Begin by converting all your receipts and transactions as you go. Do all your large-scale accounting in one currency. Sum up all receipts and receivables in your business’ base currency. Next, master more advanced conversion techniques by summing up receipts and receivables for each currency separately. Then execute a single hedge for each currency in your portfolio. Finally, implement FX exposure netting. Hedge functional currency pairs together. Over time, this greatly reduces your risk.
Image Source: 401(K) 2012