When a company starts importing/exporting, it may be faced with issues such as foreign
party credit-check and foreign currency exchange exposure if the transaction is denominated
in a foreign currency. Most companies in these situations will get outside help from either
banks or an international accounting firm. Developing an in-house international accounting,
capability becomes more important if the company’s involvement in international business
increases. For example, if a company decides to establish a foreign subsidiary, it must meet
local accounting and reporting requirements specified by the foreign government, develop
and implement an information system to monitor, evaluate, and control the performance
of the foreign subsidiary, and develop protocols and system capabilities to consolidate
the financial results of the foreign subsidiary with those of the parent. Thus, the need for
international features in accounting software may vary among firms with different levels of
internationalization.