Our company is in the process of enterting the Canadian marketplace. Being a small company (sub $5m in revenue) and not sure how much traction we will get in the Canadian marketplace, I am looking for recommendations in setting up the
Any recommendations and advice will be greatly appreciated.
Rick
Selling in Canada and FX or separate entity
Answers
Canada and the US are closely linked enough that for our company ($13m in sales....maybe $1M in Canada) it wasn't necessary to have a Canadian entity nor to transact in $C; Canadian companies (and their banks) are quite adept at the "send USD" thing. Very, very different from Japan, for example.
It does depend entirely on your product. Big one time purchases of $50K plus, I wouldn't bother with the new entity. Smaller purchases (from individuals or smaller entities) could be more effectively approached using $C. Also, if you're going to be dealing with VAT/
The big caveat I see is the FX consolidations. Will your GL cope with that? It is painful if you don't have a good system to handle multiple companies...we kept on with
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Cash Management