To help you choose the right solution for your business, we found and ranked the best multicurrency accounting software in the market today.
1 Xero - Best Overall
Why We Chose It: Xero is distinguished by its multi-currency accounting capabilities, making it a top choice for businesses engaged in international transactions. Designed to simplify foreign financial complexities, Xero provides an all-in-one platform to track, report, and manage transactions across currencies.
A couple of its notable features include the automatic updating of exchange rates and full support for international tax requirements, from VAT to GST. Integration with renowned payment gateways ensures businesses can seamlessly accept payments in multiple currencies. Moreover, the facility to convert invoice amounts based on current exchange rates and the ability to add foreign currency accounts elevate the user experience, keeping businesses in sync with global operations.
Read our full Xero review.
2 QuickBooks Online - Best for Diverse Currency Support
Why We Chose It: Boasting support for over 160 currencies, QuickBooks Online excels in providing a platform for businesses to effortlessly manage and track global transactions. Designed with international businesses in mind, it offers a blend of ease and accuracy, updating exchange rates daily and automatically converting transactions to the base currency.
QuickBooks Online shines in its provision to set up foreign currency accounts and its intrinsic support for international tax obligations, from VAT to GST. With a suite of customizable foreign currency features, businesses can cater to an expansive international customer base without the hassle of manual calculations.
Read our full QuickBooks Online review.
3 Gravity Software - Best for Multi-Entity & Currency Operations
Why We Chose It: Gravity Software emerges as the top pick for mid-sized businesses seeking multi-entity and multi-currency accounting solutions. Addressing the intricacies of managing multiple currencies across diverse entities, Gravity consolidates this data efficiently, aiding companies to transcend the capabilities of platforms like Xero and QuickBooks.
Its automatic exchange rate update feature is not just about convenience but ensures real-time accuracy in financial reporting. The platform’s prowess in handling complex transactions and its comprehensive support for global tax compliance make it a frontrunner for businesses with a broad international footprint. Additionally, Gravity’s integration with popular payment gateways streamlines the invoicing and payment processes, allowing businesses to operate fluidly in any currency.
Read our full Gravity Software review.
What is Multi-Currency Accounting Software?
Multi-currency accounting is the process of recording financial transactions in more than one currency. This can be challenging for businesses that operate in multiple countries or engage in international trade. However, it is also essential for businesses that want to accurately track their financial performance, make informed decisions, and comply with accounting regulations.
The Challenges of Multi-Currency Accounting
One of the biggest challenges of multi-currency accounting is exchange rate fluctuations. Exchange rates can vary significantly over time, which means that the value of transactions recorded in one currency may change when converted into another currency. This can make it difficult to accurately track financial performance, as well as calculate profits, losses, and taxes. Another challenge is currency conversions.
Converting one currency into another requires knowledge of exchange rates and a thorough understanding of the accounting principles involved.
Finally, accounting for multiple currencies can be complex, as it involves tracking transactions in different currencies, reconciling accounts, and preparing financial statements in accordance with accounting standards.
Benefits of Multi-Currency Accounting
Despite the challenges, multi-currency accounting offers several benefits.
Firstly, it can increase accuracy by ensuring that financial transactions are recorded in their original currency, and then converted into the reporting currency for financial reporting purposes. This can provide a more accurate picture of a business’s financial performance.
Secondly, multi-currency accounting can improve financial reporting by providing a more comprehensive view of a business’s financial performance across different countries and currencies. This can help businesses make informed decisions about their operations and investments.
Finally, multi-currency accounting can enable better decision-making by providing accurate and up-to-date financial information, as well as facilitating the analysis of financial performance across different currencies and countries.
Implementation of Multi-Currency Accounting Software
Implementing a multi-currency accounting system requires careful planning and preparation. This involves identifying the accounting standards and regulations that apply, as well as selecting the appropriate accounting software and financial management tools.
It also involves data migration and setup, which can be a complex and time-consuming process. Businesses need to ensure that their data is accurately transferred from their existing accounting system to the new multi-currency accounting system.
Finally, businesses need to provide training and support to their staff to ensure that they are able to effectively use the new system and comply with accounting standards and regulations.
Overall, implementing a multi-currency accounting system requires a significant investment of time and resources, but can ultimately provide significant benefits for businesses that operate in multiple currencies.