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In this episode, Aishat discusses her experience at the Problem Solving for Painful Payments Roundtable, focusing on key accounting challenges faced by international charities.

She does a dive into a common financial challenge faced by international NGOs - managing multiple exchange rates when handling expenses and donor funds and shares a practical solution that can simplify reporting and reconciliation: the Weighted Average Exchange Rate (WAER).

KEY TAKEAWAY

• Exchange rate fluctuations can complicate accounting
• WAER helps standardize conversions, making financial reporting and reconciliation easier.
• WAER is particularly useful in two key scenarios:
  • When field staff convert currency at different rates during trips, creating multiple exchange rates for expenses.
  • When donor funds are received in multiple tranches at varying exchange rates, impacting financial reporting.
• WAER simplifies accounting by averaging exchange rates – Instead of tracking every individual conversion, organizations can use a single calculated rate for consistency.
• Exceptions exist – Some donors may require a fixed exchange rate, in which case WAER may not be applicable.

EPISODE RESOURCES

Ebury: https://ebury.com/

ABOUT YOUR HOST

Aishat operates her own bookkeeping and accounting services practice – BAnC Services which focuses primarily on serving non-profits. Before founding her practice, she dedicated over two decades to the non-profit sector.

With her podcast, Aishat shares practical insights and expertise to streamline financial management for non-profits; and shines a light on the often unseen & unheard efforts that uphold the delivery of a non-profit’s mission.

Beyond her professional endeavours with non-profits, Aishat is deeply committed to supporting single mothers with navigating financial management challenges and is the author of "Money Solutions for Single Mums". She also champions financial literacy among young black adults and thrives in discussions about money management.

Work with Aishat: www.bancservices.co.uk

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