In this day and age, when many businesses have a global link, the importance of multi-currency accounting cannot be stressed enough. Staying on top in small business accounting is essential for your business. If your business often needs to bill global clients and receive payments in foreign currencies, you are perhaps already using a multi-currency accounting software product. Most accounting software Singapore comes with this feature, but only a few of them enable you to unleash the real power of cloud computing.
No explanation is needed for the number of benefits cloud accounting has to offer. But some important features and options to look for in multi-currency accounting software include real time multi-currency reporting, auto update of foreign exchange rates, ability to set up bank accounts in foreign currencies, and ability to send invoices, receive payments and track expenses in multiple currencies. Xero accounting software comes with all the necessary features and much more. It allows you to send and receive bills and make payments in more than 160 currencies and provides you updates on foreign exchange rates in every hour. Here are some important things to know about this accounting software.
Multi-currency Features in Xero
Xero offers several subscription models, and not all of them come with the multi-currency feature. So if you want to use the software for handling accounts in multiple foreign currencies, first make sure you choose the right pricing plan. But before you subscribe to plan with the multi-currency feature, you may want to certain things about it.
This is the currency of the country where your business is based. While signing up for Xero, you need to specify the country where you file your taxes. Then the system will set up your base currency by default. For instance, if your business is based in Singapore, your base currency will be Singapore dollar (SGD), while the base currency for a business based in the USA will be US dollar (USD). In Xero, you are not allowed to change your base currency. And unless you specify otherwise, all figures in Xero will be displayed in your base currency.
You can add as many as 160 different currencies in Xero. So choose which foreign currencies you want to add. It is also possible to add more currencies as and when required. Once you choose the multi-currency option, you are not allowed to turn it off. However, you can simply avoid using the feature and be happy to see all the figures in your base currency. If you think you no longer need the multi-currency feature, you can opt out the option and switch to a cheaper pricing plan.
Xero accounting software provides you updates on currency exchange rates every hour. If exchange rate for a day has to be determined after the day ends, then the rate at midnight is considered the standard rate of the day. When they say midnight, they mean midnight at the country where your business is based or the country where your file taxes. However, it is also possible to set your own rate instead of the rate provided by default for a certain day or time period.