How We Helped A Client Save On Currency Exchange
RJF Accounting & Business Support helped save a client tens of thousands in lost revenue by adopting a currency strategy they hadn’t heard of…
A large creative digital agency approached us after losing a substantial amount of money on processing international payments. The business had many European clients, but found that exchange rates and transfer fees were having a destabilising effect on the business.
We knew exactly how to help them take a smarter stance on international finance, and soon managed to bring their expansion plans back on track.
The agency had been working with a well-known accountancy firm for a while. Yet it soon became apparent that they’d never been told about hedging when dealing with overseas clients.
This is a freeze on currency rates – agreed prior to the payment date – so that fluctuating exchange rates don’t reduce an invoice’s value in the time between it being issued and paid. Our client wasn’t aware that such an opportunity existed.
RJF stepped in to bridge this knowledge gap, and address their approach to invoicing and collections as a whole. The process had to improve, since the euro-to-pound ratio wasn’t doing the organisation many favours.
We brought real-world, first-hand business experience to the table to remove the headaches of going global for our client. It only took a single look at their paperwork to see the missed opportunity, and we quickly took the initiative to rectify the situation.
RJF spoke to several traders, who agreed to lock in the exchange rates for a small fee. Uncertainty was dealt with in one stroke. 80% of their overseas business was now secured against wild fluctuations, making it easier to plan cash flow and investments.
Meanwhile, we set up an exchange to EUR/USD instead of GBP, since the relevant rates and transfer costs were kinder to the agency’s bottom line. It saved £20,000 in their first year of subsequent activity. Today, they’re thriving.
Giving a global brand an intimate level of service is what we do best. Contact RJF Accounting & Business Support to learn how we can care for your finances too.