As a company expands and scales, Chief Financial Officers (CFOs) of companies that operate across can find that their corporate treasury and accounting functions become inefficient.
They have a lot to deal with, from supplier and employee payments to maintaining banking relationships across different cases. CFOs, on the other hand, can find ways that will save costs by using modern and creative services that are tailored to the global economy and do not rely on conventional providers.
The most important area that they should focus on and reconsider is opening a business bank account abroad. They can open a multi-currency business account to simplify their business FX by avoiding several hidden fees and gaining access to favourable exchange rates on the wholesale FX markets.
Check for Inefficiencies in all Cross-Border Operations.
With each new country into which a business expands, a CFO’s workload and responsibilities can double. If you believe that all aspects of corporate treasury, accounting, and tax enforcement must be replicated in each jurisdiction, the workload will undoubtedly increase, and you will easily become overwhelmed.
If a CFO with global financial operations is to be truly successful, they should concentrate their energies on developing pricing strategies, finding attractive markets, and locating the best suppliers.
To do so, they must save time in places where new services will increase their productivity and profitability. This will help them invest more time on more strategic benefits by eliminating unnecessary operational tasks like maintaining multiple bank relationships across borders.
Cost Saving Associated With Business FX
One of the key areas CFOs can consider is the FX management. Even though it may be costing them a lot of money, too many companies with cross-border operations still rely on their key banking relationship to power their business FX processes.
When considered individually, the transaction and currency exchange fees that banks apply to their clients’ payments can seem minimal, but they quickly add up for import and export businesses, as well as those with supplier and staff payments in a different currency. Even if these businesses use payment gateways that minimize fees or combine them into a single payment, unpredictable exchange rates are still a problem.
The exchange rates between bank accounts can be comparatively low for companies with multiple banking relationships in different countries. However, there are now alternatives for businesses that give the best currency exchange rates.
Open a Multi-Currency Account
Consider opening a multi-currency business account to avoid the hassle of managing multiple banking relationships in various countries while also having access to the most attractive exchange rates for your business.
Most CFOs want to make sure that their global finance operations allow them to expand and develop without being overstretched with unnecessary documentation. They can open a multi-currency business account and manage transaction – based currency accounts through a single platform if they want to.
This means less time is spent on outdated administrative processes and more time spent on strategic financial planning that will help the company’s development and growth into new markets.