Multicurrency Exchange Rate

Hello again, @pezza.

Thanks for sharing such detailed information. It gives me an overview on how to help you handle your transactions in QuickBooks.

Based on the information provided, the Multi-currency feature will help you manage them. Just a heads up, this feature is only available in the Essentials and Plus version.

If that’s your current subscription, let me walk you through the process of activating it.

Here’s how:

1. Go to the Gear icon at the top, then select Account and Settings.
2. Choose Advanced on the left panel.
3. Click on the Pencil icon for Currency, then select Home Currency.
4. Mark the box for Multi-currency.
5. Click on Save and Done.

Since you’ll be accepting Euro and Pounds, make sure to create these customers and banks in QBO. This will help you efficiently track transactions for each currency.

To add customers:

1. Go to Sales on the left panel, then choose Customers.
2. Click on the New customer button.
3. On the Customer information window, enter the information for your UK agency/ EU client.
4. Click on Save.

To add the foreign currency accounts:

1. Go to the Gear icon at the top, then choose Chart of Accounts.
2. Click on New in the upper-right hand.
3. Choose the correct Account and Detail Types.
4. Enter the account’s name in the Name field.
5. Under Currency, click on the drop-down and choose GBP British Pound Sterling/EUR Euro.
6. Click on Save and close.

After setting them up, you can now create invoices and accept payments in Euro. Once done, transfer the funds from your EU account to the GBP bank.

In regard to your other question, you don’t have to create another expense account for each currency because the amounts recorded in QBO are based on the home currency, and it goes the same way on your reports. However, you can run the Balance Sheet report to check the data for each currency.

The information I provided should point you in the right direction.

If you have additional questions about QBO, reach out to me by posting a comment below. I'm here to assist you further.