By Jay Dahal, co-founder of Machnet. Create your remittance and money transfer products.
As the world becomes increasingly interconnected, borderless finance becomes increasingly important. Today, individuals can live and work in different locations thanks to the rise of remote work. And finance without borders enables remote workers to manage their finances – to save, pay and store their money – wherever they are. With remote working becoming increasingly popular, many people are forced to book a flight to a position outside the confines of a four-wall office.
And as the era of digital nomads continues to grow, companies that hire remote workers can also feel the impact on productivity. Hiring digital nomads allows companies to diversify their backgrounds, culture, and skills, allowing more ideas to flow across departments. Opening your business to digital employees also means fewer employees traveling, which can mean big savings for your business and your employees!
Start doing your research.
Once you’ve decided to support employees around the world, be sure to prepare. Invest in the right equipment and make sure your remote work processes won’t hamper performance. Consider providing your employees with resources such as global pocket Wi-Fi or 5G SIM cards in various countries.
Every country has different policies regarding work and travel, but the good news is that governments are now starting to recognize the value that digital nomads bring. Some have even gone out of their way to create government laws that support digital nomads through flexible visas and programs specifically designed to attract remote workers, like the non-habitual resident program in Portugal, which offers tax breaks to remote workers, and e-Residency in Estonia. program, which allows entrepreneurs to run businesses independent of location. Other countries have also set up special visas or startup programs to attract digital nomads.
For business leaders and entrepreneurs looking to support more remote workers and prepare for the borderless financial revolution, here are some additional tips to make your experience more efficient and convenient.
Take a close look at your financial processes.
Are your current finance processes designed to support a global workforce? Have you standardized the processes enough to replicate them in your international chapters? A big thing to consider is the law and regulations.
Start by deciding which countries you will be hiring from so that you familiarize yourself with their local financial culture, compliance, exchange rates, and tax laws. Once you’ve decided on these, create standard financial procedures for payroll, reimbursements, allocation of allowances and more. I suggest starting by hiring a few employees globally and slowly working through those financial processes before opening jobs without borders. When your team feels confident and stable with their methods, then you are ready to hire more teammates around the world!
Consider global technology solutions.
A big consideration for hiring globally will be monthly expenses like payroll, allowances, and benefits. How are you going to automate this while taking into account all the legalities of cross-border payments? In 2023, many solutions are available to you. (Disclosure: My company provides a payroll solution.)
You can find a solution that meets your business needs if you know which countries you prefer. Look for payment platforms that support multiple currencies, can perform tax calculations, and comply with local regulations and labor laws. And depending on the size of your business and the number of employees worldwide, you may want to consider solutions with features like automated reconciliation, real-time currency conversion, access to foreign exchange markets, and… integration with HR and timekeeping systems.
Record your company’s recurring payments.
Your business administrative tasks can be a headache if you don’t maximize your digital options. A good first step here is to itemize all of your recurring payments across the board, such as payroll, business email payments, subscriptions, benefits, and more. Once you’ve listed that, it’s time to automate!
Many financial solutions already have features that allow you to mark items as recurring bills, so be sure to do so. By signing up for online bill payment services, you can avoid the hassle of writing checks and making payments over the phone or visiting bill websites or branches, avoid late fees, and be on the safe side. able to pay your bills from anywhere in the world as long as you have internet access. .
Plan the future of your business.
The future may seem uncertain, but planning for it is essential. Where will your business be heading in the next 10 years? Are you going to invest in your digital assets? Looking to expand to other countries? Do you envisage transnational collaborations?
Smoothing out your business plans will allow you to take the necessary steps to prepare for it. Create standard operating procedures that slowly guide your team through these important changes. Find the right people who are well equipped to help you achieve your goals and research technology solutions that could potentially support these changes in the future.
Look for financial institutions that support your business goals.
When researching financial institutions, I suggest looking for those that cater to businesses and people who live without borders. Look for ones that have an international presence and won’t charge you exorbitant fees for international transactions. Look for those who are obsessed with user experience and want to help you understand the costs you will incur with each transaction.
Consider those that have the features you deem essential, such as virtual wallets, virtual cards, mobile or online banking, bill payment features, and currency conversion. This allows you to manage your finances globally while transacting locally.
Finance without borders is becoming increasingly important as individuals seek to live remote lifestyles. Adapting to these changes may make it easier for you to transition to supporting employees around the world. And they won’t have to worry about being “stuck” in a country or having to work while on vacation. Happy employees are often productive and create opportunities that support their growth. Because by traveling and learning about different cultures, they will be able to spot opportunities that you might not even know about.
By planning ahead, you can take advantage of this change and run your business conveniently and seamlessly from anywhere in the world.