The actual purpose of setting up foreign currency in QuickBooks is to help your business that has expanded in new countries and localities. With the help of QuickBooks, you can track as well as manage multiple currencies, and keep a tab on your income and expenditure accounts.
Why do you need to set up Foreign Currency in QuickBooks?
Setting up foreign currency in QuickBooks helps to keep a record of the transactions in different currencies.
In case you have suppliers, customers, or any bank account that use a foreign currency, tracking those transactions becomes impossible without setting up the multicurrency feature in QuickBooks. Additionally, you can track the exchange rate gains and the losses too.
Note: Once the multicurrency feature is switched on, it cannot be switched off again.
With the help of this multicurrency feature, you can allocate a particular type of currency to the below-mentioned profiles and accounts:
- Bank accounts
- Credit card accounts
- Price Levels
- Accounts receivable
- Accounts payable
How to add a Foreign Currency Account?
To add a foreign currency account, follow the steps mentioned below:
- Go to Settings
- Choose the Chart of Accounts
- Choose New
- In the specific Account dialog box, choose the right Account Type and Detail type
- Select a specific Name for the new account and also add he optional Description
- Choose the currency to allocate to the account from the specific dropdown menu of Currency
- Choose Save and Close
Note: The Currency column displayed in the Chart of Accounts display the currency allocated to the account.
Tips to remember before switching Multicurrency on:
Once Multicurrency is turned on, it can no longer be turned off. Ensure that you have a backup of your QuickBooks company file before you begin.
Here are some crucial points to remember before you start off with Multicurrency:
- QuickBooks desktop add-ons, some like the Statement Writer, Fixed Asset Manager, etc are not impacted by this particular feature.
- You will not be able to choose numerous customers in the Invoices for the specific Time and Expense window.
- Online payments for invoices do not work with numerous currencies.
- You will not be able to utilize the Income Tracker, Insights, Bill Tracker, etc.
- You will not be able to transfer information with QuickBooks, or duplicate company
Do not be overwhelmed or confused with the steps and procedures to set up foreign currency in QuickBooks. Just follow the above steps and set up foreign currency in QuickBooks or hire the services of a certified professional for a more accurate approach. For any such technical assistance or help, feel free to connect with the QuickBooks experts Team.