Change Home Currency in QuickBooks Online (A Guide)
In today's globalized world, businesses often deal with multiple currencies. QuickBooks Online offers a feature to manage multiple currencies, and changing the home currency is a common query among users. This article will guide you through the process of changing your home currency in QuickBooks Online and address some frequently asked questions.
How to Change Home Currency in QuickBooks Online
Changing your home currency in QuickBooks Online is straightforward, but there are certain conditions to be aware of:
Before Activating Multicurrency: If you haven't activated the Multicurrency feature, you can change your home currency by:
Clicking on the Gear icon.
Selecting Account and Settings.
Navigating to Advanced and then the Currency column.
Clicking the edit button.
In the Home currency column, choose the desired currency from the drop-down menu.
Click Save, then Done.
After Activating Multicurrency: If you've already activated the Multicurrency feature, you cannot directly change the home currency. The only way to change it is by deleting all your data and starting over from scratch. It's crucial to note that the Multicurrency feature isn't available in all versions of QuickBooks. If you don't see the Currency option, your version might not support this feature.
FAQs
How do I use different currency in QuickBooks online?
To use multiple currencies, you need to activate the Multicurrency feature. Once activated, you can select different currencies when creating invoices or other transactions. Remember, once turned on, you cannot deactivate the Multicurrency feature.
How do I change the currency in QuickBooks online chart of accounts?
Once the Multiple Currencies feature is activated, you can choose a foreign currency for a new vendor or customer when setting up their account. However, you cannot change the currency of an existing account.
How do I change the currency of a transaction in QuickBooks?
When creating a transaction, select the desired currency from the available options. If you've set a default currency for a customer or vendor, the transaction will default to that currency, but you can change it if needed.
Can I have multiple currencies in QuickBooks online?
Yes, QuickBooks Online supports multiple currencies. However, you need to activate the Multicurrency feature from the settings.
How do I turn off multicurrency in QuickBooks Online?
Once the Multicurrency feature is activated, it cannot be turned off. This is to ensure data consistency and accuracy.
Additional Insights
Home currency adjustments are essential when dealing with foreign balances. These adjustments reflect the changes in exchange rates on your foreign balances. The effect of a home currency adjustment can be seen as an unrealized gain or loss in accounts payable or accounts receivable.
It's always advisable to consult with an accounting professional before making significant changes or adjustments related to currencies.
The value of foreign currencies can fluctuate. Therefore, it's crucial to periodically adjust the value of foreign-held currencies to reflect their actual value as of the date of financial statements.
Conclusion
Managing multiple currencies in QuickBooks Online is a powerful feature that can benefit businesses operating in a global environment. By understanding how to change the home currency and making necessary adjustments, businesses can ensure accurate financial reporting.