Exchange Rates

Introduction

All foreign currency transactions require an exchange rate to convert the posting to the base reporting currency.

Typical Problems

Maintaining constantly fluctuating exchange rates is a challenge for finance teams.

Some accounting systems do not retain historical exchange rates removing the ability to know how much is gained and lost through FX variance.

Most finance systems are restricted as they require separate customer and supplier accounts for each currency they need to transact in, which causes difficulty reconciling debtor and creditor control accounts.

Solutions

Cloud accountancy solutions can integrate live exchange rate feeds and custom rates if needed, they also record fixed-point historical data for accurate reporting.

Functionality exists to transact in multiple different currencies against the same customer or supplier accounts to simplify the debtor and creditor reconciliation process.

Benefits/ROI

A full exchange rate history allows you to compare different periods to help identify gains and losses.

As live rates are automatically available for use in the finance system vast amounts of time can be saved and errors will be reduced.

Clear visibility on accounts to understand what is owed and due for payment across multiple currencies.