GETTING TO GRIPS WITH MULTIPLE CURRENCIES | THE XERO ANSWER
Conducting business internationally requires one to work with different currencies, unless transactions emanating from South Africa are Rand denominated. This would be highly unlikely for most SMME’s seeking currency upside off the back of a comparatively weak currency. Not only can it be confusing to work with different currencies, staying on track with the ever-changing cross currency values might seem nearly impossible.
With Xero, you can finally come to grips with multiple currencies by making use of their automatic accounting software. Xero makes it simple for you to manage your business’ accounts, even if they are multi-currency.
With Xero’s advanced accounting software, you can manage accounts by tracking gains and losses for over 160 currencies.
Reasons to choose Xero, especially if you manage an international, multi-currency, establishment:
By utilising Xero’s multicurrency software, you as business owner can send invoices, quotes and purchase orders, as well as receive payments or bills in up to 160 different currencies. Xero’s software updates automatically every hour, with information from XE.com, and any currency movements will be displayed within your transactions, allowing you to keep track of how currency fluctuations are impacting your business’ cashflow.
Automatic currency conversions
With Xero’s easy-to-use multicurrency accounting software, you as business owner can get paid in more than 160 currencies worldwide. Furthermore, you can accept payments and receive bills, while also sending invoices, quotes and purchase orders to businesses across the globe. All transactions occur automatically, so there is no risk of converting currencies incorrectly.
With Xero’s software, you can add as many foreign currencies as you require.
Assign currencies to contacts
To make your accounts more manageable, you can assign a specific currency to a customer. Doing this will ensure that all invoices, bills, purchase orders and payments from this customer will default to the chosen currency.
With this additional setting, you will also be able to see amounts owed in the currency owed.
Seamless currency accounting
In real time, all foreign transactions are converted to your local currency so that you are instantly aware of any gains or losses affecting your business’ cash flow.
With Xero’s multicurrency software, you can also add foreign bank accounts alongside your local accounts. This will enable you to create invoices using an automatic exchange rate – or you can choose to manually enter your exchange rate if preferred.
With accurate foreign currency reporting, you can say goodbye to complicated reconciliations and guesswork surrounding exchange rates. Xero offers flexible reporting solutions – simply choose the currency you want your reports in and all reports will automatically be revalued in line with the latest currency conversions and exchange rates.
Some of the reporting options available to you, include Profit and Loss Reports, Balance Sheets, Customer Invoice Reports, etc.