I live in Canada and file my taxes in Canada. I charge in USD and have my Quickbooks home currency in USD with multicurrency on because 90% of my clients are in the US, with some in other parts of the world. The majority of my purchases are also in USD based on the type of business I run. I'm now putting my taxes together and need all revenues and expenses to be in CAN. Is there a way to run a report in Quickbooks that shows you the figures in a chosen currency?
An accountant I was speaking with explained that all my USD sales and purchases need to be recorded with the exchange rate of that particular day. So simply converting on the day I enter the taxes will not be acceptable. I hope this makes sense.
I appreciate you contacting us. I see how it makes sense being able to run a report in a different currency.
At this time, QuickBooks Online can only run reports using the home-currency. I know how important this feature is to you and I encourage you to send feedback to our engineers. You can do this by clicking the gear icon and looking for feedback. New product ideas and improvements are largely based on the feedback we get from other users like you.
Feel free to ask questions. I'm here to help.
So then, if I get this straight, I have to go into each transaction and convert the currency myself? Is there another way I can do this? I talked with someone from Quickbooks when I initially set up the account about which currency I should use because I was charging in USD but I lived in Canada and file my taxes in Canada and everything has to be in Canadain dollars. This was their solution, their recommendation that yes, I should be using USD. This will take me forever to make this type of change. Honestly, not happy.
I hear you on this. Another option I recommend is setting up a Canadian based account and exporting as much info as you can to that account. I'll be happy to walk you through on how to export your data. In case you consider doing that, here are some helpful resources you can use:
Feel free to ask questions. I'm here to help.
So how did you do it last year?
No, I'm still researching phase.
How did you set up your bank account?
"U.S Based" business USD bank account, "Canada Based" Business USD bank account, and "Canada Based" USD credit card ???
I found a lot of people using this way, but not sure how the accounting and bookkeeping works, when you have to pay tax, and yourself.
I don't know if you ever got an answer to your question, but if anyone's coming along I thought I'd share my insight, being in a similar situation (domiciled in Canda, doing business in largely USD).
I created my home currency in CAD - since a fair number of my expenses are still in CAD - so my revenues in USD are converted based on the daily rate.
When converting your values at year end for tax purposes, keep in mind that the government of Canada allows you to either use the daily rate OR their rate for the month. Typically most accountants will run both scenarios to decide which is more beneficial for your business in terms of tax payable outcome.
Hi leebrendalee, thanks for joining the discussion. The abilities regarding the multicurrency tool may depend on the task you're completing. Reports will run in whichever Home Currency has been selected.
I took my total amount in USD and then converted based on the Canadian Revenue's monthly rate. It was not ideal but I was able to check it with PayPal. It's confusing and I wish there was a way to separate between currencies.
Hi Vanessa. Thanks for reaching back out with updates. I'm glad you found a resolution that worked for you, and I can appreciate that this wasn't the ideal solution. Any thoughts or suggestions you have about this can be directed to our product development team by clicking the Gear icon > Feedback. We're always trying to find ways to improve the product.
If you are resident in Canada and your company is registered in Canada, regardless of where you do business and in what currencies, your reporting HOME CURRENCY will always be required to be Canadian. If you set up your home currency under "Account and settings" and then under "Advanced" and then under "Currency" you will set your Home currency as Canadian dollar. Then, as every transaction is recorded, it will be converted at the daily conversion rate from the transaction currency to Canadian dollar, the foreign exchange amounts will be recorded to REALIZED foreign exchange. That way, no matter what date you pull a report your balances will always be reported in Canadian dollar (your home currency). If you also have a USD (or other currency) bank account, then you will be required to do a one-time year-end currency conversion entry using:
How do I create a home currency adjustment?
It's always a good idea to check with an accounting professional before entering these adjustments.
Make sure to set your "date" in #5 to your year-end date (ie. Dec 31, 2020). This will revalue your bank account and any other USD-based accounts at that date and the foreign exchange difference will be recorded to UNREALIZED foreign exchange gain/loss.
Hope this helps! :)
From a Chartered Accountant based in Canada