Jenkins, Magnus, Volk, Carroll, P.C.

Certified Public Accountants

 

42714 Woodward Avenue  Bloomfield Hills, MI 48304

 

Phone: 248-858-2400

Fax:     248-858-7301 

 

Website: www.JMVCcpa.com

January 2022

January 2022 Client Profile

Client Profile

Elena’s consulting business is expanding and now has clients in Germany and Mexico. How can she reduce the amount of foreign currency exchange fees she’ll incur when clients pay in their local currency?


While international expansion is exciting, it adds a layer of complexity to your business. Elena should first consider havinig her customers pay in U.S. dollars, instead of euros or pesos. This will shift the foreign currency exchange risk to her client, eliminate any exchange fees she may incur and simplify her business recordkeeping.


But if getting paid in dollars isn't an option, Elena should open business bank accounts in multiple currencies. Her German client can pay in euros that get deposited into Elena's euro bank account. And if Elena has the chance to pay business expenses in euros, for example, when traveling or making online purchases, she can use this bank account to access her funds.


If Elena needs to convert her euros to dollars, she’ll pay her bank’s exchange fee and exchange rate. But there are online international banking options with costs that are less expensive than legacy banks.


Client Profile is based on a hypothetical situation. The solutions we discuss may or may not be appropriate for you.


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