Most pre-Series B companies with multi-currency revenue do nothing about FX. They convert at spot when cash needs to move, take whatever the bank quotes, and absorb the variance into operating margin. There's a better default that doesn't require hiring a treasurer.
Step one: stop using your bank for FX
Wise, Airwallex, Revolut Business, and similar platforms offer mid-market rates with a transparent margin (typically 25–50 bps) versus the 150–300 bps high-street banks charge. On £2m of annual conversion, that's £20k–£50k recovered with no operational change.
Step two: natural hedging
Match currency of revenue to currency of cost wherever possible. US revenue paying US payroll, UK revenue paying UK costs. This eliminates conversion entirely for that slice of the business and removes the need to hedge it.
Step three: forward contracts for known exposures
- Lock the FX rate on contracts with 90-day+ revenue visibility.
- Hedge 50–70 percent of forecast exposure, not 100 — leave room for forecast error.
- Use rolling 3-month forwards rather than long-dated swaps until you have a CFO who can justify the complexity.
None of this requires a CFA. It requires deciding the policy once, writing it down, and reviewing it quarterly.