How to Deal with Foreign Currencies in QuickBooks 2011

QuickBooks 2011 supports multiple foreign currencies, in case your business goes international. If you turn on the Multiple Currency feature within QuickBooks, QuickBooks sprinkles little "currency" reminders throughout its windows and dialog boxes. For example, amount boxes show a little abbreviation for the currency that goes into a particular input box — thereby reminding that in this particular text box, you're supposed to enter, for example, British pounds.

Here's how you use Multiple Currencies in Quickbooks 2011:

  1. Choose Edit→Preferences and select the Multiple Currencies option from the list box.

  2. Click the Company Preferences tab.

  3. Select the Yes I Use More Than One Currency button and choose your home currency from the drop-down list box.

After you tell QuickBooks you'll be working with multiple currencies, you need to set up a bank account for each extra currency. After that, you can indicate which currency a vendor or customer uses when you set up a new vendor or customer. You can also pick a default currency for vendors or customers you haven't yet done business with.

Using the currency exchange information available on the Currency List (available when you choose Lists→Currency List), QuickBooks converts foreign currency amounts to home currency amounts so you can prepare reports that use your home currency.

QuickBooks updates its records concerning foreign exchange rates if you display the Currency List window, click the Activities button, and choose Download Latest Exchange Rates.

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