Problem #1

Avea had recently shifted its global e-commerce operations from the UK to the U.S. Sales, fulfillment, and customer support were now centralized in the U.S.—but one key payment method didn’t move with the rest of the business: PayPal.

At the time, over 80% of Avea’s D2C revenue came from PayPal subscriptions. But because PayPal doesn’t allow subscriptions to be transferred between legal entities, those payments continued landing in the UK PayPal account—even though the U.S. was doing all the work.

This created a knot of issues:

  • There was no legal structure around the revenue flowing to the UK.
  • The U.S. entity couldn’t record the revenue it was actually earning.
    The UK risked being taxed on income that didn’t belong to it.
  • Any attempt to migrate subscriptions risked significant churn.

It was a broken system—technically, legally, and operationally.

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The Solution

Commenda helped Avea create a legal and financial bridge between the UK and U.S. entities that kept revenue flowing smoothly—without disrupting the customer experience.

We put in place an intercompany agreement that made it clear: the UK was only collecting funds on behalf of the U.S., which remained the true economic owner of that revenue. The agreement spelled out the responsibilities of each entity and established a compliant framework for moving funds between them.

To satisfy tax authorities, Commenda also created a transfer pricing policy that ensured the structure followed arm’s-length principles—demonstrating that the setup was fair, transparent, and aligned with international standards.

On the accounting side, we worked closely with Avea’s finance team to reflect this arrangement properly in Xero, ensuring the books stayed clean and auditable.

With this in place, Avea:

  • Avoided disrupting any customer subscriptions
  • Preserved their most valuable revenue stream
    Stayed compliant across both the U.S. and UK

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Problem #2

While the PayPal challenge brought us in, it revealed a deeper issue: Avea’s accounting systems weren’t designed to handle a multi-entity, cross-border business at scale.

Each entity had its own workflows and tools. The UK team only worked part-time. Month-end close routines were inconsistent. And leadership lacked a clear, consolidated view of financials across countries.

This patchwork approach made it hard to move quickly, stay compliant, or plan effectively.

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The Solution

Commenda helped Avea standardize and unify its accounting operations globally.

We migrated the U.S. and UK books onto a shared platform with a unified chart of accounts. Month-end processes were aligned across entities. We brought in a seasoned UK accountant to handle filings and compliance, while continuing to support the U.S. operation.

To streamline intercompany coordination, we introduced clear workflows for cross-entity transactions—ensuring that accounts payable, receivable, and reimbursements were documented cleanly and consistently.

We also set up real-time dashboards that gave leadership full visibility across all entities. And to stay ahead of U.S. tax risk, we added proactive alerts for state-level nexus thresholds, helping the team register early and avoid penalties.

Avea now operates with a global financial infrastructure that matches its scale and ambition.

Revenue is properly attributed. Books are consistent and audit-ready. Tax filings are on time and defensible across jurisdictions. And leadership can make informed decisions with confidence.

Most importantly, there was no disruption to customers. Subscriptions stayed active. Churn was avoided. And the business kept growing—on solid financial footing.

With Commenda, Avea turned complexity into clarity—and laid the foundation for long-term global growth.