Foreign (Multiple) Currency Conversions

We mention foreign currency in our limitations pages so this page will provide further details on how we approach foreign currency conversions.

Important information regarding conversions from QuickBooks (Desktop and Online)

Factors specific to QuickBooks (Desktop and Online) mean that conversions containing non-CAD 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), 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 or Xero

We will do our best to investigate and resolve any differences with these conversions although this isn’t always possible.

The 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 CAD transactions. As such all foreign currency bank and credit card accounts are converted as CAD accounts.

The CAD value of the foreign currency amount is provided by the source software based on the exchange rate details entered along with the transaction. In other words the source software stores all foreign currency transactions with a CAD value. We simply apply the CAD value provided by the source software when converting.

This applies to both invoices and bills as well as bank and credit card transactions.

The Result

For the most part this shouldn’t cause too many problems. The Balance Sheets and Profit and Loss Reports should 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!

Changes to Make

You’ll no doubt want to correctly reflect foreign currency bank accounts as such. You’ll probably also want to ensure any outstanding foreign currency invoices or bills are correctly reflected.

Since foreign currency bank accounts will be in CAD you’ll probably want to create a new foreign currency bank account. Transfer the balance on the CAD equivalent foreign currency account to the newly created foreign currency account. Set the exchange rate such that the transfer empties the CAD 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.