Chris Rauen

There are three main types of foreign exchange risk, also known as foreign exchange exposure: transaction risk, translation risk, and economic risk. A fourth – jurisdiction risk – arises when laws unexpectedly change in the country where the exporter is doing business.

When the economy slows, efficiency and cost control gain even more attention. And there’s no better business process to streamline than accounts payable.

SWIFT (Society for Worldwide Interbank Financial Telecommunications) is a global member-owned cooperative that functions as a huge messaging system.

Procurement software automates a broad range of activities relating to business purchasing. An umbrella term often used to address the scope of coverage is spend management.

With real time payments, the payee’s account is credited immediately, and the payer is instantly notified about the status. With a paper check, however, a payee could delay cashing it, leaving the payer with an unreliable cash balance and the potential for writing bounced checks. RTPs eliminate that.

Closing the books each month can be a tedious process, but it is vital to ensuring the financial health of your company. The month-end close can help you identify deviations from your financial plan early, so you can respond quickly. Conversely, it can uncover new opportunities for business growth, and drive strategies so you can exploit them.

A procurement strategy is the blueprint for implementing a procurement process. It considers everything from building a supply chain, the systems for initiating and tracking purchases, managing costs and risks, and evaluating results.

Net 30 is a common payment term for businesses selling to other businesses. It means you are giving your customers and clients 30 days, including weekends and holidays, to pay an invoice. 

Many organizations struggle to grow their business. Why? Often, they can’t generate enough cash from their operating cycle. This forces them to take on debt such as a bank loan or raise equity from outsider investors if feasible to finance the working capital they need for expansion.

Sourcing and procurement are complementary business processes that offer compelling value to any business with multiple product lines or growing sales. To realize that value requires support for both activities.

CFDI, is an electronic invoice format mandated in Mexico and also used in certain Latin American countries. It serves as a digital tax receipt that provides all the details of a business transaction: the goods or services provided, their costs and calculated taxes. 

Invoice factoring is a financing option where you sell some or all of your outstanding invoices, or accounts receivable, to a third-party to improve your cash flow. The third-party factor will charge a fee, also known as a discount, for providing the service.