Multicurrency: Currency Conversions to Post the Correct Financial Data
How Bookkeep handles currency conversions to ensure data posts in the correct financial currency
When operating an ecommerce store, it is possible that you are selling in multiple currencies. As a result, a currency conversion may occur as the money moves to your bank account. Below we will discuss how Bookkeep handles these various situations.
Quickbooks Online with Multicurrency Enabled
When QuickBooks multicurrency is enabled, Bookkeep will request a currency conversion rate from QuickBooks when the accounts mapped do not match the source data currency. In this case, Bookkeep relies on QuickBooks to provide the currency conversion rate. This rate may not match the exact conversion rate used to transfer money to your bank account. In that case, you could adjust the conversion rate in QuickBooks. An example where this may occur is when you are receiving a CAD deposit for Amazon marketplace sales from Canada, while your bank account is in USD, resulting in a conversion from CAD to USD.
Quickbooks Online without Multicurrency Enabled:
When QuickBooks multicurrency is NOT enabled, Bookkeep offers a feature where we will perform the currency conversion for you. Bookkeep partners with Open Exchange Rates, where we retrieve the daily rate provided by them to convert currencies for you. This prevents the need for you to activate multicurrency in QuickBooks. In this case, we will compare the currency of the mapped accounts versus the source data currency to determine the exchange rate needed.
Xero Currency Conversions:
In the case of Xero, you may have accounts in various currencies. Bookkeep offers a feature to convert the currencies for you to ensure the data posts correctly. For deposits, Bookkeep compares the mapped bank account currency versus the source data currency to determine if a currency conversion is needed. For non-deposits, Bookkeep can perform the currency conversion by comparing the base or home currency from Xero to the source data currency. Bookkeep partners with Open Exchange Rates, where we retrieve the daily rate provided to convert currencies for you.
If you have any questions or need help with converting currencies, feel free to contact [email protected].