Global companies with operations in Israel which move their local financial operations to a global centralized financial service must face the challenge of a unique Israeli statutory requirements that differ from those of most countries in the world: they are more complex as far as both wages and VAT. Furthermore, the language of most documents is Hebrew as part of the statutory requirements. Staff that is located in Eastern Europe, for example, is unable to read the Hebrew documents. In a global centralized financial process, they must deal with the complexity of handling everything related to Israel.
This integrated solution to global centralized financial services provides precise responses for specific issues, and supplementary support for some of the statutory reporting requirements. All the accounting is done abroad, and we handle local requirements, e.g., VAT reports, withholding tax reports, and mandatory monthly and annual reporting. In addition to the technical solution of submitting reports, we also provide consulting services regarding VAT, income tax, and other issues. A global company can benefit from their ability to operate outside of Israel, yet rely on us as their local partner who will take care of all the necessary procedures for the tax authorities. This option usually can work when the client's ERP is authorized in Israeli tax authorities and therefore be the main books for local statutory.
The group financial books are managed through the centralized financial services on a global ERP, while we manage all the Israeli books in parallel but also make sure the local legal entity complies with the entire regulatory requirements as a one stop shop. We do all the accounting in parallel, the annual statutory financial statements, work with the authorities and provide relevant consulting. An important element is a process efficiency which we enable by our ability to take any data from client's ERP, such as Oracle or SAP R3 and process it into information that meets the Israeli statutory requirements. We perform migration and implementation of the data. The entire business process remains in the customer's ERP system. There is an option to provide us with access to the customer's system or, alternatively, to provide us with the data in a pre-defined format, such as Excel tables that may be exported from ERP systems. Instead of inputting everything manually from scratch, we simply import the data into the local system and adapt it to conform to the local tax requirements through semi-automated processes. This affords the customer substantial savings in both time and money.
Multinational companies with foreign branches or subsidiaries in Israel face the challenge of filing Israeli VAT on a regular basis. Guberman can simplify this problem by becoming your VAT representative in Israel. Guberman provides VAT representation services to many global companies as part of the group's one-stop-shop approach. As part of our integrated financial services, we can ease the challenge of opening a company or subsidiary in Israel by taking responsibility for all the financial aspects: ensuring proper registration with the tax authorities, opening a bank account, acting as fiscal representatives and ensuring Israeli compliance. Our shared solutions are equipped to deal with both parallel and combined accounting options.