7 tips for foreign companies with regional offices in Russia and the CIS

7 tips for foreign companies with regional offices in Russia and the CIS

In the current era of globalisation, the geographical boundaries between countries are dissolving for those companies pursuing international expansion. Nowadays even medium-sized businesses can launch an office abroad, however, these are often managed remotely.

Obviously this comes hand in hand with a number of obstacles and challenges for IT systems, such as comprehensive enterprise management, an increase in operational tasks, operational comfort for end users, and compliance with both local legislation and parent company corporate standards.

For growing companies in Russia and the CIS there is now a range of popular solutions avilable developed on the 1C: Enterprise 8 framework.

We invite you to consider the main 7 challenges of controlling your business remotely in Russia and the CIS, and how to overcome them using 1C: Enterprise 8 -basic solutions.

7 challenges of remote business management and how to overcome them using 1C: Enterprise 8

 

    • 1. Source accounting documents and reports that don’t comply with local legislation.

      A regional manager isn’t always able to get to grips with the minutiae of local legislation under stringent time constraints. Using the head office corporate IT system with its existing EU printouts and accounting rules in a regional Russian office, managers may not be certain that they’re complying with local requirements under Russian legislation. This means that the deployment of original Western IT solutions for automation in a regional office generally throws up problems because it does not comply with local accounting requirements. And so these systems tend to necessitate expensive, time-consuming adjustments. How can you avoid such problems?

      A reliable way to quickly automate the activities of a regional office in full compliance with local legislation without wasting time examining the details, would be to implement a standard accounting solution for your local market. In Russia and the CIS, software programs based on 1C: Enterprise 8 bring you just this solution.

      Using ready-made 1C software you don’t have to spend time and money customising your IT system to require with local legislation: the vendor (1C company) garantees the compliance of all documents, printed forms and reports prepared in the system with Russian law and accounting rules.

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      Moreover, it’s far easier for staff at a regional office to work using a Russian accounting system, since The hybrid deployment 1C: Enterprise 8 model is the national standard, which most of the tax and financial experts are accustomed to.

      1C products free businesses from the hassle of ensuring corporate accounting system compliance with local requirements, and reduces the costs of external tax and accountancy consultants and legal advisers (in comparison with using Western IT systems for local accounting) and the high expense of non-Russian software customization.

       

  • 2. Managing remote employees effectively.

    Managing a business remotely always brings the attendant problem of a significant reduction in control over regional office staff. This is why managers look to modern technologies to help monitor remote employees at work. For example, not 10 years ago remote videoinspection was very popular. However, interest has moved to task-tracking and KPI systems, which, to a large extent, help managers overcome the difficulties of monitoring remote staff. What handy functions to do this will you find in 1C:Enterprise 8-based solutions?

    Even at the early stages of a regional office or a new project launch, employee task management can be organised with a free task-tracking system (1C-Bitrix), which is integrated with 1C: Enterprise 8 solutions for fiscal accounting. It allows managers to monitor the timely execution of tasks in subdivisions and helps staff to avoid making mistakes. You can delegate a task to a specific employee in 1C-Bitrix, with just a single click, on a PC or any mobile device.

    If required, the more comprehensive project accounting module 1C: Project Office Management (1C: POM) can be used. The deadlines and content of planned tasks, time and other resource expenditures are taken into account for each project as it is executed. It is possible to control budget and cash flows both for a specific project and all the projects run by any company, simultaneously.The task management system integrates with documents and calendars, and also lets you generate primary accounting documents

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    and control payments from customers (AR) and to suppliers (AP) as well as to employees.

    Integrated solutions, developed on 1C: Enterprise 8, also lets you manage your company’s performance using a key performance indicators (KPIs) system. This system allows you to select the optimum set of indicators to estimate the performance both of individual employees and the whole enterprise. Coordination of departmental activities, regular feedback and staff incentive is realised via the KPI system. Moreover, 1C software lets you regularly monitor business operations in a regional office, and identify and report on critically important information gained from actual KPI data.

