Working from UK - client in Australia

[Limited]

My co is looking at doing some work for client in Australia. They would like the price in US$.

Anyone done anything similar? How should I invoice this - convert to GBP on invoicing?

Presumably don't need to consider work permits or anything like that if just selling some services from over here.

My standard T+Cs are all governed by English law so I guess I don't have to think about that. Anything else I've missed?

thanks

[NotAllThere]

If you've agreed with the client that it's US$, then you invoice in US$. If you have a USD account, then they can pay direct into that. Otherwise, your bank will convert it to whatever the currency of the account is. Not necessarily at a very good rate though.

[Limited]

thanks

its all up for discussion with the client but I guess it would be better for me to quote in GBP. I think they have been stung by a strong pound in the past and a bit nervous about that. So does it sound sensible if I agree to quote in US$ but convert to pounds at invoicing or is that just too complicated?

[Sockpuppet]

You can quote in $US but that is what they will hold you to.

I wouldn't expect them to pay anything other than $US.

E.g. if the exchange rate is 1 US$ to 1 GBP and you quote 1000US$ you are going to cost them a lot more if the exchange rate goes to 0.5 - 1 and you convert it to now be £2000 instead of £1000.

If you quote in USD that is what they will pay.

[Platypus]

thanks

its all up for discussion with the client but I guess it would be better for me to quote in GBP. I think they have been stung by a strong pound in the past and a bit nervous about that. So does it sound sensible if I agree to quote in US$ but convert to pounds at invoicing or is that just too complicated?

No, just send them the invoice in US$. They pay US$. Wait and see how many pounds you receive once the currency exchange has been done and enter that amount in £ in your accounts.

[Ardesco]

Are you sure it's not AUD?

Seems strange to refuse to pay in GBP because of fluctuations in currencies and then want to pay in USD instead.....

[Peoplesoft bloke]

Be careful. When I was a permie, we worked for a US client in the UK on this basis. We thought we'd worked out a decent rate even allowing a sensible rate for contigency. The cleint then delayed then stalled the project in the middle meaning it went on longer than planned - we had no choice but to go along with it - alternative was nothing. By the end we were being crippled by a high dollar and our final few months we ended up making close to zero profit.

If it's a quick job, obviously you won't be so exposed.