Recruiter's Glossary

Examples: Transfer Pricing • ROE • ROI

Foreign Currency

Term from Accounting industry explained for recruiters

Foreign Currency refers to money used in countries other than your own. In accounting roles, this involves tracking, converting, and recording business transactions that happen in different currencies. Think of it like translating money from one language to another - when a US company does business with a European company, they need someone who understands how to handle euros converting to dollars. This is important for international business, and accountants need to know how to properly record these transactions, manage exchange rate changes, and follow special accounting rules for dealing with money in different currencies.

Examples in Resumes

Managed Foreign Currency transactions worth $5M annually for international clients

Implemented Foreign Currency exchange policies that reduced conversion losses by 15%

Handled monthly Foreign Currency reconciliation for operations in 12 countries

Supervised Foreign Exchange compliance and reporting for multinational accounts

Maintained Forex risk management strategies for international transactions

Typical job title: "Foreign Currency Accountants"

Also try searching for:

International Accountant Foreign Exchange Specialist Treasury Accountant Financial Controller Global Finance Manager International Finance Analyst Multi-currency Accountant

Where to Find Foreign Currency Accountants

Professional Associations

Online Communities

Job Boards

Example Interview Questions

Senior Level Questions

Q: How would you manage foreign currency risk for a company expanding into new international markets?

Expected Answer: A senior professional should discuss different hedging strategies, setting up proper controls and procedures, monitoring exchange rates, and implementing reporting systems to track currency exposure. They should also mention working with banks and establishing international banking relationships.

Q: How do you handle year-end foreign currency translation for consolidated financial statements?

Expected Answer: Should explain the process of converting subsidiary accounts to parent company currency, handling translation adjustments, and ensuring compliance with accounting standards. Should mention the difference between current and historical exchange rates.

Mid Level Questions

Q: What steps do you take to reconcile foreign currency accounts?

Expected Answer: Should describe the process of matching transactions, adjusting for exchange rate differences, ensuring proper documentation, and investigating discrepancies. Should mention using bank statements and accounting software.

Q: How do you record foreign currency gains and losses?

Expected Answer: Should explain how exchange rate changes affect transactions, where to record gains/losses in the books, and basic journal entries needed. Should mention the importance of timing and documentation.

Junior Level Questions

Q: What is the difference between transaction and translation exposure?

Expected Answer: Should explain that transaction exposure relates to specific business deals in foreign currency, while translation exposure happens when converting foreign subsidiary financial statements to home currency.

Q: How do you convert a foreign currency transaction to local currency?

Expected Answer: Should be able to explain basic currency conversion using exchange rates, knowing when to use spot rates vs. average rates, and where to find reliable exchange rate information.