If your business conducts significant work with foreign locations, customers, or business partners, you’ll undoubtedly face the challenge of dealing with foreign currencies. Without the right tools, it’s easy for currency conversion to become a burdensome and expensive business task. The good news is that there are many accounting systems which allow for foreign currency accounting, as well as stand-alone modules to help you automate your currency conversion tasks.
Is your company part of a global business community? If so, it’s vital that your accounting system knows how to convert from one currency to another. Foreign currency conversion applications allow you to keep your ledgers in the relevant local currency or even access the same financial information in the currency of your choice. Additionally with the right package you can generate purchase orders and invoices in the right currency for your vendors and customers.
As many otherwise full-featured accounting systems don’t contain foreign currency conversion modules, there are many add-on module options available on the market. With a foreign currency conversion module you’ll be able to create top level reports, bill, and conduct financial analysis without the error prone and time intensive process of manually calculating currency conversions.
With foreign currency conversion modules, transactions throughout the system are translated from currencies and exchange rates that you can define and update. You’ll also gain the flexibility to use different buy and sell rates, create selected reports to view in local or foreign currencies, and set exchange rate warning periods to prevent using an old exchange rate.