The web provides plenty of alternatives to get exchange rates. In some cases you can even manage to obtain a free exchange rate API.
Why would you need an API? The most common use cases include currency conversion for reporting purposes, financial reconciliation, pricing, as well as app development.
This is really a no brainer: you don't want to incur in the risks associated with manual input of exchange rates, like typing the wrong value in a financial statement or having your digital product display the wrong price to all your customers online. Automation is the way as it guarantees that exchange rates will flow into your systems directly from their source.
So what do you do? You google "free exchange rates API" and boom! So many options to choose from. But are these truly viable options? Can you trust these sources to run your business with confidence in your numbers?
Here's a 3-step approach to understanding which data sources to trust:
- Ask your auditors, they know what is a professional-grade rate that you can use for your business.
- Check the provider's fine print and learn how they come up with those rates. You need to know where the rates are coming from and how they are constructed. If you don't care, your auditors or customers will.
- Look for providers that integrate with your ERP, e-commerce, treasury or HR platform.
Need more help in identifying a reliable professional-grade rate provider? Contact us.
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