If you are providing your services to foreign clients, you might want to create invoices in currency that is different than your base currency. ProfitBooks supports multi currency accounting and invoicing.
While creating new customers or vendors, you need to specify their currency & ProfitBooks will use that currency in invoices or other vouchers.
Lets assume that you are in India and want to create an invoice in USD for a client from US. Lets see how you can record multi-currency transactions like this one.
Multi currency Invoicing
From Income menu, go to Customers.
Click on ‘+ Add New’ button to add a new customer.
After filling up the name and other details, select the desired currency.
From Income menu, go to Invoices and click on ‘+New Invoice’ button.
On the new invoice screen, select the foreign currency customer we just added.
A field for entering exchange rate will appear below the customer name. Please add the appropriate value. You can check the latest exchange rate on XE.com.
Select the product or service and enter the price in foreign currency.
Enter rest of the details and save the invoice.
This invoice will show the amounts in foreign currency which has been specified during customer creation. ProfitBooks will convert the amounts in base currency using the exchange rate provided by the user.
You can create estimates in a similar way by going to Income menu and then clicking on Estimates.
Now, while adding the payment, you might receive the amount in foreign currency. Click on the ‘+ Add Payment’ button and enter amount and exchange rate details.
Learn more about how to create invoices in ProfitBooks accounting software.
Record expenses in multiple currencies
Now a days, lot of startups use services provided by foreign companies. For example, people use Mailchimp to send mails or Google Adwords to advertise their business online and they need to pay in USD to these companies. Lets see how we can record such expenses.
From Expenses menu, go to Vendors.
Click on ‘+ Add New’ button to add a new vendor.
After filling up the name and other details, select the desired currency.
Now, from Expenses menu, go to Record Expenses.
Click on ‘+ New Expense’ button to add a new transaction.
Click on Credit Expenses tab and select the vendor. Click on + Add New option in dropdown to create a new vendor
A field for entering exchange rate will appear, please fill in the appropriate value.
Enter details about the expense and save the record.
Learn more about how to manage business expenses using ProfitBooks.
