Work seamlessly across borders
If your business deals with international clients, suppliers, or operates across borders, managing multiple currencies can get complicated. Every manual conversion takes time, costs money in fees, and introduces the risk of errors. Officaid's multi-currency feature lets you create invoices, record expenses, and track account balances in any currency, while automatically handling exchange rate calculations behind the scenes.
Why Multi-Currency Matters
Every time you convert currency, you lose money to exchange fees and unfavourable rates. These costs add up quickly for businesses that regularly transact internationally. Multi-currency support solves this by letting you work directly in foreign currencies without forced conversions.
Beyond cost savings, multi-currency makes your business easier to work with. Clients prefer to see invoices in their local currency, and suppliers appreciate being paid in theirs. When both sides of a transaction use the same currency, there's no confusion about amounts owed or paid.
For your accounting, multi-currency eliminates the headache of manual exchange rate lookups and calculations. You can issue invoices and receive payments in the same currency, which simplifies reconciliation and reduces the need for constant adjustments.
Who Benefits from Multi-Currency
Multi-currency is valuable for any business that crosses borders, including:
- E-commerce businesses accepting payments from international customers
- Importers and exporters paying overseas suppliers or receiving foreign payments
- Service providers billing international clients in their preferred currency
- Freelancers and consultants invoicing clients worldwide
- Companies with overseas staff paying remote employees or contractors in local currencies
Even if you only occasionally deal with foreign currencies, having multi-currency support means you're ready when opportunities arise.
Key Concepts
Before diving into how Officaid handles multi-currency, here are the key terms you'll encounter:
- Default Currency the primary currency for your business, set during company setup. All reports and summaries convert foreign amounts back to this currency for a unified view of your finances.
- Operating Currencies the additional currencies you've enabled for your business. You can add as many as you need.
- Conversion Rate the exchange rate used to convert between currencies. Officaid calculates this automatically using the latest rates, but you can enter the actual rate from your bank when recording payments.
Where Multi-Currency Applies in Officaid
Once you enable additional currencies in your company settings, you can use them across these areas:
- Invoices create and send invoices in your client's preferred currency, so they see exactly what they owe without conversion confusion
- Expenses record purchases and bills in the currency you were charged
- Payables track what you owe suppliers in their local currency
- Other Income log non-invoice income in any currency
- Accounts set up dedicated bank or cash accounts for each currency you hold
This flexibility means you can work in whatever currency makes sense for each transaction, while Officaid keeps everything organised and converted back to your default currency for reporting.
How Exchange Rates Work
Officaid uses the latest exchange rates to help you understand the value of your foreign currency transactions. Here's how it works at each stage:
- Before payment the conversion rate is automatically calculated based on the latest exchange rate. This gives you an estimate of how much you'll receive or pay in your default currency.
- During payment when you record a payment, you can enter the actual conversion rate from your bank. This ensures your records reflect the real amount received or spent.
- Automatic updates for unpaid invoices and outstanding payables, Officaid continuously updates the estimated value as exchange rates change. Once a payment is recorded, the rate is locked in.
Recording Payments in Foreign Currencies
When you record a payment for a multi-currency transaction, Officaid needs to know the conversion rate so your books stay accurate in your default currency. You have two options:
- Enter the Conversion Rate and Officaid calculates the amount in your default currency
- Enter the Amount in your default currency and Officaid calculates the conversion rate for you
Either way, your invoice or expense record will show the original currency amount, while your accounts reflect the converted value. This gives you a clear audit trail showing exactly what was paid and received.
Managing Accounts for Different Currencies
In Officaid, each account holds a single currency. While you can record transactions in any currency regardless of which account you use, creating separate accounts for each currency helps keep your records organised.
For example, if you frequently deal in both SGD and USD, you could create a dedicated bank account for each. This makes it easier to see your balances in each currency at a glance and simplifies reconciliation with your bank statements.
How Reports Handle Multiple Currencies
Financial reports in Officaid convert all foreign currency transactions to your default currency, giving you a unified view of your business finances. For clarity, reports show the original foreign currency amount in brackets alongside the converted value.
For unpaid items, reports use the latest exchange rate to show current estimated values. Once a payment is recorded, the actual conversion rate is used instead. This means your reports always reflect the most accurate picture of your finances.
Getting Started with Multi-Currency
Setting up multi-currency in Officaid takes just a few steps:
- 1 Go to Admin → Company and click Edit Currencies
- 2 Add the operating currencies your business uses
- 3 Create dedicated accounts for each currency if needed
- 4 Select the appropriate currency when creating invoices, expenses, or payables
Tips for Managing Multiple Currencies
Here are some best practices to keep your multi-currency transactions organised:
- Create dedicated accounts for each currency while not required, separate accounts make it easier to track balances and reconcile statements
- Use clear naming conventions include the currency code in account names for quick identification
- Enter actual conversion rates when recording payments, use the real exchange rate from your bank for accurate records
- Reconcile regularly multi-currency transactions can have small exchange rate differences, so regular reconciliation helps catch discrepancies early
- Hold currency strategically if you regularly pay suppliers in a foreign currency, consider holding that currency rather than converting back and forth
Frequently Asked Questions
No. If your business operates entirely in one currency, you don't need to add any additional currencies. Your default currency is already set up and ready to use.
No, you can record payments in any currency in any account. However, creating separate accounts for each currency helps keep your records organised and makes reconciliation easier.
Exchange rates are updated in real-time. For unpaid transactions, Officaid automatically recalculates the estimated value based on the latest rates until a payment is recorded.
Yes, you can edit the currency on invoices and expenses as long as they are still unpaid. If a payment has already been recorded, you'll need to delete the payment first before changing the currency.
What's Next?
Ready to set up multi-currency for your business? Continue with these guides:
- Setting Up Your Operating Currencies – add the currencies you need
- How Exchange Rates Work – a deeper look at automatic and manual rate handling
- Invoicing in Multiple Currencies – bill international clients
- Multi-Currency Accounts – manage foreign currency bank accounts