Do you care about multi Currency Accounting problems? If so then perhaps you have asked these questions; Is it possible to keep business accounts in different currencies? Is it necessary to have multi currency accounting software when a company has accounts in more than one currency?
In the work of globalization and outsourcing, business people have a need to conduct their businesses in foreign and multiple currencies. Many African countries have had to adapt to dealing with the Dollar and Euro transactions to facilitate buying and selling activities internationally in addition to local currencies like the Kwacha, Pula and Rand.
Let us now consider the above questions in the light of Pastel Multi Currency Module. Accounting with multiple currencies can be tricky; you need a full tutorial on multiple currency accounting to understand the problems.
Essentially, any amounts referring to different currencies cannot be totaled directly. It is necessary to have a basic currency to refer to and to use for the totals.
The basic point of Accounting is that the totals of the ‘debit’ balances must correspond to the totals of the ‘credit’ balances. To verify that the Account is balanced, there must be a single currency and an exchange value in basic currency for every transaction.
Without the right Accounting Software, Multi-Currency transactions can be a problem and accounting for multi currency transactions can be quite critical.
Here is my suggested solution to this Multicurrency Accounting problem, If you conduct business in various currencies. Buy or download a free multi currency accounting system that allows you to process your customers and supplier transactions in various currencies. For example, Pastel Evolution tracks foreign currency customers and supplier values in both foreign and home currency allowing you to view your balances and transactions in either currency at any given time.
The right Multi-Currency system should be able to keep a history of all exchange rates you have used in the past so that you can as well process transactions at earlier dates using the most accurate exchange rate in order to calculate the correct exchange rate profit and loss.
Further, any worthy multi currency software must facilitate printing of your customer and supplier sales and purchase documents in foreign currency as well as your home currency to avoid inconveniencing your customers who may request reports in a particular currency.
If you have any comments please feel free to leave your comment.
About the Author:
Fixed Asset Consultant at Prosperity Agencies Limited with over 10 years practical experience in physical verification, bar-coding of assets and fixed asset software implementation +260 211 239859
Let's Get Connected: Linkedin | Facebook | Google Plus
Excellent article to read. feel free to visit our site. If you want an IT Company and solution provider that provides Quickbook software solution, feel free to visit us. We are QBM IT Services, aside from quickbooks, we offer also different it services, like cuztomized web-base sytem, responsive website, payroll system, networking, and we can supply computer with specs that you want to request.
Post a Comment