    These opportunities make it easier for managers to control employees’ work permanently and allow them to monitor the progress of tasks executed online, without a physical presence in a regional office.

     

  • 3. Different time zones and slow information exchange.

    The cooperative working time between employees in a head office and a regional office is significantly reduced in different time zones. Furthermore, the bigger the UTC time offset, the lower the speed of information exchange. This issue is even more topical for those managers who in virtue of their business are regularly on the move, or who have to wait for periodic reported data collection and provision. What opportunities do solutions based on 1C:Enterprise 8 give to mobile managers, on the move in different time zones?

    The hybrid deployment 1C: Enterprise 8 model provides flexible, comfortable mechanisms for working with applications on desktop computer and mobile devices (tablets, smartphones) online. Depending on your circumstances, the 1C system can be installed on your premises (on a server) or hosted in a data-centre using a virtual server (cloud service). Using a cloud service you can run the system in either thin or web client mode. In the latter case one of the popular browsers, access to the Internet and a password are all that’s required for reliable, secure access to a 1C database.

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    The cloud service makes it possible for employees from different offices to work together in a single system. Due to this deployment model managers can work with data in the cloud without necessitating an employee presence in a regional office (for example 1C system administrator). The cloud-hosted system is available 24/7, eliminating the time zone problem.

  • 4. Difficulties working with local Russian-language software.

    A local accounting system ensures compliance with Russian legislation and is normal for local staff. However, working with a local Russian-language information system is virtually impossible for non Russian-speaking managers. Because of this, managers lose their deep control over workflow and become dependent on extra staff to prepare and translate managerial reports for them. What is implemented in 1C:Enterprise 8 to help managers solve this problem?

    For example, built-in internationalisation mechanisms in 1C: Enterprise 8 let us develop an additional the ability to fully integrate it with other systems and programs software package. This alows foreign managers to work directly within the information system of a regional office, generating and scanning data for themselves, without having to wait for a bilingual employee to prepare and present it. And with the help of the report-building mechanisms actualised in 1C: Enterprise 8, regional managers can get detailed reports at any time and can control the selections, groups and details in the reports that they generate.

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    We’re sure that you’ll be surprised at how many useful report forms are included with the standard 1C: Enterprise 8 solutions.

    Just imagine analysing sales, billing and stock reports, thoroughly understanding every detail, without the need to distract an employee to explain the data to you all the time!

  • 5. Duplicate information in different IT systems.

    No matter how good either of your IT systems is, Western or local, in practice they both have to be used together: a local system covers local accounting and tax reporting, and the corporate system at your head office integrates regional office activitiies with standard company processes. This means that management has to think about effefctive, error-free duplication, and reconcile the same information in both systems or sacrifice one of them. But why would you do this, if there are benefits from using both systems?

    One of the advantages of 1C: Enterprise 8 is the ability to fully integrate it with other systems and programs using a wide variety of supported technologies and framework methodologies. The 1C: Enterprise 8 framework is open, letting you select and implement the most convenient mechanism of integration, from simple data sharing via tables or flat files to modern web services. Due to the flexibility and simplicity on the part of 1C: Enterprise 8, data exchange rules can be set up rapidly, and there’s

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    no need to modify basic tax accounting logic and functions. All this garantees lower data input costs and exchange mechanism support with the absolute certainty that all the important functionality changes in the 1C software will be quickly installed, without any exchange mechanism dysfunctions.

  • 6. Using business data in different languages.

    Covering new markets can demand the prompt transfer of all the reference information used in the corporate accounting system to new languages. Product names, customer data and delivery addresses should all be visible in your IT system in both the standard language for corporate communications and the local language, which needs to be executed in primary documents. How does 1C:Enterprise 8 let you solve this riddle?

