These could be, for example, solicitors, architects or consultants which have offices in another country, work with third parties internationally, perform work outside of the country or their client is based in another country. All of these scenarios raise a foreign currency inflow or outflow either in the name of the partnership or their client.
The professional firm activities that fall into this category would be :
Professional firms receiving funds from clients in foreign currency for payment of fees
Professional firms receiving funds from clients in foreign currency for onward investment
Professional firms paying international third party costs relating to a client matter
Intercompany payments / receipts to / from branch offices
Repayment of client monies not in home currency
The issues that need to be dealt with are :
Which party, client or firm is at risk
Who takes responsibility for managing that risk
When does the risk arise
How to record and manage that risk
Portfolio management strategy
Evaluation of positions and choice of actions
Manage underlying changes
Accounting appropriately for office and client monies
Cashflows caused by forex activities
Choice of currency providers and relationship
Documentation and confirmations
Control of instructions
Delivery of funds on time
Handling of queries
Funds security, internal and external
Evidence of activity
Valufin’s services address all of the above office and client treasury responsibilities. Valufin services ensure that adequate procedures are in place, followed, recorded and monitored. The outcome being that risk is managed and evidence of activities is recorded.
The benefits and advantages to both parties are:-
Accurate record keeping which ensures division of funds, removal of risk of unexpected accounting variances and control of risk for the whole period in question.
Rate negotiation, correct strategies, market timing results in direct savings on payments and increased revenue on inflows.
Streamlined systems and accessible information reduces administration costs and time.
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