How to Integrate a Multi-currency Account Platform With ERP

Struggling with optimising the way you receive and make payments in multiple currencies globally?

Well, integrating a multi-currency account platform with your enteprise resource platform (ERP) system is certainly the way to go about it. Before getting into the details, let’s take a look at how the payment process could possibly look for you if you are running a global business.

You purchase goods from suppliers in Hong Kong, sell them to clients in Europe, and pay freelancers in India for running marketing campaigns. As you increase your business footprint across different countries, you may need to set up separate bank accounts in those countries to do transactions with your customers or vendors. Dealing with different bank accounts across borders only adds to your struggle with payments processing times, security, bank transfer charges, exchange rates, payment automation, financial reporting, and so on.

This is where the need of having a multi-currency account provider emerges. As you integrate your ERP with a multi-currency account platform, you’ll be able to reduce transaction costs, save on exchange rates, do seamless transactions, automate your payment and bank reconciliation processes, and eliminate the need to separately integrate your ERP with different banks across the globe.

Now, how do you get started? Do you really need a multi-currency account platform? What are the benefits of having a multi-currency account? How can you integrate your ERP with a multi-currency account provider? Get answers to all these questions and more in this blog.

What Is a Multi-currency Account Platform? Do You Really Need It?

A multi-currency account platform is an alternative to your bank account and lets you receive or send payment in more than one currency. As the name suggests, it allows you to handle multiple currencies as you do business outside your country. Account supporting a single currency with a traditional bank often hinders payment processes and therefore business growth, that’s where a multi-currency account comes in.

But, do you really need a multi-currency account platform?

If your business transacts with other business entities or individuals across borders, you will definitely benefit from a multi-currency account platform. By helping you to deal with multiple currencies at the same time, this account paves the path for you to save time, streamline processes, and get the best exchange rate as well. A multi-currency account is especially helpful if you:

• Run business operations across countries
• Sell products on different marketplaces around the world
• Offer products and services to clients across the borders in different currencies
• Employ staff, freelancers, or contractors overseas
• Want to send or receive funds in multiple foreign currencies

6 Key Benefits of Having Multi-currency Accounts

Now that you know what a multi-currency account is, here are some benefits that you can expect.

1) Reduced Transaction Costs: Holding multiple bank accounts across countries means that you are spending a substantial amount of bank fees for keeping those accounts active. Moreover, there may be additional fees when your payment gets processed through corresponding banks. A single account with a multi-currency provider takes care of these issues as you hold all the currencies and pay zero account fee.

2) No More Forex Volatility: When you run a business across borders, you are subject to forex volatility as well. For example, if one of your customers pays you in US dollars, you may lose some money while converting it into Australian dollars, especially if the exchange rate is not in your favour. A multi-currency lets you accept and make payment in your preferred currency so that you actually don’t end up receiving less. You can also keep your money on hold in the respective currency account until the exchange rate is in your acceptable range.

3) Easier Payment Processes: With a business to run across countries, you have to focus on operational efficiency and positive cashflow as well. With different bank accounts, you’ll have to actually spend time matching and reconciling bank statements with the customers and payable invoices, that too in different formats for various banks that you do business with. Integration with a multi-currency account platform eliminates the need for juggling between different banks across locations and helps you streamline the payment processes.

4) Faster Turnaround Time: When you receive or make payments across borders, the processing time is likely to be slower than domestic payments. Multi-currency account platforms put an end to slower turnaround times as well. Since you operate your multi-currency account online or through an app, you have access to the account, no matter where you go and the international transfer times get reduced from weeks to minutes or at most a day.

5) Boosts Sales: Your customers don’t want to be worried about the exchange rate, transaction fees, and so on. If you try to force them to pay in currencies other than the preferred ones, you are likely to lose sales as well. And, this is another challenge that multi-currency account platforms help you to solve. No matter which country you do business in, you will be able to offer payment options in local currency. This ultimately defines customer experience and increases the chance of repeat sales whilst boosting your topline.

6) Strengthens Supplier Relations: Just like your customers, your global suppliers don’t want to lose money when they receive payments. With a multi-currency account, you will be able to pay them in local currencies so that they don’t have to lose money and you do not have to pay unfavourable exchange rates or international transaction fees. This helps you to establish friendly relations with suppliers and it pays off in the long run.

