Payroll and Expense Management Index Introduction Expense Management

Payroll and Expense Management

Index Ø Introduction Ø Expense Management Ø Payroll Ø Summary

Introduction

Expense Management

Key points Ø Resource Struggle processing payments Ø Speed Urgent payments at any time Ø Coverage Receiving incorrect sums Ø Price Currency fluctuations Payment charges Unwanted deductions

Good practices Ø Robust operational processes and supporting technology Ø Local (ACH) delivery increases reliability and reduces cost Ø Sanction screening & algorithmic checks Ø Penny tests Ø Cut off times Ø Send correct currency Ø Treasury management

Currency tools Ø Spot contracts – buy or sell currency at today’s foreign exchange rate Ø Forward contracts – secure today’s rate of exchange for use on a future payment date to protect from adverse rate fluctuations (hedging) Ø Market orders – an instruction to buy or sell currency when a pre-agreed rate is achieved. A flexible way to make the most of volatility Limit Order: sits above the market Stop Loss Order: sits below the market

Currency tools Ø Spot contracts – buy or sell currency at today’s foreign exchange rate Ø Forward contracts – secure today’s rate of exchange for use on a future payment date to protect from adverse rate fluctuations (hedging) Ø Market orders – an instruction to buy or sell currency when a pre-agreed rate is achieved. A flexible way to make the most of volatility Limit Order: sits above the market Stop Loss Order: sits below the market

EU Referendum: June 23 rd 2016 Ø Payroll with $2. 3 m monthly GBP/USD exposure Ø Placed a Stop Loss Order to protect against downside risk Ø Order triggered overnight at a rate of 1. 45 Ø When the payroll was run 2 days later, the same amount of Dollars would have cost £ 169, 518 more

Payroll

Key points Ø Operations Nimble processes Ø Speed Payments to arrive on time, in full, every time Ø Capabilities Blended payment solution Ø Security “Credible” counterparty and supply chain Ø Know how Complex local tax payments Changing payment requirements

Good practices Ø Harmonize Payroll & Treasury functions Ø Due diligence along entire supply chain Ø Equip yourself with the appropriate expertise

Summary

Summary

Thank You e: nat. davison@frontierpay. com t: +44 (0)1494 484 183