ClearBooks supports multi-currency invoicing and multi-currency bank accounts. This is an early beta feature.  Whereas the core ClearBooks accounting system is still in beta but has been extensively tested, multi-currency accounting is at an early release stage.

We would invite our beta testers to experiment with multi-currency separately from accounts which are actively being used. To enable multi-currency go to the “Settings” menu to turn it on.

You can read more about multi currency accounting here.

Invoicing in foreign currencies

Creating an invoice in a foreign currency is straightforward. There are two additional fields that are now available in the Add Invoice form (Note that these fields can be ignored when you are raising a normal invoice).

  • Currency Select the currency you would like to raise the invoice in.
  • Exchange Rate Enter the exchange rate to use for the transaction. The system will attempt to pre-populate the exchange rate with daily data from the ECB.

Note: After selecting a currency you will need to hit the refresh button to update the form. This will be automated in due course.

When you view your multi-currency invoice or download it as a pdf the invoice will be displayed showing foreign currency symbols and amounts.

Payment

When funds are received for a multi-currency invoice these will be deposited in your bank account’s currency.

Therefore an invoice of $100 for which you have received £65 in your sterling bank account may, due to changes in exchange rates, have originally been worth £60 when the invoice was initially created.

Differences due to currency fluctuations can be allocated against the ‘Forex movement’ account to ensure that settled invoices are marked as full paid.

Foreign Currency Bank Accounts

Adding a multi-currency bank account requires one additional field to be completed in the normal new bank account form. In the case below a US dollar bank account would be created.

When you import a multi-currency bank statement or re-create a manual foreign currency bank statement ClearBooks will know that the transactions are in a different currency. When you explain these transactions you will be required to enter  the exchange rate.

Foreign currency bank accounts can be viewed in either the foreign currency or as converted into your reporting (default) currency.

Note: One limitation of the system currently is that you can only allocate foreign currency invoices against foreign currency accounts.

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Posted by Tim Fouracre

Tim founded Clear Books in 2008. Like many small business owners he worked from home for 15 months to get his startup off the ground. Today Tim enjoys helping Clear Books, its customers and its growing team innovate and achieve. Tim did his GCE O Levels in Ghana.