The technological advancements and the ever-expanding eCommerce sector has truly globalised shopping for people. Consumer buying behaviour is gradually changing, and more people rely on online shopping now than ever before. EMarketer estimates that the global eCommerce business in the current year has crossed a value of $3.914 trillion. Hence, it is a golden opportunity for companies to go global and transform the trajectory of their business growth.
The fundamental thing companies must do to maximise their international sales is to offer a shopper-friendly and more localised shopping experience to their users. Customers are more likely to shop from your store if they are given their preferred currency, payment methods, and language. So make sure to incorporate an eCommerce wholesale billing software to your business that supports the use of multi-currency for better sales growth.
What is Multi-Currency Software?
Source: Freshbooks
Multi-currency software is a specific kind of accounting software that is mostly used for recording profits and liabilities in a base currency after analysing all the transactions made in the global currencies. The multi-currency system keeps track of exchange rates and applies those rates at the time of a transaction.
Moreover, it automatically converts prices for purchased and sold goods from its base price to the foreign price and vice-versa. The software also helps you keep the ledgers complete and accurate. On the contrary, if you are on the consumer side, the software will convert the prices of the products according to your preferred currency. It eases the process for the consumer and encourages them to shop more from your store.
Key Features of Multi-Currency Software
Some of the essential features that the best invoicing software having multi-currency support are as follows:
-
Assign Currencies
The primary use of the software is to allocate specified currencies to the vendors, clients, bank accounts, and credit cards. The software then handles taxes, rounding regulations, and exchange rates based on the 3rd party’s domestic currency.
-
Currency Exchange Translator
The software helps you view payable accounts and receivable accounts in your base currency as well as in the foreign transaction currency. Calculations are automatically made in accordance with the current or assigned exchange rate. Besides, it offers you to check the exact exchange rate at any time.
-
Financial Reporting
Source: Bisiness.lovetoknow.com
This is an essential feature of the software in which it keeps a record for the primary set of books for the domestic or the base currency. It also maintains transaction and account balances for different accounts in multiple currencies. Apart from that, the software generates general ledger reports and performs online inquiries for the users.
-
Rate Exchange Tracker
A crucial use of the software is that it records and stores the precise times and dates of currency exchange rates. This data comes handy in the auditing process, where the exchange rate calculation is compared against public exchange rates.
-
Transaction Tracker
The accounting multi-currency wholesale software also stores the data for the transactions made, settlements and accounting period endings. This again comes useful in the auditing process for checking ledger entries against public entries.
-
Bank Reconciliation
Bank reconciliations play a major part when working with foreign currencies. Any foreign currency that you are handling needs to be first reconciled in that bank’s local currency. Therefore, the multi-currency software logs the exchange rate during reconciliation. Then it calculates the currency based on the given rate, and further, reconciles with the assigned third party or foreign currency.
Challenges Businesses Face Without Multi-Currency Software
It is no surprise that multi-currency wholesale billing software eases your workflow and provides you with multiple conversion opportunities. However, let us discover what you are missing out on, if not leveraging the use of this magnificent software.
Ever-Changing Exchange Rates
International exchange rates consistently fluctuate. When a user regularly buys a product from your store and pays in his local currency, every time the price may differ due to currency fluctuations.
The user may have to buy the same product with a different price tag every time, which may bring irregularities in the account value of the user. The difference might be minute in B2C transactions, but when dealing with B2B wholesale transactions, the difference can be of a significant value.
Conversion Fees for the Foreign Currency
When you shop online from a global company, one of the most annoying things is the excessive conversion fees for that transaction. Depending on your bank provider, this fee may vary and can go up to 5%.
Despite the high conversion fee, users often get irritated due to lack of information on this fee while purchasing the goods. A multi-currency software can present you the conversion fees of your order right there in your shopping details. Hence, making the process easier for the user.
Shopping Cart Abandonment
The shopping cart abandonment rate for an online store averages anywhere between 68% to 75%. Among these numbers, twenty-one per cent of the customers abandon the cart because they find it extremely hard to calculate the total order cost up-front.
If you embed the multi-currency software to your pricing page, the process will become more convenient for the user. In return, you can earn from the products that customers abandoned.
Benefits of Using Multi-Currency Accounting Software
Multi-currency software automates several error-prone and time-consuming procedures for conducting international business. It also provides higher flexibility both to the vendor and the client to carry their operations effortlessly. Let us look at some of its other perks and benefits.
-
Efficient and Error-Free Auditing
Auditing is one of the most stressed procedures of all time. Checking the values and matching them with reports takes a plethora of time and an extremely high level of attention. However, with multi-currency wholesale billing software, keeping track of complex ledgers, AR, AP, and other accounts becomes effortless.
Also, the software can provide you with an audit trail with every little detail of the transactions. This helps in figuring out which values derived from where.
-
Reduce Operational Costs and Saves Time
Leveraging the use of multi-currency software, the operational costs of the company can be highly reduced. The software can more accurately do the work of several people in a much lesser time frame.
Features such as built-in exchange rate calculators hugely lower the need to research, calculate, and input values manually from the transactions. By automating all these functions, plenty of time can be saved and utilised for other important things.
-
Real-Time View of the Company’s Finances
A multi-currency software always keeps you updated on your current financial position. You can evaluate the value of your base currency against the currency of your international clients.
Additionally, you can view your company’s credits, cash flows, and liabilities with more transparency and precision. These insights can help you make a more informed and wise decision for the future of the company.
Summing Up
A multi-currency wholesale software can be of an immense value for your organisation. It can open up numerous global prospects for the growth of your business. It not only eases the work process but also helps in analysing crucial insights into your business. A multi-currency software can also be integrated into your current ERP software. You may refer to our OrderCircle experts for more detailed information and a quotation for the best multi-currency invoicing software for your organization.