Do you have to manually convert each bank transaction or invoice into GBP?
Upgrading your Xero to multi-currency can help make this manual job automatic.
What does it do?
Once your Xero has been upgraded to multi-currency, you can add in the different currencies you use. Xero has around 160 different currencies to choose from.
You can then set up bank accounts on Xero in the different currencies and, as with all bank accounts, you can set up bank feeds so you don’t have to manually import the transactions.
Xero also allows you to add sales invoices and purchase invoices in any of the currencies you have added. This means you can invoice your customers in the currency of their choice and also add your purchase invoices in the currency they were issued in.
Multi-currency invoices can also be paid through bank accounts in any currency without the need to adjust for gains/losses in foreign exchange. For example, an invoice in USD can be paid through a GBP bank account and Xero will automatically calculate any gains or losses on foreign exchange.
Where does it get the exchange rates from?
Xero gets its foreign exchange rates from XE.com and they are updated in Xero hourly.
How does it report on the information?
Recently, Xero upgraded its reporting features to allow you to run the profit and loss reports in any of the currencies you have set up.
Xero also allows you to create custom reports so you can adjust them in any way you want, with any of the different currencies.
There are also a number of other reports which you can look at.
The next step
For more information, please contact Rebecca Kinsey on firstname.lastname@example.org, or your usual UHY adviser.