Working in 2 Currencies

[vas_guy]

Does working in two currencies make bookkeeping complex and add to the fees.

Give that the majority of the transactions are in one currency and the sales are in one currency only a few purchases are in a seperate currency.

Does this over complicate bookkeeping to the point that an accountant can increase his fees

[elainec100@cheapaccounting]

is this another - has my accountant over charged me question?

[vas_guy]

he also use the 2 currencies as an excuse for increased fees

[elainec100@cheapaccounting]

With all due respect I think you have been advise how to tackle this issue in the previous threads that you have started.

Posted on each individual item will not help your cause I'm afraid.

Please please please have a look at what we have all spent our valuable time advising you to do already ion your previous threads.

Thanks

[Tom McClelland]

Accounting in more than one currency can be very complex.

Most low-cost bookkeeping systems (that a small accountancy practice would typically use to keep client costs down) don't handle the many issues that result from multi-currency operations properly and automatically.

That said, it is likely to be substantially simpler if there are no foreign currency elements on the balance sheet (eg unpaid invoices, foreign bank account, etc)

I've no idea what statutory complications currency accounting introduces. An accountant could advise you.

[englishbob]

Vas_Guy

With the right software there is NOT a great deal of extra effort required in dealing with foreign currency supplier invoices and ledger balances over a pure sterling set of accounts. Just enter an exchange rate at time of invoicing and deal with a revaluation to a new exchange rate at year end on foreign currency open items. A multi-currency package will do this easily.

However if the wrong software is used - then it can be worst then doing it manually. Especial if contorted work-arounds have to be used.

Check that your accountant is using the right software is my advice. If not change accountants - if it is that important to your business.

My advice to accountants is don't just stick to a market leader if it does not offer full multi-currency functionality as standard.
Many software packages do - just dig around and find them. After all there is approximately 800 packages in the UK at the moment. So choice is not a limitation!

[David Griffiths]

I think that the answer will depend on how many transactions are "translated" between the two currencies. If transactions in each currency are normally fairly self contained - e.g. purchases in sterling with a sterling bank account and sales in euro with a euro bank account, then it's only the transfers between the two that have to be tied up.

But if there's all kinds of everything going on, then life can be more difficult, whatever software you use.