounts Receivable at Cyberbacker, a leading global provider of virtual assistants, international businesses must tailor their approaches to varying regulatory frameworks and time zones as well as differing cultural expectations. “Nearly every aspect of the business is affected,” she says.

Herrera has years of experience implementing innovative billing solutions on an international scale. Here, she shares her practices for doing business in diverse global markets.

Practices for navigating international finances

According to Herrera, establishing clear communication channels and transparent processes is the first step to doing business internationally. “Today’s technology enables real-time collaboration,” she explains, referring to cloud-based project management tools and video conferencing platforms. “No matter where you are in the world, you can open up a video call and feel like you’re in the same room.”

Secondly, Herrera emphasizes the importance of adaptability and flexibility. “In a global setting, economic conditions and market dynamics can vary greatly across different time zones,” she says. “Businesses must constantly assess and adjust their financial plans accordingly.”

Furthermore, Herrera recommends investing in robust risk management systems. “Complex financial environments often involve uncertainties that can impact the bottom line,” she says. “To mitigate threats, it often helps to not only maintain cash reserves but also to work closely with your insurance agent to keep your policies updated.”

Another  practice involves automating and streamlining financial processes as much as possible. This not only improves efficiency but also reduces errors. 

“Automated invoicing systems and digital payment platforms minimize manual interventions and ensure a seamless workflow no matter what time it is,” says Herrera. “These systems also increase the reliability of the data and allow for quicker analysis, placing decision making on a firm empirical basis and speeding up its process.”

Practices for ensuring international compliance

Different countries have different laws, which can make compliance tricky. According to Herrera, businesses must prioritize staying on top of changing regulations for each country they operate in. “In court, pleading ignorance will get you nowhere,” she points out. “In particular, it’s important to understand tax laws, labor regulations, data protection rules, and any regulations that are specific to your industry.” 

In addition, Herrera highlights the importance of establishing a strong compliance culture. “Everyone on the team needs to value and demonstrate integrity,” she says. “People at all levels need to take accountability. This kind of company culture maximizes the chances that team members will alert the rest of the organization about regulatory changes. It also minimizes breaches and builds trust with customers, as well as business partners.”

For businesses that don’t have international legal experts on staff, she recommends partnering with expert compliance consultants. “These partners can provide valuable guidance, help resolve disputes, and even conduct internal audits to identify areas for improvement,” Herrera says.

Herrera explains that cutting-edge technology can also help ensure compliance. “Today’s AI-based systems can monitor key data points, track changes in the regulations, propose adjustments, and streamline reporting to authorities,” she says. “At the same time, they aren’t vulnerable to the kinds of mistakes humans would make.”

Finally, Herrera suggests establishing close working relationships with local authorities and members of industry associations. “This can greatly facilitate compliance in foreign markets,” she explains. “When you have these connections, you can learn about pending regulations before they happen, which enables you to plan for them proactively. You can also show your commitment to compliance, which helps create a favorable environment.”

Practices for culturally appropriate customer service

Cultural understanding is vital for international businesses. “It’s hard to do business effectively in places where you don’t understand the people,” Herrera explains. “What do consumers in that market actually need from an enterprise like yours? Don’t assume it will be the same as elsewhere. Just because a certain approach might work well in one context doesn’t mean it will necessarily translate to another.”

According to Herrera, businesses can appeal to the values and preferences of consumers in different regions by doing their homework. “You will need to conduct market research, collect feedback from customers, and analyze their patterns of behavior,” she says. “In particular, treat any negative feedback like gold. When people give you the gift of negative feedback, it saves you a lot of time because you immediately know what you have to fix.”

Herrera also advises hiring local talent or establishing partnerships with local organizations. “They already know a lot about what you need to learn,” she explains. “The important thing is not only to build relationships with people but also to believe what they say and make actual changes according to their recommendations. For instance, if you have a new product or service coming out, it’s a great time to invite their input and make revisions as needed.”

Another key strategy is to provide multilingual support so that all customers feel included. What’s more, language should be considered when developing marketing strategies. 

“Your messaging needs to be in the language that will generate the most trust among your target audience,” Herrera says. “Many places have more than one official language, but each has its own connotations among the local population, so you want to make sure those connotations align with your brand.”

Finally, global businesses should invest in cross-cultural training for their employees. “This helps reduce unnecessary conflicts,” Herrera says. “Miscommunication and misunderstanding can easily cause problems due to cultural differences. That’s why it’s best to develop staff members’ cultural intelligence as much as possible.”

Assure your business’s success worldwide

Optimal business operations across diverse cultural contexts require businesses to navigate sophisticated financial systems, adapt to complex regulatory expectations, and respect customers’ cultural preferences. By implementing the above strategies, companies can ensure their success in global business.

Published by: Holy Minoza