Accounting in $ and £

JonWitte · 23rd September 2008

Apparently, this is starting to become an issue for us. Do you run a separate set of books for your different currency accounts or have some other way of dealing with it? Accountants are loath to move away from QB which, to be fair, has been perfect for us over the years.

martmonkey · 23rd September 2008

Easiest way of doing it holding 1 book in a default currency. And convert any other currency to your default one in your accounting entries.

aguk · 23rd September 2008

Quote:

Originally Posted by martmonkey

Easiest way of doing it holding 1 book in a default currency. And convert any other currency to your default one in your accounting entries.

Not really - depends on your accountancy methods.

If we converted every transaction to GBP from USD we would need to calculate the exchange rate for each transaction as it is deposited into GBP.

We run multi-currency books.

We have USD accounts and GBP accounts. USD payments are deposited in a USD account. When funds are transfered to a GBP account the exchange rate is then entered.

Once a month we then revalue the currency accounts and enter a journal for Exchange rate variance in profit loss to show an accurate GBP value of the USD account in the balance sheet.

When we receive a USD invoice it is recorded with the exchange rate at time of reciept. When it is paid we record the exchange rate at time of payment and the difference is charged to PL as exchange rate variance.

QB can do this for you automatically.

othellotech · 23rd September 2008

Quote:

Originally Posted by aguk

QB can do this for you automatically.

QB2006 can, none of the later versions work correctly

FH - Tim · 24th September 2008

Quote:

Originally Posted by othellotech

QB2006 can, none of the later versions work correctly

Unforunately correct, It's not ideal at all we are just going to be giving our accountant more work because of the two currencys. Some times I feel it would be easier to just use GBP, if only the customers would agree.

PaulTG · 24th September 2008

We just don't accept payment in anything other than GBP; keeps things simple.

aguk · 24th September 2008

Quote:

Originally Posted by othellotech

QB2006 can, none of the later versions work correctly

I stopped using QB at QB2006. So I was not aware of that. Alternative is journal entries.

vincento · 24th September 2008

We deal mostly in euro and convert all foreign amounts to the appropriate euro value. Our accountancy software, AccountView, can handle foreign amounts however...

alvarez16 · 7th October 2008

I would simply convert everything.

Thanks

markcastle · 7th October 2008

I'd simply convert you into a ban

BurtyB · 7th October 2008

ban ban ban ... on a different note I see the new QB 2009 is supposed to support multi currency "better" than the old ones... might be worth looking into.

ChrisB.

JonWitte · 7th October 2008

May be worth a punt. fwiw, the accountant's advice for now is to run separate books and transfer between the two as required.