I heard a user cannot set up income and expense accounts in multiple currencies using the multicurrency software from quickbooks, simply accounting or most all other software.
So is this going to be a problem ?
Because I have 2 different Bank accouts for commercial business, and additionally I have 3 currencies per chequing account.
For example, the commericial chequing account is with Bank A, and another one at Bank B.
Bank A has 1 chequing account in Canadian Funds (home currency), US, and Euro. The same applies to Bank B.
***** Thus if I am charged $50 USD in bank fees for a wire transfer at Bank A in my US chequing account, or if I deposit 500 Euros currency cheque from a customer into Bank A Euro account I never exchange/convert these amounts into other currencies overtime since they sit in thier respective chequing accounts.
But my software converts the US $50 expense into my home currency at some exchange rate, and converts my Euro deposit into my Euro account of 500 Euro's into a Canadian Dollar value.
How do I keep track of these errors ? or what am I supposed to do, is there software out there that allows the option to see each income and expense in multicurrencies ?
Is this a problem in the software or an accounting problem?
Maybe I have the entire accounting idea wrong, if someone can explain to me in simple english I will understand this system, if anyone can shed light please explain in detail.
You've already asked this, and been answered, elsewhere. I don't know why, but I'll repeat it.
"Income and expense accounts in multiple currencies" would be meaningless. As a Canadian resident your tax returns will be filed in Canadian dollars, so what matters to the tax authorities and anyone else who might read your financial statements is the Canadian-currency equivalent of whatever you earn and spend in whatever currency. What multicurrency software does is to simplify the translation of foreign-currency amounts into Canadian currency.
No, this is NOT a "problem".
The fact that you leave funds in foreign-currency accounts for extended periods exposes you to possible gains and losses arising from changes in the exchange rates. Multi-currency software also helps calculate these gains and losses - both actual gains and losses that occur when you exchange currencies, and also the unrealized amounts (sometimes called "accrued", or what might be described as "hypothetical") that accountants calculate periodically (gains or losses that would occur if currencies WERE exchanged at a particular time such as year-end).
None of the above is an "error", and proper use of multicurrency software will cause you no problems. Improper use of either single-currency or multicurrency software WILL cause you problems.
Yes there **IS** software that will let you do what you want. You can do it "your way" using ANY accounting software, but "your way" is WRONG.
Yes, you do have the entire accounting idea wrong. Your principal mistake is in believing that accounting is real simple and can be explained to you in simple English. Some accounting concepts are quite complicated. Accounting is a profession that requires years of specialized education, training, and experience. Why do you persist in demanding that someone explain complicated accounting concepts and procedures "in simple English and in detail"? If you really want to know, commit yourself to several years of study and sign up for university courses in accounting, economics, mathematics, taxation, law, and a few other incidental courses that help keep everything in perspective.
Are you also harassing the brain surgeons and nuclear physicists in other newsgroups, demanding that they explain their professions to you in detail and in plain English, telling them that they use software which makes errors (even though you don't understand the basic concepts of their professions)?
I agree completely that it is beneficial to know SOMETHING about issues that concern you, whether it's forthcoming surgery or basic concepts of accounting and tax for your business. But I hope you will consult and rely on experts to actually perform any surgery that you require rather than attempting it yourself. And I wish you would consult your accountant about accounting and tax issues that are beyond your knowledge and experience. If you actually run a business you should be spending your time and efforts on activities that will be much more profitable. If you're just "curious", go read some books instead of pestering hardworking professionals who are willing to give a little free help to people who deserve it but many of whom are getting fed up with you.
I just told Monkey Boy that he/she didn't have a clue about what he/she was talking about and should read a book on the topic. Your post was much better. Monkey Boy is getting to be a real pest.
It actually helps. No need for the sarcasm though.
By the way I have already consulted with quickbooks technical assistance for these points, the newsgroup is simply added value. Most of the technicians don't understand this concept either by the way.
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