3 Ways You Can Benefit From Multi-currency Account Integration With ERP

If you are already using an ERP platform, that’s great. Chances are high that you have highly invested in the ERP platform itself. So, why not integrate a multi-currency account provider with it so that you can operate your business in a seamless fashion. Here are some of the key benefits of integrating a multi-currency account platform with your Enterprise Resource Planning (ERP) platform.

1) Improved Automation Capabilities With Reduced Complexity: Considering that you are running a business across countries, you have several hundred payments to make every month. When you integrate a multi-currency account provider with the ERP system, you will be able to automate the payment processes, bank reconciliation, payroll management, and so on. You can set up bank accounts denominated in different currencies with the same provider which will enable you to send money to suppliers, contractors, employers, or freelancers in their local currency. This will help you save time and also give you a bird’s eye view of all the transactions.

Most importantly, you will no longer need to create payment files in different formats that would be required by traditional banks in order to automate the payment processing function in your ERP. All of that effort will be reduced to just completing the integration with a single multi-currency account platform, further resulting in saving IT implementation costs.

2) Favourable Exchange Rates: One of the most crucial benefits of having a multi-currency provider integrated with your ERP is that it provides you with the best available exchange rates. These rates help you to decide when to process outgoing payments or hold on to existing balances in different accounts. As you start processing payments when the exchange rate is favourable, you’ll be able to save money that you would have otherwise spent without any reason.

3) Facilitating Fixed Rate Transactions: Since exchange rates fluctuate almost every other day, it might be difficult for you to manage transactions. For example, if the exchange rate is not the same on the day of order confirmation and transaction, you may not receive the amount you expected. Having a multi-currency account integrated with your ERP helps you to fix the rate on the day of the transaction and lock it until the payment is completed, regardless of subsequent changes.

Top Multi-currency Account Providers In Australia

Now that you know the benefits of integrating multi-currency accounts with your ERP, would you like to know more about the top multi-currency account providers in Australia? Well, we heard you, keep reading!

1) TransferWise

The multi-currency account by TransferWise allows you to send money abroad, receive payments, and hold balance in different currencies as well. Here is what you can do with a TransferWise multi-currency account:

• Receive salary, superannuation or make payments without going through the hassle of dealing with multiple banks
• Get the best exchange rate when you spend in local currency in another country
• Send payment to 70+ countries with a low and transparent fee
• Set up direct debits in a foreign currency to avoid being charged an international transaction fee

Because of being regulated by the FCA, your money stays safe with leading financial institutions like JP Morgan Chase, Deutsche Bank, and Barclays. TransferWise also allows you and your team members to spend online and in-store in 70+ currencies, thanks to the TransferWise debit card. If you already have an account with TransferWise, you can simply add new admins who then can get this facility. Admins can add new members and control expenses by setting a spending limit as well.

2) Stripe Payout

Stripe Payout by Stripe helps you to send payments to vendors or service providers across borders and accept payments from your customers as well. In addition to the above, the infrastructure makes it easier for you to automate payout workflows as well.

To get started, you’ll have to create an account with Stripe. Once you complete the verification, you can top up your Stripe account with funds from a linked bank account. Now, you can use the funded Stripe account to send payouts to recipients with the help of the API or the dashboard. It’s worth mentioning here that you can onboard recipients with the prebuilt UI flow or can even customise everything.

Stripe Payout helps you to:

• Pay suppliers, vendors, freelancers, or employees as fast as the next business day
• Simplify compliance with onboarding and verification processes
• Reduce operational overhead by automating payout workflows

How to Integrate Multi-currency Accounts in ERP?

Assuming that you are running a business internationally, you send and accept payments to and from different countries all over the world. Be it sending payroll to contractors in India or accepting payments from a client in the UK, multi-currency accounts help you avoid losses due to unfavourable exchange rates or international transaction fees.. This is why having multi-currency account platforms integrated with your ERP is the best solution when you don’t want to go through monetary loss. Now, the integration can get a little technical than you expect it to be. The ERP consultants at NeeVista come with industry knowledge and experience to handle integrations like this and can help you to quickly set up the entire automated payment and bank reconciliation process. Shall you need assistance, don’t hesitate to drop a line here!