IFRS stands for International Financial Reporting Standards and is essentially a guideline for doing business with countries throughout the world. Just like GAAP (Generally Accepted Accounting Principles) in the United States, IFRS lays out a series of principles and accounting standards – the only difference is that they aren’t enforced, and are merely suggestions for best practices. If that’s the case, why should you give a hoot about International Financial Reporting Standards, and why should you concern yourself with seeking a firm that’s versed in IFRS when you outsource accounting services? The reasons are aplenty.
Although it hasn’t happened yet, GAAP is in the process of being phased out in the United States. Although this process is a long and laborious one, when it eventually happens your company will be required to be in compliance with IFRS accounting standards.
If this isn’t enough to sell you on the importance of finding an accounting firm that knows how to adhere to IFRS accounting standards, it’s wise to consider the potential benefits of being ahead of the game, especially when it comes to your desire to grow your company to possibly do business in other countries. Consider the following.
- Adhering to IFRS makes your company much more attractive to foreign investors. At present time, if you’re not adhering to IFRS it makes it almost impossible for interested parties overseas to determine your company’s financial health, which can help them make decisions about whether or not to invest in you.
- IFRS adoption gives you a leg up if you want to expand your company to other countries. While this may be a far off notion for some small businesses, IFRS compliance can put you in the unique position of being able to jump at opportunities that might arise with no warning – like the chance to open up a satellite office in Paris, where trips to and fro will be a fully tax deductible expense. Tres bon, oui?
When you outsource accounting services to AccountingDepartment.com, you immediately gain access to experts who are not only versed in GAAP, but also in IFRS. All necessary accounting software and training is administered by AccountingDepartment.com, and you’ll even be provided with a scanner for use in emailing documents it would otherwise take days to mail. To find out more, visit AccountingDepartment.com today and request a consultation.