    In addition to the English user interface, as part of our service to foreign customers, we offer a simple customisation of the common Russian 1C-based products, allowing them to be configured for multiple languages and letting you organise the input and storage of all your business data translations. Then it adaptively displays the same business information in the user’s language or in the language that the company uses to communicate with a customer. This function saves the company from costly corporate

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    system changes and lets you get the work of a new regional office up and running quickly by simply adding a new language in the 1C program after the dictionaries and business data have been translated.

  • 7. The complexity of coordinating head and regional office processes.

    Employees both at headquarters and a subsidiary Russian office often have to execute a specific chain of interrelated tasks within a single project. To coordinate this process without the support of an accounting system is quite difficult, leading to an increase in project lead times, confusion performing tasks and crossover of employee responsibilities. Can 1C: Enterprise 8 integrate all your employees into a singe efficient team to overcome this?

    The business processes mechanisms in 1C: Enterprise 8 let you formalise workflows and coordinate and control employee activities within the application. The system itself gives cues to users as to what tasks they need to carry out, within what timescales. Managers can then simply concentrate on the analysis of any occurring deviations and errors, which are made clearly visible by the system.

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What 1C: Enterprise 8 system is best suited to tackle all the challenges listed above?

 

 

One of the leading applications for handling remote business management is the comprehensive 1C: ERP 2 solution, based on 1C: Enterprise 8, which can meet all the fiscal and managerial accounting needs of any enterprise:

      ●    Finances and budgeting. 1C: ERP 2 offers flexible tools for bookkeeping, generating payment documents and financial reports, preparing a range of budgets, and KPI monitoring.

      ●    Regulated accounting. 1C: ERP 2 contains all the necessary tools to automate accounting and tax accounting, including preparing statutory reports. The solution also supports corporate accounting where separate business units are assigned separate balance sheets or not assigned at all.

      ●    Cost accounting. 1C: ERP 2 lets you keep cost accounting by different business activity types separate, to separate item-related costs from other costs and to calculate the overhead costs of goods using various methods.

      ●    Payroll and human resource management. 1C: ERP 2 gives you modern tools for automated HR records and payroll and related tax calculations. Additionally, the system lets you plan workloads and utilise human resources as well as control different KPIs for personnel.

      ●    Production management. 1C: ERP 2 automates interdepartmental management, operational scheduling, job creation and monitoring, including APS and MES level of automation.

      ●    CRM. 1C: ERP 2 allows you to regulate employee interaction with customers, store customer and partner profiles, create customer loyalty programs and automate claims handling.

      ●    Sales management. 1C: ERP 2 facilitates advanced opportunities for customer order management, with individual or typical sales rules. It also generates price lists, which include information on stock levels, and predict sales.

      ●    Procurement. With 1C: ERP 2 a user can control item requirements (MRP), run advanced analyses of suppliers by price and supply conditions and manage all other procurement activities.

      ●    Warehouse and inventory management. The comprehensive warehouse management system lets you use storage spaces efficiently, control loading levels, optimise warehouse staff performance, keep a commodity calendar, forecast demand and manage deliveries.

      ●    Repairs. 1C: ERP 2 allows you to monitor the condition of equipment, generate repair schedules and schedule production according to them.

The flagship 1C: ERP 2 solution is an indispensable tool for foreign companies running their business in Russia and the CIS, which allows them to minimise the risks of remote management.

A study conducted by Smart ERP Projects LLC shows that companies using 1C: ERP 2 accelerate information exchange and increase the speed of customer service by 30-50%. At the same time, the solution reduces accountancy labour costs by 30% and operating costs by 11%. For regional managers, running an enterprise remotely, an important point in favour of 1C: ERP 2 may be the fact that the solution generates business reports 3-4 times faster than without the system, letting your management feel the pulse of the company, even from outside Russia or the CIS.

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1C official partner Smart ERP Projects LLC offers our customers implementations of 1C: ERP 2 with an English user interface, making it accessible to English-speaking users. To find out more about 1C: ERP 2 with the English language pack, please visit our website.

 


 

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