Foreign companies established in France: your accounting questions
Whether you’re a subsidiary, a branch or a liaison office of a foreign group, managers are quickly confronted with the need to comply with French accounting and tax rules, an essential step in ensuring the quality and compliance of international tax declarations.
French Gaap accounting: an essential process for companies based in France
There are a multitude of accounting standards (IFRS, US GAAP, etc.). It’s difficult to switch from one standard to another for the same company, between French and foreign requirements. So how do you get organized, knowing that there is also a strong link with the determination of taxable income? Our team of international tax experts can offer solutions to simplify this complex process.
Using the services of an international chartered accountant facilitates the application of the General Chart of Accounts (PCG) issued by the French Accounting Standards Authority (ANC). If your company’s size doesn’t allow you to hire such a professional, call on the services of a recognized accounting firm. That’s what they do best. It’s the guarantee of knowing the standards and regulations specific to your country, and of benefiting from comprehensive tax support.
Accounting queries from a foreign company established in France
Any CEO or CFO of a local company with foreign capital is looking for answers on how to keep the accounts of a company located in France, relying on the skills of our team of experts to ensure optimal tax management.
Frequently asked questions include
- What accounting standards apply to a French subsidiary of a foreign group?
- Does a branch have to keep French accounts?
- What are the accounting obligations of a liaison office in France?
- How do I switch from French Gaap to US Gaap?
- How do you manage invoice entry, dematerialization and archiving?
- Can we access accounting documents in the cloud?
- Does the accountant monitor aging balances and collections?
- Do your accounting tools include data visualization reporting?
- Can a member of the firm update the KPIs on our dashboards?
- In concrete terms, what is the French PCG? Where can I find the latest version? Is it compulsory?
- What is the FEC (fichier des écritures comptables) and what is its purpose?
These questions illustrate the complexity of the French accounting environment for foreign companies. At Expand CPA, we answer them in a clear and operational way, so that your teams can work in complete confidence and compliance.
Expand CPA, an international accounting firm at your disposal
Our accounting firm offers you a complete accounting and tax package for your French company. With a local accountant, you have a seasoned, trained professional whose knowledge is up to date thanks to our international network of experts.
Our services as an international chartered accountant
Expand CPA’s accountants take charge of all accounting operations throughout the year and at the end of the year, ensuring quality service and tax and accounting support tailored to international companies:
- Mandatory bookkeeping (journals, general ledger, inventory) with entry of accounting entries, guaranteeing compliance with tax declarations and the reliability of accounting information
- Accounting processing: inventory valuation, depreciation, provisions for impairment, etc., carried out in accordance with international standards, with a view to rigorous implementation of accounting obligations
- Preparation of annual financial statements (income statement, balance sheet, notes) in accordance with French Gaap, providing clarity and transparency for our international customers
- Transcription of foreign accounts into French Gaap format, facilitating our customers’ accounting consolidation and international development
- Determination of taxable income and preparation of tax returns, in compliance with local and international regulations, in conjunction with our auditing and consulting services
- Construction of accounting and financial reports, including key indicators for business management, integrated with our management consulting approach
- Management of French VAT returns, with the support of our international tax experts, ensuring perfect coordination and compliance
- Assistance with the annual audit of accounts, helping to reinforce financial transparency and stakeholder confidence
- Participation in accounting consolidation operations, with a view to international expansion, data reliability and overall consistency of group strategy
Our support in setting up your company in France
A foreign structure established in France sets up local accounting systems, while respecting the group’s management rules. Expand CPA’s French accountants will support you at every stage in setting up your foreign company, offering a comprehensive service and appropriate legal and tax assistance.
- They analyze the content of each class of accounts in order to translate them into French GAAP, taking into account the tax and legal specificities of each country
- They determine the transition table between French Gaap and Us Gaap, ensuring international compatibility of accounting data
- They provide training for foreigners involved in the management of your company in France, reinforcing the skills of your team
Accounting and financial reporting adapted to foreign companies
An international chartered accountant also takes charge of producing and periodically updating accounting-based reporting, offering financial monitoring solutions tailored to the needs of international companies.
This expert in figures explains accounting situations, account class by account class. On the balance sheet, he analyzes both liabilities and assets. He highlights WCR, trade receivables (DSO), trade payables (DPO) and inventories (DIO). It updates cash flow indicators and solvency ratios, guaranteeing optimized financial management.
On the income statement, it calculates intermediate management balances (IMB). It justifies changes in income, sales and subsidies. In collaboration with our network of tax experts, he analyzes the main expense items: purchases, external services, staff remuneration, social security contributions, taxes, financial interest, etc.
A timeshare CFO assignment
Foreign companies lacking the critical mass to recruit their own CFO turn to our time-sharing CFO services. Some of our consultants specialize in these comprehensive assignments. They act as business partners to senior management. They are also the managers of in-house administrative teams, guaranteeing optimum service quality:
- One-off assignments: fund-raising, non-dilutive financing, business planning, deployment of management tools, implementation of performance indicators, interim management, offering flexible, tailored solutions
- Ongoing assignments: day-to-day administrative and financial management, management control, internal control, cash management, financial reporting, supported by our network of partner firms
Why choose Expand CPA for a foreign company located in France?
Expand CPA has a number of advantages for becoming the accountant and co-pilot of your French subsidiary or branch, thanks to our team of competent experts and our international network:
- Our experts are familiar with processes such as fund-raising, non-dilutive financing and business planning, which are essential for international development
- Effective practice in setting up management tools and performance indicators, as well as interim replacements within the company, ensuring ongoing support
- A strong complementarity of professions within the firm, for optimized financial, tax and legal management to meet the varied needs of our international customers
- A firm that puts the emphasis on listening, adapting and teaching in its customer relations, guaranteeing personalized, high-quality service