Imagine this scenario. You are a fully remote company, and your employees are dispersed across the globe. So, you have team members working from Tokyo, Johannesburg, Bengaluru, and Qatar, and you need to calculate their salaries and taxes in different currencies and make the payments accordingly.
Sounds complicated, right? Do you know managing payrolls compliantly and in different currencies can be one of the biggest deterrents for companies looking to hire remote workers?
However, there are solutions and one of them is dealing via multi-currency accounts.
If you have a global team or if you are into international trade, having a multi-currency account can benefit you in many ways including paying your global teams in a few easy steps. But before we understand the benefits, let’s know what a multi-currency account is.
A multi-currency account is a type of bank account that allows your company to do financial transactions in more than one currency. The most significant benefit is the beneficiary name, account number, and SWIFT code remains the same for all currencies.
Apart from the traditional international accounts provided by banks, you can use global payment providers like TransWise, OFX, Tansumo, etc., to transfer money online in multiple-currencies. Impacted by the evolving digital technology and the changing consumer demands, these online multi-currency money transfer companies have revolutionized the money transferring scenario. We all know how digitization and evolving technology have changed consumer behavior. Today we focus a lot on the ease of doing a job, on convenience, and expect a seamless experience. The same holds for money transfers as well. The World’s Moving Global Report reinforces the idea that today we want global payment to happen instantly across geographical borders. We want the convenience to transfer money to anywhere in the world and receive money like a local.
And as companies move to remote work models and embrace globally distributed teams in a pandemic-hit world, these global international payment providers are helping businesses manage international cash flow.
Businesses that deal with multi-currency transactions benefit from having a multi-currency account because it helps save time and effort.
For example, suppose you deal with the import and export goods where you buy things in one currency and sell in another currency or have remote employees dispersed globally. In that case, you can benefit from a multi-currency account. If you operate an e-commerce store that sells stuff in multiple currencies, you can benefit from a multi-currency account as well.
Your month-end accounting becomes convenient with a multi-currency account because you can issue invoices and get paid in one currency. You spend less time in accounting adjustments due to exchange rate differences, and your accountant will have no-hassle matching invoiced amounts and paid amounts.
It also enables you to hold money in multiple currencies in one account. You can use the fund when the exchange rate looks good. You can use your foreign currency when dealing with an employee, trader, client, customer of that country.
The general perception is to choose your trusted bank for making an international payment. But if you are a business that has to regularly deal with multiple currencies, transfer through a traditional bank might not be a viable option for you. Although banks were once the only option for international money transfers, many licensed online money transfer services have revolutionized how international money transfer happens. From lower fees to fast and reliable services, businesses are now more empowered than ever.
There are different companies like TransWise, OFX, Tansumo, etc., that offer multi-currency international money transfers. But, if you’re just starting, you might have several questions running in your mind. Which one is the best service? How do you select one? How to set up an account? Here we answer some of the common questions.
When choosing a global payment provider, look for a platform that offers enterprise-grade financial controls. If you have a large globally dispersed team, look for a platform that lets you schedule several multi-currency payments simultaneously. It should also let you streamline the entire payment process. Ensure to look for solutions that take care of cross border remittance rules to ensure all your transactions are compliant by the federal law.
The exchange rate is a significant factor that affects you while transferring the money and the employees when receiving it. Banks often levy a massive exchange rate.
There could be hidden fees, and you need to do your due diligence while considering opening up your multi-currency account with any banks or providers.
There could be chances for fraud and online money laundering. So, choose a platform that has earned enough credibility and has a good client base.
If you have a remote work model, you can benefit from a multi-currency account. There are many multi-currency online money transfer services available like TransWise, OFX, Tansumo, etc., along with traditional banks to explore. Depending upon the country you are in and the kind of services you want, there are different options that you can check. Knowing what you need can help you zero down on one solution.