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5 Ways CFOs Can Streamline Their Global Financial Operations

5 Ways CFOs Can Streamline Their Global Financial Operations

Problem solving, financial operations, finding solutions, and creating new innovation is all part of being a Chief Financial Officer (CFO) of any company.

There will always be financial requirements within a business – budgets need to be worked out, then allocated to each department, all income and expenses should need to be tracked, and books managed efficiently. Money matters within a business are a key leg of any organisation and someone needs to be overseeing these processes and ensuring that all aspects of the business’ finances are managed correctly. 

But modern day CFOs face other challenges, like multi-currency transactions and, in some cases, having to manage the financial aspects of more than one location. 

So how do modern day CFOs streamline their financial operations, especially if they are dealing within a global business? 

Adjust duties for a strategic approach

With each expansion into a new country, the work of a CFO increases, especially considering that territory expansion brings added responsibilities to their workload. The financial aspect, in most cases, is usually replicated within the new country and subsequently means that the CFO will need to understand a new set of laws and tax systems. 

This can feel very overwhelming for the CFO, especially considering that these days many CFOs are working remotely. 

Another aspect of the CFOs work, and argumentatively the most important, is to provide strategic leadership. And, within a new country, this will be more important to the team if the CFO focuses on developing pricing strategies, seeking out the best suppliers, and trying to identify where the most profitable markets are. 

If their duties are streamlined, and more focused towards seeking out new areas of profit, they could exponentially increase their worth and ease the process for the business. 

It is a better option to employ someone who could be in charge of the admin aspect of the CFO’s duties, to ensure that all sides of the spectrum are covered. This would be a more strategic approach to achieving a more profitable outcome.

Cut Forex related costs

For many companies that trade on a global scale, they tend to make use of Forex accounts that allow them to receive currencies from other countries. However, this method can become expensive considering the amount of bank fees tied to the process. 

The fees associated with forex payments might not seem like much when viewing just one payment at a time, but they can amount to a large sum once final calculations are done. Especially when payments are made or received from other countries – staff that needs to be paid, supplies bought, or payments made in other currencies. 

It is important to look into ways to make these cross-border payments more cost effective. Therefore, CFOs should look at bank accounts that can be customised for their specific needs to enable cross-border payments that won’t cost a lot. 

Financial Operations

How to negotiate the best Forex rates

When reviewing the Forex strategy, it is important for CFOs to understand how banks offer exchange rates. Once they are aware of the mid-market rate, they would be able to save the business a fair amount in Forex fees. 

Banks can access the mid-market rate (midway between selling and buying rates) for Forex, but banks rarely offer this exchange rate. Banks often offer what is called a spread, which is the halfway mark between the mid-market rate and the rate that they offer their clients. 

To calculate the spread, you can search the internet for the mid-market rate and compare it to what has been offered for a cross border transaction. It is important to know that these rates can be negotiated and should not always be accepted as it.

Don’t have multiple bank accounts

The norm is that each branch of the business that expands into a new country must have its own business bank account, and this has been the case for many years. 

But having multiple accounts, with multiple currencies, and having to make multiple cross-border payments each month racks up a lot in bank fees. Elements such as employees’ salaries should be transferred each month, costs for suppliers should be sent to different countries, and general payments such as rent should be paid, as well. 

Not just that, but managing multiple accounts and bank relationships is time consuming and uses unnecessary time that the CFO could have spent on valuable tasks. 

Therefore, a smarter approach would be to consider managing all of the global financial operations by opening transactional currency accounts through a single platform.

Bank with PayPugs

Making use of a single platform to manage multiple currencies is the best time saving method that any global company can implement. At PayPugs, we know that managing multiple currencies can be daunting, especially when considering high bank fees. 

We offer business accounts that are easily customisable your needs. Our teams are trained in helping businesses find the perfect solution for them. 

We offer:

  • Secure payment services using SWIFT and SEPA networks
  • Segregated accounts for better management of funds
  • Business debit and prepaid cards

To find out more abouta PayPugs account, book a call with us and we can discuss the possibilities and needs of the business account. 

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