Wadih founded PairSoft and PaperSave, and he currently advises non-profits on business process improvement and technology.View all posts by Wadih Pazos
Wadih Pazos • June 16, 2022
Multi-currency accounting software is helping businesses ride the wave of the evolving labor market by helping to translate these trends to back-office operations and seize opportunities through automation to achieve greater efficiency.
Over the last two years, business owners have recognized the advantage of hybrid work settings to provide flexibility and account for in-office and remote work fluctuations. Many companies have made recent adjustments to their workflows to accommodate these demands. However, making remote work possible and productive at the same time has been a matter of concern. This has led businesses of all kinds to search for vigorous accounting software solutions and apps for their business management systems to mitigate siloing and support collaborative communication.
Hybrid and international work has had a particularly profound impact on back-office processes, such as curating financial reports, bookkeeping, and accounts receivable and payable, all of which depend on time-sensitive constraints and strict compliance measures. These challenges are compounded when operations branch out across borders and work with different currencies.
Back-office roles have required in-office centralization because of the inherent controls the environment provides. These traditional advantages include:
While these benefits have been viewed as tried and true, they fail to address the modern demands of global business and participation. Growing businesses face scaling limitations if they do not have an ERP which is functional with foreign currencies so they can confidently participate in the global market.
Small businesses also realize if they refuse to innovate beyond them, they risk lagging into obscurity as workforce expectations continue to shift and market competition is achieving higher efficiency through automation.
There are several different kinds of accounting software on the market. Multi-currency software provides real-time bookkeeping in a base currency and meters revenues and liabilities incurred through currency conversions. This kind of software can track currency exchange rates for multiple different currencies during standard cash flow processes and provide real-time analysis.
To keep general ledgers and balance sheets error-free and precise, international and remote teams need the currency functionality to track multi-currency transactions and be able to convert vendor pricing from a local currency to the currency of your choice.
This accounting solution allows an international organization to designate specific currency types to various vendors and clients as well as assign denominations to bank accounts and credit cards. Multi-currency software can even track remote bank feeds to record exchange rates during foreign bank account reconciliations and provide monitoring in a home currency for quick review.
AP software achieves a significant amount of efficiency through automation, such as the use of optical character recognition (OCR) and exchange rate tracking. Once an invoiced PDF hits a designated mailbox, OCR extracts the details automatically, categorizes them, and sends them to the appropriate approval manager with relevant currency exchange rates and pricing conversions. This doesn’t only bring efficiency overall by reducing the life cycle of an open purchase order, it does so while your staff is on vacation, working from home, or working from an international office.
These automated tools remove the human manual entry components from conversion errors and entry mistakes. This means invoices are not experiencing unnecessary snags and can be processed in time to account for international ACH transfer delays, meaning your company will begin meeting discount deadlines more often and build a repertoire with their respective clientele.
It has strictly been the recent emergence of AI-powered tech, such as PairSoft, that has finally elevated remote back-office work to a level where it can compete with the traditional advantages of brick-and-mortar office space.
Multi-currency accounts payable software:
These functions free up your talent to focus on more intricate work while generating higher job satisfaction and higher performance. Automation also removes human error from the process, shoring up the organization from mistakes and unnecessary timeline setbacks.
Increased performance is not the only benefit of accounting software. This kind of product enhances human resource elements and makes workplaces competitive for talent in a world that is increasingly decentralized.
These benefits include:
More and more workers are prioritizing flexibility in their work. A recent study found that the majority of workers would like to work from home at least three days a week. As labor demands are soaring, high-skilled employees are capable of picking and choosing employers who can accommodate them. Cloud-accounting software brings the benefits of a main office right to your team members’ home office desks, empowering them to immediately access and review documents and orders no matter where they are in the world.
Having a robust multi-currency accounting software will also empower your talent acquisition team to begin employing remote and international freelancers when needed. A recent study found there is a major shift to freelancing in the global workforce, driven mainly by the desire for flexibility and the ability to work remotely.
Lastly, automation is key to smoothing out job-related friction like time-consuming manual recording in spreadsheets and bookkeeping templates.
PairSoft checks all the boxes your company needs to support and scale international and remote back-office teams. From exchange-rate tracking to streamlined purchase order approvals, PairSoft is making work easier for decentralized teams while reducing overhead expenses and increasing efficiency.
Interested in learning more about how we can help your team with multi-currency functionality? Get a demo today.