Foreign Currency
We mention foreign currency in our limitations pages so this page will provide further details on how we approach foreign currency conversions. This page includes information relevant for conversions to all destination systems
TABLE OF CONTENTS
Important information
Converting from QuickBooks (Desktop or Online) and Freeagent
Factors specific to QuickBooks (Desktop and Online) and FreeAgent mean that conversions where foreign currency is detected or those containing non-home currency transactions from these systems are unlikely to complete accurately.
We will not investigate or fix any aspect of these conversions, even if seemingly unrelated to foreign currency.
The only options regarding unsuccessful foreign currency conversions from QuickBooks (Desktop or Online) or FreeAgent will be to accept them complete with differences or abandon the conversion. We do not recommend reconverting a second time, as this is likely to give the same results.
Converting from Sage, KashFlow or Xero
We will do our best to investigate and resolve any differences with these conversions, although this isn’t always possible.
Our Approach
We don’t attempt to convert any foreign currency transactions from the source software into foreign currency transactions in the destination software. All foreign currency transactions are converted as home currency transactions. As such, all foreign currency bank and credit card accounts are converted as home currency accounts.
The source software system provides the home currency value of the foreign currency amount. It does this based on the exchange rate details entered along with the transaction. In other words, the source software stores all foreign currency transactions with a home currency value. When converting a foreign currency transaction, we apply the home currency value provided by the source software.
This applies to both invoices and bills as well as bank and credit card transactions.
The Result
This shouldn’t cause too many problems. The Balance Sheets and Profit and Loss Reports should mostly still agree between the two systems. Of course, there won’t be any unrealised gains or losses in the destination software as there aren’t any foreign currency transactions! There could be some differences between debtors and creditors, as translated payment amounts may not match the invoice or bill amount.
Changes to Make
You may wish to correctly reflect foreign currency bank accounts as such, and to ensure any outstanding foreign currency invoices or bills show in the foreign currency value.
Since foreign currency bank accounts will be in the home currency, you’ll probably want to create a new foreign currency bank account. Transfer the balance on the home currency equivalent foreign currency account to the newly created foreign currency account. Set the exchange rate such that the transfer empties the home currency account and deposits the correct foreign currency amount into the new bank account.
You may also want to amend (or delete/void and recreate) any outstanding foreign currency invoices. This will give a better picture of what’s owed / owing to you.