Irish exports were up 6% last July according to the latest CSO data , and more small businesses in Ireland are looking to global markets for business growth. It is for this reason that we have added our new, easy to use multi currency feature to SortMyBooks Cloud Accounting. How important is it to make sure your accounting system can handle your multi-currency transactions? Well, no matter what currencies you are trading in, all transactions have to be converted back to the base currency of the country you are filing your taxes in. Helen Cousins, Xcel Business Solutions says, “It’s very easy to get the basics wrong with multi currency. Although many would be loath to admit doing it, it’s actually quite easy to convert an invoice from Sterling to Euro and do the maths the wrong way around. It can be a little bit of a brain fryer to sort that out, so anything that streamlines the process and especially the maths, is welcome.”
We have made the multicurrency feature as easy as flexible as possible with realtime conversions using the XE.com service .
Simply set up your customers with their national currency code, and create invoices. The current exchange rate will be pulled from XE.com, so that the transactions for your P&L and Balance sheet will be in the base currency for your accounts, while you can create invoices and send statements to your clients in their own currency.
But what happens when the currency fluctuates between the time you raised the invoice and the time you received the payment? Well, this is not a problem, because SortMyBooks will again pull the realtime rate from XE.com, and record any currency differences into your accounts. This way your accounts are always up to date no matter how far your customer reach is.
What about importing goods? You can also use the multi currency feature on the supplier side. Let’s say you buy goods from the US. If your supplier invoices you in US dollars, you can simply record it as such in the dollar amount. SortMyBooks will fetch the going currency rate and record it to your accounts. When you pay the supplier, you simply enter the amount you paid, and any currency exchange difference will be logged into your accounts.
So whether you trade in Euros, Dollars, Sterling or RAI stones. your accounts will be up to date and accurate, with no year end conversion headaches to worry about.
Ask us about enabling multi-currency on your account today!