Management of cash, cashflow and financial risk is critical to any organisation, especially in turbulent times.
The role is not always easy, however.
Common problems include:
Lack of visibility or control over international cash balances,
Lack of systemic agility to respond quickly to new situations,
Inability to manage the costs and risks of international operations,
No time, or timely information, with which to generate strategic insights.
In our latest guide, Four Ways to Better Cash Management, we explore different approaches to address each of these challenges.
The free, 28-page guide also includes insights from accountants, art dealers, film producers and finance directors on how they keep control of their international cashflows.
Let’s look at just one of the topics covered.
Manage FX risk, cost and international payments
Operating across borders adds a layer of complexity to any business, especially if your people are internationally mobile.
Managing foreign transactions from your domestic business bank account is rarely the best solution – transaction charges are high, exchange rates are usually unfavourable and, being exchanged at the current, going rate, your transactions and transfers are at the mercy of the prevailing exchange rate.
Operating a multi-currency account can often be a sound solution. With these, you can hold cash in multiple different currencies, exchanging them as you require.
Issuing travellers with prepaid, multi-currency cards can be a good way of empowering people with the ability to respond to opportunities or challenges as they arise, and working with an experienced foreign exchange partner can help you mitigate foreign exchange risk.