Simplifying international payrolls
Leeann Nash December 1st 2023 - 3 minute read
Handling an international payroll can be complex, and the end of the year can present additional challenges for firms paying employees in multiple currencies.
Bank closures over the festive period make it difficult to time payments for different teams around the world, and end-of-year bonuses can add additional strain.
Meanwhile, currency volatility is an ongoing challenge that companies have to contend with year-round.
Fortunately there are ways you can simplify your payroll process and save money, both over the festive period and throughout the rest of the year.
One key challenge for firms with an international payroll is the complexity. Sending money to multiple accounts in different currencies can put a lot of strain on your finance team, particularly when those payments are time sensitive.
However, our batch payments service allows you to streamline all your international transfers into one easy-to-use platform.
You can make payments to over 120 countries in more than 40 currencies, and make sure the right amount of money goes to the right place at the right time. You can also review payment history, manage future payments, and even set rate alerts.
Having one simplified payment platform can ease the strain on your business. Not only can this reduce errors and save time, but it can also help to cut costs.
Preparing in advance
Another way you can save money, and navigate currency volatility, is to plan your payments in advance, either by storing funds in a digital wallet or using a forward contract.
Forwards contracts are an FX product that allows you to secure an exchange rate for up to a year in advance. While you won’t benefit if the rate improves, you will be protected from any negative movement in the currency market.
You’re also able to budget knowing exactly how much money you’ll get when you exchange currencies. This can be hugely beneficial to long-term financial planning, helping to minimise risk and provide more predictability.
Another option is to buy currency in advance and store it in a secure digital wallet. This way, you can take advantage of a strong exchange rate and have the funds on hand when you need them.
In addition, when you set up a batch payment through the Currencies Direct platform, you can draw the funds from the existing balance in your digital wallet.
Bespoke risk management strategy
While forward contracts and buying currency in advance can help you mitigate risk, a bespoke strategy is even more effective. At Currencies Direct, we can tailor our range of services to suit your unique needs.
We offer many other products in addition to forward contracts, including market orders and options. Market orders allow you to target a particular exchange rate, while options combine the security of a fixed rate with the flexibility to benefit from positive market movements.
With all these tools at our disposal, we can create a personalised plan. We’ll take the time to learn about your business, leveraging our industry expertise to streamline your payments and mitigate risk. If you ever need support or guidance, your own dedicated account manager is on hand to help.
We’ll also help you execute the plan and provide performance updates. This way, you can evaluate how well the strategy is working and tweak it based on your company’s changing needs and market developments.
Working with Currencies Direct
If you choose to work with us as your international payment provider, there are other benefits you’ll enjoy.
While your account manager is there to provide expert support, you can also sign up to receive market insights and updates from our analysts. This way, it’s easy to keep on top of what’s happening in the currency market.
We also offer highly competitive exchange rates. And, unlike some providers, we don’t charge transfer fees. When you’re making multiple payment transfers to employees around the world, even a small transfer fee for each transaction can quickly add up. Therefore, working with us could significantly cut costs.
If you want to find out more about our payments platform, personalised risk management, or anything else, please do get in touch. Our team is on hand to help however we can.