How to use the QuickBooks Multi–currency Feature?

QuickBooks provides the most effective accounting solution as it has some of the most useful tools which make the life of accountants easier. And one such feature of QuickBooks which is unique and acts as a savior for especially online business is the multi-currency feature of QuickBooks.

The multi-currency feature was introduced in QuickBooks in the year 2009 and it is really helpful for online businesses that have to deal with various forms of currencies as they are present all over the globe.

So, in the blog post, we will be looking at how to use QuickBooks Multi-use feature.

What is the benefit of multi-currency feature of QuickBooks?

With the help of multi-currency feature, you can easily track all the income and expenses of multiple currencies of various countries and you can also track previous exchange rates.

How to enable multi-currency in QuickBooks?

• Choose Preferences from the Edit menu of QuickBooks
• From the left side click on Multiple Currencies
• After that click on Company Preferences and click on Yes, use more than one currency
• Then from the drop down choose your Home Currency 

How to add foreign customers and vendors?

• Go to the Customer/Vendor center to create foreign customers and vendors. If there is already a name present then assign a bit different name to the foreign customers and vendors which you have created.
• Move to the Customer Menu and choose Customer Center
• Now from the drop-down, choose New Customer 
• Appoint a Customer name and Currency 
• Click ok

Important Notes

ü  After turning on this feature, your existing customers and vendors will be allotted to your home currency

ü  For the names which have already recorded transactions, the currency can’t be changed

How to add foreign currency?

• Choose Chart of Accounts to the list menu
• Right click anywhere and choose New
• After that choose the suitable Account type and assign a name
• Then click on Save and then Close 

Important Notes

ü  Currencies which are assigned for the accounts such as Credit Card accounts, Vendors, Bank Accounts, Customers, Accounts Receivable, Accounts Payable.

How to update your exchange rate?

• Move to the list menu and choose Currency List
• Then choose Activities button and select Download New Exchange Rates

How to manually enter exchange rates?

• Choose Currency List from the List Menu
• Now Double Click to choose the Currency 
• Then, you can update the Currency Exchange Rates for particular dates in the Edit Currency Window

 Important thing to know before using the multi-currency feature

ü  The feature of multi-currency feature is not reversible. So once it is turned on then you can’t reverse the process

ü  You should firstly make a backup of the files in case you want to turn back to the single currency feature

ü  After turning on the multiple currency preferences choose the other currency which you want to track

So, use the above-mentioned easy to implement process for enabling the multi-currency feature of QuickBooks which can prove to be very fruitful for you and especially if you are dealing with online business.