Always plan for the future when invoicing foreign clients.
Challenge: Fluctuating exchange rates increased costs and complicated paperwork
Solution: Online payments platform and future payments
Results: Cost savings and improved invoicing efficiency
Managing the currency markets
Intellectual property matters often span the entire globe. Lawyers at Angelo IP utilize a network
of foreign associates to help file and prosecute patent applications around the world. Due to of the nature of this work, the team regularly handles the payment of foreign invoices for clients. Their billing process was complicated and inefficient.
Prior to engaging Convera, the team would send clients a proforma for an invoice payable in a foreign currency based on the day’s exchange rate. However, once the foreign invoice was actually paid, often 30 days later, the exchange rate would be different. The change
had to be noted in the accounting system for each instance and due to the number of clients, filings and currencies, the manual effort quickly became overwhelming. Additionally, the exchange rates used for billing by the firm were not optimal.
The situation faced by Angelo IP is a common one. Intellectual property law firms typically issue and pay invoices to parties in multiple jurisdictions and because exchange rates shift daily, system adjustments are necessary to maintain accurate billing records.
Angelo IP recognized a need for automation in terms of invoicing and began looking at ways to reduce foreign exchange exposure in order to improve invoicing efficiency.
In order to address the firm’s major concerns regarding manual invoicing and foreign exposure in a single solution, the Convera team recommended the use of GlobalPay for Law Firms, an online payments platform with the ability to utilize future payments. Essentially, the legal staff can now enter foreign proforma invoices into their system and lock-in the day’s exchange rate for up to 8 months. Once the client submits their payment, the firm can then pay external foreign associates while knowing their final cost in advance. Their exchange rates have been an improvement from their previous provider.
Cost savings and reduced administration
The integration of digital payments platform GlobalPay for Law Firms means Angelo IP is now able to manage their payment process with increased ease, accuracy and at a lower cost. The partnership ultimately provided benefits which exceeded the expectations of the firm. The platform addressed their original concerns with excessive paperwork, and establishing future payments allowed for predictable exchange rates. The resulting cost saving was an unexpected bonus for the firm.
Basil M. Angelo, Founder & CEO of Angelo IP, explains, “While it is easy to appreciate how this simplifies our process and saves the attendant expense, we have also saved a substantial amount of money in the exchange rates that Convera provides when paying foreign associates in their local currency. Their exchange rates are better than our bank offered. I would recommend Convera as its service has become a mission critical part of our international practice.”