UK Business - is it better to bill in GBP or Euros

[Pheel]

Hi - my business is a UK based consultancy, but am now having to work more in Europe, Germany to be specific.

How do i best minimise my FX exposure with invoicing? Is it best to invoice in Euros or GBP? should i open a Euro business bank account?

any advise would be greatly appreciated!

cheers

[elainec100@cheapaccounting]

To eliminate exchange exposure invoice in gbp. To minimise open a euro account.

[Pheel]

thanks Elaine - what's the protocol for invoicing in Euros - do you state the GBP equivalent to be paid? or do you just take today's rate? my payments terms are 30days

[elainec100@cheapaccounting]

What does your contract say?

[Pheel]

It doesn't ?!?

[elainec100@cheapaccounting]

Well then bill in GBP!

[KidsBeeHappy]

Invoice in how you want to be paid. if you invoicing in one currency and converting into another you're loosing out. If you want to keep a euros bank account with a balance then invoice in Euros.

If you invoice in £ your customers bear the FX risk, if you invoice in Euros you bear the risk.

[itaufait]

Incidentally, have a look at http://www.fxcentre.co.uk/uk/trendsshow.asp?0101200210062008GBPEUR if you are still thinking.