Wednesday, 14 September 2016

Originally posted on Face book as "Financial Planning Tip April 23, 2016 - 001 Becoming Self sustaining in these times"

"If I were running a business, in this age where I can provide services to customers who are willing to pay me in a foreign currency or who are located in another country,   I would open a foreign currency account according to the currency in which I am being paid, according to the service which is being provided and perhaps according to the geographical location of the client.

In marketing and in auditing this is known as dis-aggregating the population, with the population being defined by the funds which I hold in the account!!!! 

This would provide an easy way to track my customers and provide follow up service!!! P.S. It would aid in an comparison of year on year values and customers, fast track the analysis process and allow for documenting changes year on year and perhaps prompt an inquiry into the reasons for changes.

Imagine if I were exporting a service instead of a good then I may not be able to charge VAT on the transaction!!! Of course I may not want the headache of getting items to the airport, too cumbersome!!!"

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