Taking your U.S. business global? Congrats on growing your business beyond borders!
Expanding your business into new countries and localities is exciting, but can be daunting. QuickBooks can help by tackling one of the most common challenges international business owners have: tracking and managing multiple currencies.
Now, with the QuickBooks multicurrency feature1, you can:
- Assign a currency to customers, vendors, banks, and credit cards.2
- Track and manage currency exchange rate fluctuations. QuickBooks downloads exchange rates every four hours from WOSD (Wall Street On Demand). You can also manually enter exchange rates and revalue them, if needed.
- Pay and receive payments in a vendor’s or customer’s currency.
- Revalue a currency.
Here are a few basics on using the multicurrency feature in QuickBooks.
Is multicurrency right for your business?
Multicurrency may be right for your business if you have financial transactions in more than one currency. For example, you may want to use the multicurrency feature if your business is in the U.S. where your home currency is the U.S. Dollar (USD) and you have customers and vendors in Canada who use the Canadian Dollar (CAD).
Turn on multicurrency
Remember that once you turn on multicurrency:
- You can’t hide or turn it off in QuickBooks.
- You can’t change your home currency.
- Click the Gear > Company Settings > Advanced > Currency.
- Select the Multicurrency checkbox.
- Select the “I understand I can’t undo Multicurrency” checkbox.
- Click Save.
What happens when you turn on multicurrency
- Your current currency becomes your home currency, which is the currency of the country where your business is physically located.
- A Currencies list appears in Gear > Lists, where you can see a list of currencies used and their exchange rates, and add new ones. QuickBooks Online handles exchange rate updates automatically, although you can override a rate if you need to.
- When you add a new customer or vendor, you can choose their currency.
- A currency column appears in the Chart of Accounts.
- On bank and credit card registers, the currency appears in brackets for the Payment, Deposit, Sales tax, and Balance Due columns.
- On sales and purchase forms, the currency appears in brackets for the Amount column.
- Reports convert all foreign currency to home currency amounts, and automatically track exchange rate changes.
View and manage currencies
View and manage your currencies in the Currencies list at Gear > Lists > Currencies (under Lists).
The Currencies list shows your home currency and any foreign currencies you’ve added, along with the current exchange rate and the date it was last updated. From this list, you can add a currency, edit a currency exchange rate, and revalue or delete a currency.
Add a foreign currency
- Click the Gear > Currencies > Add currency.
- Select a foreign currency from the list and click Add.
The new foreign currency appears at the bottom of the list.
Add a foreign currency account to your chart of accounts
You may want to create a separate account that you use for foreign transactions in a particular currency.
- Click the Gear > Chart of Accounts > New.
Enter a meaningful name and description to prevent confusion with a similar home currency account.
- Select the foreign currency for this account from the Currency list.
You can’t add a foreign currency accounts receivable or accounts payable account. These accounts are created automatically the first time that you enter a foreign currency sales or purchase transaction.
Add a customer who uses a foreign currency
When you add a new customer, you can select the currency the customer uses to pay you.
- Click Customers > New customer.
- Select the Payment and Billing tab.
- In the “This customer pays me with” field, select the customer’s currency.
You can also use QuickAdd on a sales form to add a customer who uses a foreign currency. To do so, click Add New in the Customer field of an invoice or sales receipt and fill in the required information. Select the currency the customer uses to pay you.
Add a vendor who uses a foreign currency
When you add a new vendor, you can select the currency that you use to pay the vendor.
- Click Vendors > New vendor.
- In the “I pay this vendor with” field, select the vendor’s currency.
You can also use QuickAdd on a bill, check, expense, or purchase order form to add a vendor who uses a foreign currency. To do so, click Add New in the vendor field of transaction and fill in the required information. Select the currency you use to pay the vendor.
Make a home currency adjustment
Home currency adjustments3 change the home currency value of your foreign balances. These adjustments affect your balance sheet accounts. We recommend that you work with an accounting professional before entering these adjustments.
- Multicurrency is available in QuickBooks Essentials and QuickBooks Plus. If you migrated from QuickBooks desktop to QuickBooks Online, you won’t see multicurrency right now, but it’s coming!
- Income and expense accounts always use your home currency; accounts receivable and payable are automatically assigned.
- Need more advanced information? If you’re an accountant with multicurrency clients, or you just want to know more about how to manage multiple currencies in your business, including home currency adjustments, check out the Intuit Accountant Blog article about multicurrency.
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While we would love to answer all your questions, the blog isn’t managed by customer care staff (only a lone blogger whose side gig doesn’t use foreign currencies). Your fastest options to get technical support are listed on our Links page, under “Get help and give feedback.”