Efficient currency management for Accountants and their clients

Small and Medium-Sized Enterprises (SMEs) are increasingly venturing into international trade. However, navigating foreign markets can be daunting, leading to unexpected costs and risks. Many SMEs lose money due to challenges such as foreign exchange losses and hidden bank fees. To address these issues, accountants can play a pivotal role by offering advisory services to help SMEs understand foreign currency impact and implement processes to mitigate unnecessary costs and risks. This article explores how accountants can create revenue opportunities while assisting their clients in unlocking safer international growth.

 

Beyond timing: robust Currency Management

When dealing with foreign currencies, many assume that timing the exchange is the key to success. However, the currency market's unpredictable nature makes consistent timing nearly impossible. Large companies have recognised this and instead focus on robust cost and risk management. Accountants should educate clients that effective currency management involves more than just exchange timing, emphasising the importance of cost and risk mitigation strategies.

The privileged relationship between Accountants and SMEs

A significant number of SMEs engage in international trade, but very few manage their currencies effectively. SME directors and finance managers often lack the expertise to handle international finances without expert guidance. Accountants can fill this void by providing specialised assistance, as banks and fintechs may not offer solutions tailored to smaller businesses. This presents a unique opportunity for accountants to support SMEs in optimising their currency-related decisions.

Understanding FX and payment fees with HedgeFlows

For many SMEs, understanding the costs associated with foreign currency transactions is a challenge. The FX Gains & Losses line on accounting statements can be confusing due to issues such as stale rates and mixed costs. HedgeFlows offers easy-to-understand reports that break down FX Gains & Losses to the transaction level, helping SMEs uncover hidden costs and comprehend how currency fluctuations impact their finances.

Putting the right processes in place

While identifying excessive FX and payment fees is crucial, protecting businesses from currency fluctuations is even more critical. Swift and significant currency swings can erode profits and jeopardise cashflows for small businesses. Accountants can guide SMEs in implementing processes to reduce currency costs, such as pre-booking guaranteed exchange rates for committed invoices. HedgeFlows offers tools to support cash and risk management, including hedging policies, multi-currency payment automation, and cashflow planning.

How to get started in 3 simple steps:

Accountants can proactively assist their clients in enhancing their international trade experiences by following these steps:

• Join HedgeFlows partnership programme for accountants to access exclusive training, marketing materials, and co-branding opportunities.
• Engage clients in discussing their foreign trade challenges by conducting short reviews of their payment processes. 
• Leverage HedgeFlows tools and support to simplify and secure international finances for clients, including automated diagnostic reports and relevant guides on cashflow planning and risk management.

Conclusion

Accountants have a unique opportunity to empower SMEs with safer international growth by offering valuable advisory services in foreign currency management. By collaborating with HedgeFlows and adopting best practices, accountants can differentiate themselves by providing data-rich management reports and timely insights, driving exceptional value beyond compliance for their clients. As SMEs expand their global presence, accountants can play a crucial role in ensuring their success by making international finances simpler and safer.

If you'd like to find out more about our partnership programme, don't hesitate to reach out!