When you are running a small business, you need to know how to handle international clients. International business is more difficult than dealing with someone around the corner because you must deal with exchange rates, taxes, and communication. Use the tips below to manage your business and clients properly. You can make more money if you have loyal international clients, and you should be careful when managing these accounts.
Do You Know The Exchange Rates?
You need to know the exchange rates so that you understand how much money you will make from each sale. You need to know how much money your clients should send for each purchase, and you need to check the exchange rates at the exact moment every purchase is made.
You can send money to your overseas offices to help manage the business, and you need to know the exchange rate you will get when you choose your transfer company. Also, you need to check the fees you will pay when money is sent.
Do You Know How To Handle Shipping?
You need to choose a shipping partner that can handle international shipping to any country. You need to know how much it costs to ship to these countries, and you should relay these prices to your customers. If you use your domestic rates, you will lose money every time you ship to your international clients.
Do You Communicate Effectively?
You need an office phone system that allows you to place overseas calls. You can use a VoIP system that makes the calls clearer, or you could use a video conferencing program that helps you talk to your customers face-to-face.
If you do not speak the native language, you need to find someone in your office who can. In case your client is happy to speak English, you should talk with them so that you can understand each other better.
Additionally, you may want to hire a translator to write up official documents in the appropriate language. You can avoid any confusion when working with your clients, and you may also want to hire an attorney to look over these contracts before they are sent.
What Is Your Tax Liability?
You need to know if you must collect taxes from international clients. You can ask your accountant to check on the rules for each country where you do business, and you can add those taxes to each new invoice.
You may get special tax breaks for working with certain countries, or you may save money on your tax return because you can deduct travel expenses or work expenses tied to your international client.
Do You Know How To Handle Customs Fees?
When you are sending products to international clients, you need to know how much you will spend in customs fees. If you are receiving products from an international client, you need to understand how much you will pay in tariffs when the products arrive. Companies that do not calculate their fees and taxes will lose money on every transaction.
Managing international clients is easier if you understand how to communicate, which country you are dealing with, and all the extra expenses that are tied to these clients. Check the exchange rates for the countries where you do business, and account for those exchange rates when you set prices for your customers. You should find the appropriate shipping partner, calculate your customs fees, and work with your accountant to find any special tax breaks. You must take care of everything so that your international customers have a good experience.