Tonight we’re rolling out a fantastic new feature that many of you have been asking for – multi-currency invoicing! From tomorrow morning you can raise invoices in Euros, US Dollars, Canadian Dollars, and Australian Dollars. We’ll be adding additional currencies based on demand, so if you need access to some Polish złoty or Korean 원 head over to our Feedback area and start a thread.
Although the user-facing elements of our multi-currency system are incredibly simple (you just select the currency you wish to use while raising an invoice), the back-end gymnastics required by our accounting system are far more complicated.
There are two main issues when dealing with foreign currencies, both due to the fact that conversion rates are constantly changing.
Firstly, an invoice for €500 may be worth £400 to you at the time it is issued, but a few pounds more or less by the time it is eventually settled by your client 28 days later. Secondly, a bank account with $30,000 in it may be worth substantially more or less in British Pounds from one Company Year End to the next.
The method for dealing with these profits or losses on exchange forms the bulk of the new code being deployed tonight, and ensures all transactional information is recorded properly in the relevant ledgers.
We’re including several helpful tools for users too. Whenever you raise an invoice in a foreign currency you can hover over the amounts to see their value in GBP, so you know how much the sale is really worth to your business.
We’ll also be allowing clients to assign default currencies to individual companies, so if you have a customer in France, for example, you can have their invoices raised in EUR as standard.
Lastly we’re allowing GBP amounts from bank statements or feeds to override GBP invoice totals in bank reconciliation to speed up the process a little.
Due to the different exchange rates used by various banks (and the fact that they skim a little off the top) it’s unlikely the GBP total for a foreign currency invoice as calculated by Crunch will match the GBP amount that eventually ends up in your bank account. To save you having to manually adjust each foreign currency transaction our bank reconciliation system will grab the correct totals from your statement instead.
Best of all, our multi-currency invoicing will be available on all our packages!
As always, if you have any questions leave a comment below, or ping us on Twitter.
Photo by Ken Teegardin