Multi-currency

Multi-currency means the accounting software can handle money in more than one currency. You can send an invoice in euros or dollars when your books are kept in another currency, record bills from foreign suppliers, and see the gains or losses caused by exchange rate changes. Exact Online, Moneybird and Xero are examples of tools that offer it.

If you sell to or buy from other countries, you will otherwise be doing currency conversions by hand and guessing at the figures. That is slow and makes it hard for your accountant to produce correct accounts. You need this feature as soon as foreign customers or suppliers become a regular part of your business. If everything you do is in one currency, you can ignore it. It is easy to miss the practical limits, such as how many currencies are supported.

• Ask where exchange rates come from and how often they update.
• Check whether you can enter the rate manually when you need to match the bank.
• Find out how exchange gains and losses are recorded in the reports.
• Confirm that a foreign currency bank account can be connected and reconciled.