My company (a Canadian company) bank accounts include both Canadian and US dollar accounts. Year-end balance sheet is reported entirely in Canadian dollars .... but the US bank account amount ($34,xxx USD$) is reporting as over $70,xxx CDN$. This is not correct - and the CDN equivalent should be closer to $42,xxx CDN $ based on exchange rate at year-end date. This indicates some ongoing problem with the exchange rate (provided by Quickbooks) over the course of the year. My auditor wants me to adjust the Balance Sheet amount on the US account without changing the actual US$ amount on the bank account line. I do not know how to do this. Can it be done?
Thanks for reaching out here. It's important that you're able to provide the requested information to the auditor with peace of mind. I'd be happy to point you in the right direction so you can complete you're on the right track with your work!
Based on the information you've provided, I recommend reaching out to your accountant for the best course of action to ensure a positive outcome on your books. If you don't have an accountant, we can help you locate a ProAdvisor in your local area.
Feel free to reach back out if you have other questions. We'd be happy to help!
I have so far spoken with two Pro Advisors - neither one of which knew the solution to my problem. I need to figure out how Quickbooks determines the exchange rate when it produces financial reports - such as a Balance Sheet. The results I am getting are way out of whack with current exchange rates.
Try using the currency revaluation function.
Click on the gear > Currencies > Down arrow beside Edit currency exchange for USD > Revalue Currency > Revalue date for your period end date > Revalue and save.
Once done, the trial balance should reflect correctly. Be sure to uncheck "Show unrealized gain or loss" when running the Balance Sheet, A/R summary and A/P summary.
Thank you A-Cue for the assistance. Were your instructions specific to Quickbooks Online? I am using Quickbooks Desktop (Premier), and I can not find any "gear" (icon?), or "Revalue Currency" function. I find access to currency edits via the Lists>Currency List, OR via the Company>Company Manage currency menus.
In both cases there is no "Revalue" function visible that I can find. I can generate both "Realized" and "Unrealized" gain/lost reports, but these are separate from the Balance Sheet report(s).
Ah, my apologies. Yes, they were specific to online.
I believe in QBD, you have to do the home currency adjustment... List > Currency list > Activities > Home currency adjustment...