How to use QuickBooks multicurrency capabilities to take your accounting practice global

Expand your business horizons and conquer international markets with ease as QuickBooks empowers you and your clients to seamlessly navigate multiple currencies.

In an increasingly global world, a growing number of accountants and bookkeepers are developing portfolios of international clients. Being able to effortlessly transact with clients in many different currencies delivers a huge range of benefits, including greater accuracy, better flexibility and improved customer service.

This was a laborious process in the past, with accountants and bookkeepers often manually converting transactions into different currencies when they were working with cross-border businesses. It was time-consuming and potentially error-prone.

That’s all changed thanks to QuickBooks Online Accountant’s multicurrency features, which make it simple to do business in a range of different currencies.

Getting started with QuickBooks multicurrency

It’s easy to set up QuickBooks’ multicurrency capabilities. All you need to do is:

• navigate to the Edit menu
• select Preferences
• select Multiple Currencies
• click on Company Preferences
• check the box that says Use Multi-Currency
• click OK

Then, you will need to choose the currencies you want to use in QuickBooks:

• go to the Lists menu
• select Currency List
• click on New
• select the currency you want to add
• enter the currency code and exchange rate
• click OK

Now you’re ready to create purchase orders and invoices and receive payments in your clients’ home currencies.

Simplified banking

QuickBooks also makes it easy to transact through a multicurrency account. This is a type of bank account you can use to send, receive and hold many different currencies. 

To create and manage multicurrency bank accounts:

• go to the Lists menu
• select Chart of Accounts
• click New and select Bank as the account type
• enter the account name and currency
• click OK

Supporting your global ambitions

With your multicurrency capabilities now set up in QuickBooks, you can start to do business with international clients. Our multicurrency functionality also supports clients with operations located around the world who want to transact in a range of different currencies.

Here’s how it works:

• Invoices and purchase orders: when you raise an invoice or purchase order in QuickBooks, all you need to do is select the currency you want from the drop down menu. QuickBooks will automatically convert the invoice amount to the base currency you have already set up.
• Payments: when you record a payment, QuickBooks’ multicurrency capabilities will automatically convert the amount to the base currency.
• Reports: you can easily run reports on multicurrency transactions. Simply:
• go to the Reports menu
• choose Company & Financial
• select Foreign Currency Translation

Troubleshooting made easy

By their nature, exchange rates fluctuate constantly, so don’t forget to regularly update your rates in QuickBooks:

• go to the Lists menu
• select Currency List
• click on Currency Exchange
• enter the new exchange rate

Importantly, don’t forget to track gains and losses from currency conversions. QuickBooks automatically calculates these for you. But it’s still essential to check them to make sure they are accurate.

Reap rewards

Accounting and bookkeeping practices that take advantage of QuickBooks’ multicurrency features enjoy a host of benefits that make their business more efficient and more competitive internationally.

• They ensure foreign currency transactions are accurate by reducing manual handling and the potential for error.
• They support customer relationships by making it easy for clients based in other markets to choose your practice.
• They enhance financial management and reporting so you can better manage your firm and make sound business decisions.

QuickBooks’ multicurrency functionality is a great way to differentiate your firm, broaden its horizons and enhance efficiencies across the practice. Talk to us today to find out more.