By Jay Dahal, co-founder of Machnet. Build your remittance and money transfer products.
As the world becomes more interconnected, borderless finance is becoming increasingly important. Today, individuals can live and work in different locations thanks to the rise of remote work. And borderless finance allows remote workers to manage their finances—to save, pay and store their money—regardless of where they are. With remote work growing more popular, many people are compelled to book a flight to a position outside the confines of a four-walled office.
And as the digital nomad era keeps rising, the companies that hire remote workers may also feel the impact on productivity. Hiring digital nomads keeps companies diverse in background, culture and skill sets, allowing more ideas to flow across departments. Opening your company up to digital employees also means fewer commuting employees, which can amount to a big chunk of savings for your company and people!
Start doing your research.
Once you’ve decided to support employees around the globe, make sure you prepare. Invest in the right equipment, and ensure your remote work processes won’t hamper performance. Consider providing your employees with resources like worldwide 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 digital nomads bring. Some have even gone out of their way to create governing laws that support digital nomads through flexible visas and programs specifically designed to attract remote workers—such as Portugal’s Non-Habitual Resident program, which offers tax breaks for remote workers, and Estonia’s e-Residency program, which allows entrepreneurs to run location-independent businesses. Other countries have also implemented special visas or startup programs to attract digital nomads.
For business leaders and entrepreneurs who want to support more remote workers and prepare for the borderless finance revolution, here are a few additional tips to make your experience more efficient and convenient.
Take a close look at your financial processes.
Are your current financial processes built to support a global workforce? Have you standardized processes enough to replicate them across your international chapters? A big thing to consider is law and regulation.
Start by choosing which countries you will be hiring from so you can be adept with their local financial culture, compliance, exchange rates and tax laws. Once you’ve decided on those, create standard financial procedures for payroll, reimbursements, allowance allocation and more. I suggest starting with hiring a few employees globally and slowly working on those financial processes before opening borderless employment. When your team feels confident and stable with its methods, then you’re ready to hire more teammates across the globe!
Consider global technology solutions.
A big consideration for hiring globally will be the monthly expenses like payroll, allowances and benefits. How will you automate that while considering all cross-border payment legalities? In 2023, there are many solutions for you to choose from. (Disclosure: My company provides a payroll solution.)
You can find a solution catering to your company’s needs if you know which countries you prioritize. Look for payment platforms that support multiple currencies, that can do tax calculations and that comply with local regulations and labor laws. And depending on how big your company is and how many global employees you have, you may want to consider solutions with features such as automated reconciliation, real-time currency conversion, access to foreign exchange markets and integration with HR and timekeeping systems.
Enroll your company’s recurring payments.
Your company’s admin tasks can be a headache if you don’t maximize your digital options. A good first step here is to itemize all your recurring payments across the board, such as payroll, business email payments, subscriptions, employee benefits, etc. Once you’ve listed that out, it’s time to automate!
Many financial solutions already have features that allow you to tag items as recurring bills, so make sure to do that. By enrolling in online bill pay services, you can avoid the hassle of writing checks and making telephone payments or visiting biller websites or branch offices, avoid late fees and be able to pay your bills from anywhere in the world as long as you have internet access.
Plan for your company’s future.
The future may seem uncertain, but planning for it is essential. Where will your business be headed in the next 10 years? Are you going to be investing in your digital assets? Are you looking to branch out to other countries? Are you looking at cross-country collaborations?
Ironing out your company’s plans will allow you to take the necessary steps to prepare for them. Create standard operating procedures that slowly shift your team toward these significant changes. Find the required people who are well-equipped to get you to your goals, and look into technology solutions that could potentially support these changes moving forward.
Look for financial institutions that support your company’s goals.
When looking for financial institutions, I suggest looking for those that cater to companies and people who live borderless. Look for those who have an international presence and who will not 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 in every transaction.
Consider those with the features you deem essential, such as virtual wallets, virtual cards, mobile or e-banking, bill pay features and currency conversion. This allows you to manage your finances globally while transacting locally.
Borderless finance is becoming more important as individuals seek to live remote lifestyles. By adapting to these changes, you may find it easier to shift into supporting employees worldwide. And they won’t have to worry about being “stuck” in one country or having to work around their vacation. Happy employees are often productive and create opportunities that support their growth. Because as they travel and learn about different cultures, they’ll be able to spot opportunities you might not even know about.
By planning, you can take advantage of this shift and manage your company conveniently and seamlessly, no matter where you are in the world.