How Real-Time Currency Tools Help Aussie Companies Work Smarter

With robust logistics and the Internet making it easier to conduct trade and commerce across borders than ever before, more companies gear their operations outwardly and seek to expand their reach beyond their base’s four corners. 

Many Australian companies are no strangers to this, as while the region is vast, its market scope is limited to just a few cities and towns. Compared to the billions of potential consumers worldwide, there’s an untapped opportunity when local businesses choose to cater to the international market.

To top it off, their land’s rich resources and skilled talent can fill many gaps in the world’s global economy. However, Australia’s isolated geographical location from major trading hubs also calls for the need for more agile tools to help Aussie businesses stay competitive in the global market. 

All that said, one industry plays a central role in allowing Australia (and the entire world) to trade with other nations: foreign exchange. 

Australia deals with Australian dollars, and that currency can fluctuate against other currencies like the US dollar and the Euro in the face of a constantly evolving world economy. These shifts can directly influence profit margins, making it crucial for company leaders to be aware of day-to-day fluctuations to maximise their profitability.

Fortunately, there is a solution, and that is real-time currency tools. These platforms equip Aussie companies and executives with the information and features they need to make better and more data-driven plans and decisions in a globally connected marketplace. 

If you’re curious to know how these tools can be so empowering for an Australian business, then read on. We’ll get to the heart of the importance of real-time currency tools for Aussie businesses, both big and small, in this article. Let’s get started!

What Are Real-Time Currency Tools and What Are They Used For?

Real-time currency tools, like OFX, are digital platforms that show the value of multiple global currencies in real time.

These platforms offer real-time updates on currency values, allowing users to view accurate exchange rates instantly. This is much faster and more precise than relying on traditional bank rates, which are often delayed and may include hidden markups.

These tools are helpful not only for individuals looking to change their currency at an optimal timeframe, but also for businesses looking to pay suppliers, bill clients, or exchange currency when the market timing favours them. 

Moreover, real-time currency exchange tools also provide a host of features to users to make managing multiple currencies easier. They can hold and convert currencies however they wish, automate recurring international payments, and even set up alerts or schedule transfers when certain conditions are met. 

In essence, real-time currency tools provide users with accurate and timely data to help make financial forecasting easier at both the individual and business levels. In turn, this can help Aussie individuals and businesses make smarter decisions when navigating the dynamic global markets.

Benefits of Real-Time Currency Tools to Australian Businesses

Now that you’re aware of the function of these currency tools, let’s explore four useful benefits of utilising real-time currency tools when running an Australian business in more depth.

Grants Businesses Enhanced Transparency and Currency Control

One perk of real-time currency tools is the improved level of transparency they have over traditional means of currency value tracking. 

Typically, banks do list out their own currency price indicators, but these values are updated periodically (not live) and include charges that eat away at the actual amount.

On the other hand, many real-time currency tools provide a breakdown of the exchange rates and fees they’re charging you on top of the currency value updated in real time.

For instance, if you want to trade AUD to Euros, then trading in a proper software allows you to see the actual value of the currency and the markup associated with it, usually as a percentage of the amount you’re trading. Transfer fees may also be shown before the trade. Withdrawal fees may also be shown before withdrawing the amount.

Having this level of control allows businesses to make more accurate business decisions and know exactly what they’ll be getting. 

This transparency also allows payments and other pertinent business decisions to be made more accurately, making it easier for Aussie businesses to handle their cash flow and navigate the global business landscape more strategically.

Simplifies Global Operations and Payments

Real-time currency tools help make operating at a global scale easier (and cheaper) by granting businesses the ability to centralise all their currency in one platform. This enhanced level of consolidation in one account reduces the need for businesses to rely on slow bank transfers and expensive intermediary services.

With these tools, businesses can send payments and receive funds from international clients more easily online. For instance, if you’re an Aussie-based tech company and serve a global audience, you can accept payments made in USD, GBP, and other currencies and have them all flow through your currency management software.

In essence, a centrally-managed currency software allows businesses to scale their operations beyond Australia more smoothly and cost-effectively. In turn, this can help create more opportunities for business growth and expansion, provided that the logistics and offering of the business resonate with the customers as well.

Enables Businesses to Make Favourable, Time-Sensitive Decisions

Foreign currency values can shift rapidly and unpredictably. While the upswings and downswings aren’t typically as volatile as other asset classes like stocks or cryptocurrencies, these price shifts can still add to or chip away at the cash you’re receiving or spending.

At a small, individual scale, the difference may seem negligible, but if you’re converting hundreds of thousands of Australian dollars in a single transaction, timing can mean gaining or losing hundreds or thousands of dollars.

Real-time currency tools provide information in real time to aid business decision makers on the optimal time to convert their currencies. These global markets can change fast, and these tools can do a number of things to help businesses take advantage of these changes. 

For instance, these tools can execute conversions when prices meet a certain level pre-set by the user. Moreover, if the user prioritises pricing stability, these platforms also allow users to lock in prices that they’d like to trade in for the future by signing an agreement to forward contracts. 

In any case, Australian businesses benefit from the flexibility of having accurate and real-time data on current conversion rates. This, in turn, allows businesses to make strategic responses and decisions to ensure that they’re making the most financially sound decisions in the international commerce scene, namely when a business wants to convert its profits from USD to AUD or vice versa.

Streamlines Multi-Currency Conversions in a Single Platform

Another perk of real-time currency tools is their ability to hold multiple forms of currency in a single user account. 

Typically, with banks, users would need to open multiple foreign accounts corresponding to the foreign exchange of their choice. Not only is this process time-consuming, but in some cases, banks won’t have specific currency accounts available for users to use.

This can be problematic, as businesses may have to shuffle back and forth between different platforms to conduct international trade. Moreover, trading between different platforms can lead to transfer fees that can eat away at the value of the currencies, further reducing maximum profitability.

With real-time currency tools, users can manage and centralise over 30 different currencies into one platform without having to switch accounts or banking providers. Users can access an entire range of features and convert funds equally among the currency types they hold, allowing them to handle their forex portfolio with ease.

Moreover, users can also make or receive payments from stakeholders dealing with different currencies right on this platform. Whether you’re dealing with a foreign supplier or foreign customers, you can store and hold their payments in balances on these platforms without having to make any account switches. 

This cuts down the back-and-forth fumbling from account to account and helps save time, making business activities much more streamlined, efficient, and frictionless.

We hope we’ve clearly laid out the benefits of opting for real-time currency tools for your local business. Best of luck in scaling your venture!