Professional Firms

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
  • Market knowledge
  • Manage underlying changes
  • Accounting appropriately for office and client monies
  • Cashflows caused by forex activities
  • Hedging instruments
  • Revaluations
  • Management Information
  • Monitoring
  • Negotiating rates
  • 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.

Click here for a pdf copy on Professional Services

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