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
- 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.
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