The Best Multi-Currency Accounting Software
Multi-currency accounting software manages transactions, accounts, and reports across multiple currencies. We tested and reviewed numerous systems and selected our top picks for multinational corporations, eCommerce companies, and global trade operations like import and export.
- Hundreds of third-party add-ons available
- Feature sets for multiple industries
- Highly customizable
- Basic inventory management capabilities
- Free trial available and no setup fees
- Navigable, user-friendly interface
- Customizable invoicing
- Extensive pre-built and custom reports
- Automatic exchange rates
Using our review methodology, we evaluated systems that strongly focus on multi-currency support, automatic conversion, and dual reporting standards. We selected our favorites, including NetSuite, Xero, QuickBooks Online, and Gravity Software.
- NetSuite: Best Automatic Currency Conversion
- Xero: Strong Dynamic Exchange Rate
- QuickBooks Online: Best Global Tax Compliance
- Gravity Software: Best for Multi-Entity Operations
- Sage Intacct: Best for Mid-Market Companies
NetSuite - Best Automatic Currency Conversion
NetSuite’s automatic currency conversion feature can help you streamline your financial processes, improve accuracy, and enhance compliance with international standards. The system integrates with various financial services and exchange rate providers, automatically producing real-time exchange rates.
When a transaction occurs in a foreign country, NetSuite will instantly convert the amount into your organization’s base currency using the latest exchange rate. The functionality can also manage currency revaluations at the period’s end to adjust fluctuations and ensure accuracy.
For example, perhaps you operate in three regions: the U.S., Europe, and Asia, with headquarters in the U.S. Your European office invoices a client in EUR for €50,000. NetSuite’s automatic currency conversion will convert this to USD, logging $55,000 into your financial system.
However, NetSuite comes at a higher price point, with its most basic accounting package starting at around $1,299/month for only up to 10 users. NetSuite is designed for growing small businesses and enterprises.
For more information, read our full review on NetSuite.
Xero - Strong Dynamic Exchange Rate
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.
QuickBooks Online - Best Global Tax Compliance
Boasting support for over 160 currencies, QuickBooks Online allows businesses to manage and track global transactions effortlessly. 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.
Gravity Software - Best for Multi-Entity Operations
Gravity Software addresses the intricacies of managing multiple currencies across diverse entities. It consolidates this data efficiently, aiding companies in transcending 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 handling of 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.
Sage Intacct - Best for Mid-Market Companies
Sage Intacct is a cloud-based financial management platform built for companies operating across multiple entities and currencies. Sage is a great middle ground for organizations that have outgrown basic tools like QuickBooks or Xero but don’t need the full complexity of an enterprise ERP like NetSuite.
For international finance teams, Sage’s ASC 830/FAS-52 consolidation engine does the heavy lifting. Every transaction is recorded in both the original currency and your base currency simultaneously, keeping exchange rate data auditable. The system also automatically pulls daily foreign exchange (FX) rates from OANDA and calculates unrealized gains and losses on your open invoices. From there, Sage Intacct’s multidimensional reporting lets you slice and dice your financial data by country, currency, entity, or department, enabling deep, granular insights.
Pricing for Sage, like most ERPs, is based on company size, requirements, and markets served, and requires a custom quote. It is important to note that multi-currency support and global consolidation features are not included in the basic package, so expect additional costs for global compliance. That said, Sage Intacct is a great fit for growing SMBs and mid-market companies looking for a robust financial software solution that can operate globally.
Explore our complete Sage Intacct breakdown.
What is Multi-Currency Accounting Software?
Multi-currency accounting is the process of recording, converting, and reporting financial transactions across multiple currencies. For businesses that operate in different locations, pay international vendors, or invoice customers in foreign countries, managing those transactions by hand with spreadsheets or simple accounting tools can lead to compliance issues and errors.
Multi-currency accounting software automates that process. It pulls real-time or daily exchange rates, converts transactions to your base currency, and tracks foreign currency gains and losses as exchange rates fluctuate. More advanced platforms also handle period-end revaluations, consolidated financial reporting across entities with different functional currencies, and compliance with international accounting standards like ASC 830 (US GAAP) and IAS 21 (IFRS).
Challenges
One of the biggest challenges of multi-currency accounting is exchange rate fluctuations. Exchange rates can vary significantly over time, meaning 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 and 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 accounting principles.
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
- Increases Accuracy: Ensures that financial transactions are recorded in their original currency and converted into the reporting currency for financial reporting purposes. This can provide a more accurate picture of a business’s financial performance.
- Improves Financial Reporting: Provides a more comprehensive view of a business’s financial performance across different countries and currencies. This helps businesses make informed decisions about their operations and investments.
- Enables Better Decision Making: Provides accurate and up-to-date financial information and facilitates 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 applicable accounting standards and regulations and 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 must ensure 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 can effectively use the new system and comply with accounting standards and regulations.
Implementing a multi-currency accounting system requires a significant investment of time and resources but can ultimately provide significant benefits for businesses operating in multiple currencies.
Pricing Guide
Multi-currency accounting software pricing varies significantly depending on your business size, the number of currencies you transact in, and the complexity of your consolidation process. Get a better understanding of what your business should budget for based on these ranges:
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Small Business ($50-$200/month): Small business-focused accounting tools typically include multi-currency support in their mid-tier plans. These tools are a good fit if you’re invoicing across a handful of currencies and don’t need to consolidate between multiple entities.
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Mid Market ($800-1,200/month): Accounting software built for mid-sized businesses typically uses quote-based pricing. These platforms are built to handle more complex currency workflows, including multi-entity consolidation and compliance with international reporting standards like GAAP and IFRS.
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Enterprise ($2,500+/month): Enterprise platforms support the most complex global operations spanning multiple entities and currencies. Pricing scales with user count, modules, and number of entities. Implementation costs can be substantial when compared to SMB and mid-market packages.
