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
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
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
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 hope you find this helpful. You're welcome.
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.
Your explanation was good Mr. !-!
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.