Using Multicurrency in QuickBooks Online
When setting up your QuickBooks Online account for your business, you may have noticed the option to turn the multicurrency feature on.
The only reason I would recommend using this feature is if you bill any of your clients or customers in any other currency besides Canadian Dollars.
Here are some things to remember when using multicurrency:
- Make sure that you really need this feature before turning it on as once it is on, QuickBooks does not allow you to turn it off.
- When you want to add a customer or supplier in a foreign currency, you will need to choose the currency that you will be billing or paying them in before you click ‘Save’ as you can’t change their currency after they have been added.
- When you Invoice a customer that is set to a foreign currency, you will notice that QuickBooks has an exchange rate noted in the top left-hand corner, you can adjust this to a rate of your choosing if needed.
- Your financial reports will show all your income and expenses in Canadian Dollars, so anything you have entered as a foreign currency will be shown as the converted Canadian amount using the exchange rate mentioned previously.
- Any gain or loss from the exchange will be automatically added into the ‘Exchange Gain or Loss’ Other Income account.