A Guide to Managing Multiple Currencies
Enterprise software solutions ranging from ERP to CRM empower businesses to prosper by using predictive analytics tools that leverage historical data to enable smarter decision making. Too bad that doesn’t work for managing multiple currencies. Past monetary trends offer little assistance in setting prices and making predictions in your global empire. Not a reassuring thought considering that fluctuating currencies can put your profit margins at risk. What’s an international business to do?
There isn’t one easy solution. However, even in a turbulent global marketplace, there are methods and technologies available that allow businesses to mitigate risk and access up-to-date rates. Despite the instability of foreign currencies, small and mid-size businesses have achieved tremendous gains across the world. Don’t miss out on the wealth of opportunities around the globe; follow our tips on how to best leverage enterprise technology and economic strategies to achieve international success!
Though past currency data can only do so much when you’re developing your fiscal strategies, there are ways to plan ahead and mitigate risk as you undergo global expansion. One method is to quantify your exchange rate risk, which will help you determine just how much you could stand to gain or lose because of swings in currencies.
First, we recommend taking inventory of everything in your business that involves foreign currency. From there, you can run through different scenarios: What if your home rate drops 10% against other currencies you work with? What if a foreign currency drops 25% against your home currency? By using some good old math, you can run through different situations and estimate the impact of rate changes on your bottom line.
It’s a simple tactic, but this information offers a useful entry point into understanding the effects of shifts in exchange values on your profit margins. Then, you can leverage that insight to develop operational and financial strategies that can protect your company.
Get Automatically Updated Exchange Rates
There might not be a way to predict the value of foreign currency in the future, but there are plenty of ways to obtain current exchange values. However, many of the available options have their shortcomings. The first–and worst–is manually entering rates into your system. It’s way too easy for employees to mistakenly enter an incorrect figure into your ERP software, putting your entire operation at risk of making costly accounting errors or closing large international deals at the wrong time.
To eradicate the need for manual data entry, some companies invest in building manual scripts that import files from exchange rate websites into their ERP systems. It’s a nice idea, but often the effort and difficulty are too much for a business to take on in addition to all the other responsibilities.
That’s why Datix built Unity X. Using the same technology that powers Unity, our premier software integration solution, Unity X connects your existing ERP system with XE Currency Data API to instantly sync up-to-date exchange values every day into your ERP system. XE.com has served as a reliable currency authority for the past 20 years, making it the ideal choice for our solution.
With accurate, current rates synced directly into your ERP system, you can get the most out of your ERP’s advanced global tools and boost your efficiency and precision to combat risk and drive profits. Better yet, Unity X can be deployed quickly without any coding on your end, offering zero interruptions to your business processes.
Smart methods and top technology can make your small to mid-sized manufacturing or distribution business a competitive force in the marketplace. But you don’t want to mitigate risk only in your approach to international finances. By teaming up with leading enterprise software consultants, you can ensure that you gain a robust system without hassle and without jeopardizing your bottom line.
For successful software solutions, look no further than Datix. In addition to developing Unity X, we are also an Infor partner and an Epicor® ERP expert, with a myriad of other exciting software solutions. By teaming up with a leading enterprise software consultant, you can ensure you gain a robust system without hassle and with maximum ROI.
For more information about Unity X, or our other exciting software solutions, contact us today!