Multi-Currency Bookkeeping

If your business deals with overseas suppliers, customers, or operations, you're dealing with multiple currencies. That means transactions in USD, EUR, AED, or other currencies that need converting to GBP for UK tax purposes. HMRC requires businesses to convert foreign currency transactions to GBP using official exchange rates for tax purposes—proper multi-currency bookkeeping ensures accurate conversion. Multi-currency bookkeeping tracks transactions in multiple currencies, converting them to GBP for UK tax returns, which is essential for businesses with international operations.

The problem is most businesses don't handle multi-currency transactions properly. They use wrong exchange rates, don't account for exchange rate gains/losses, or struggle with foreign currency tax reporting. That causes problems—wrong exchange rates mean incorrect tax calculations, missing exchange rate adjustments means inaccurate profit figures, and poor foreign currency tracking means HMRC compliance issues.

We handle multi-currency bookkeeping for businesses with international operations: multi-currency transaction tracking, exchange rate conversion using HMRC rates, tax-compliant foreign currency reporting, and exchange rate gain/loss accounting. Whether you're a business in Medway with overseas suppliers, a company in Maidstone selling to international customers, or a business in Canterbury with operations in Dubai, we'll set up multi-currency bookkeeping that works. No exchange rate errors, no tax compliance issues—just accurate multi-currency bookkeeping that keeps you compliant and gives you accurate profit figures.

What this helps you do (fast)

• Track foreign currency transactions accurately — Record transactions in their original currency, then convert to GBP using correct exchange rates. Accurate tracking means accurate bookkeeping.
• Use correct exchange rates for tax purposes — HMRC has rules about which exchange rates to use. We'll use the correct rates (HMRC rates, spot rates, or average rates depending on the situation).
• Account for exchange rate gains and losses — Exchange rates fluctuate, which means foreign currency transactions can gain or lose value in GBP terms. Proper multi-currency bookkeeping accounts for these gains/losses.
• Ensure tax compliance — Proper multi-currency bookkeeping ensures foreign currency transactions are reported correctly for tax purposes. No HMRC compliance issues.
• Handle international operations easily — Whether you have overseas suppliers, international customers, or operations abroad, multi-currency bookkeeping makes it easy to track everything accurately.
• Get accurate profit figures — Exchange rate adjustments ensure your profit figures are accurate, reflecting the true value of foreign currency transactions.

How it works

Step-by-step process for multi-currency bookkeeping:

1. Discovery call — We chat about your business: what international operations you have (overseas suppliers, international customers, operations abroad), what currencies you deal with (USD, EUR, AED, etc.), what your current foreign currency tracking looks like, what exchange rates you're using, and what you want to achieve.
2. Multi-currency account setup — We set up multi-currency accounts in your bookkeeping system:
   • Foreign currency bank accounts — Bank accounts in different currencies (USD bank account, EUR bank account, AED bank account, etc.)
   • Foreign currency sales accounts — Sales income in foreign currencies
   • Foreign currency expense accounts — Expenses paid in foreign currencies
   • Exchange rate gain/loss accounts — Accounts to track exchange rate fluctuations
   Multi-currency accounts ensure foreign currency transactions are tracked separately.
3. Exchange rate setup — We set up exchange rate conversion:
   • HMRC exchange rates — For tax purposes, HMRC provides exchange rates (gov.uk exchange rates). We'll use these where appropriate.
   • Spot rates — For day-to-day transactions, we might use spot rates (current market rates) or average rates for the period
   • Transaction date rates — Convert transactions using the exchange rate on the transaction date (not the payment date or reporting date)
   • Period-end rates — For balance sheet items (foreign currency bank balances, outstanding invoices), we'll use period-end exchange rates
   Exchange rate setup ensures conversions are done correctly for tax purposes.
4. Transaction recording — We record foreign currency transactions:
   • Record in original currency — Record transactions in their original currency first (USD 100, EUR 500, AED 1,000, etc.)
   • Convert to GBP — Convert to GBP using the correct exchange rate for that transaction date
   • Track exchange differences — If exchange rates change between transaction date and payment date, track exchange rate differences
   • Categorise correctly — Categorise foreign currency transactions correctly (sales, expenses, transfers, etc.)
   Transaction recording ensures all foreign currency transactions are tracked accurately.
5. Exchange rate adjustments — We account for exchange rate fluctuations:
   • Period-end adjustments — At month-end or year-end, revalue foreign currency balances (bank accounts, outstanding invoices) using current exchange rates
   • Exchange rate gains — If foreign currency increases in value, record exchange rate gains
   • Exchange rate losses — If foreign currency decreases in value, record exchange rate losses
   • Profit and loss impact — Exchange rate gains/losses affect profit and loss, which affects tax calculations
   Exchange rate adjustments ensure profit figures reflect true value of foreign currency transactions.
6. Foreign currency reporting — We set up foreign currency reporting:
   • Foreign currency transaction reports — Reports showing all foreign currency transactions, original currency amounts, exchange rates used, GBP equivalent
   • Exchange rate gain/loss reports — Reports showing exchange rate gains/losses for the period
   • Foreign currency balance reports — Reports showing foreign currency bank balances, outstanding invoices, etc.
   • Tax return preparation — All foreign currency transactions converted to GBP for tax return preparation
   Foreign currency reporting ensures everything is ready for tax returns.

We work with cloud accounting software (Xero, QuickBooks, Sage) that supports multi-currency, or we can set up multi-currency tracking in other systems. The key is using correct exchange rates and accounting for exchange rate fluctuations, so you get accurate profit figures and tax compliance.

Costs & timelines

Pricing factors:

• Number of currencies — More currencies mean more complexity (more exchange rates, more conversions, more adjustments)
• Transaction volume — More foreign currency transactions mean more conversion work
• Exchange rate complexity — Simple spot rate conversion costs less than complex average rate or period-end revaluation setups
• Reporting requirements — Basic foreign currency reporting costs less than detailed exchange rate gain/loss reporting

Commonly reported ranges by local providers:

• Multi-currency bookkeeping setup: £300–£600 depending on number of currencies and complexity
• Monthly multi-currency bookkeeping (if we handle it): £200–£400/month depending on transaction volume and number of currencies
• Foreign currency transaction processing (one-off): £150–£300 for processing existing foreign currency transactions

Why multi-currency bookkeeping costs what it does:

• Multi-currency account setup requires understanding of foreign currency accounting
• Exchange rate setup requires knowledge of HMRC rules and which rates to use
• Transaction recording requires conversion work (record in original currency, convert to GBP)
• Exchange rate adjustments require period-end revaluations and gain/loss accounting
• Foreign currency reporting requires additional reports and tax return preparation

Timeline: Setup usually takes 3-5 working days depending on number of currencies and complexity. Once set up, multi-currency bookkeeping is ongoing—record transactions, convert to GBP, account for exchange rate fluctuations. Exchange rate adjustments are usually done monthly or at period-end.

Ongoing support: If you want ongoing monthly multi-currency bookkeeping (we handle recording and converting foreign currency transactions), that's separate. Typical monthly multi-currency bookkeeping is £200–£400/month depending on transaction volume and number of currencies. We can also process existing foreign currency transactions if needed.

No hidden fees. Setup price includes multi-currency account setup, exchange rate setup, transaction recording setup, and exchange rate adjustment setup. Ongoing multi-currency bookkeeping is separate if you want us to handle it.

Kent (UK) focus

We work with businesses across Kent: businesses in Medway with overseas suppliers, companies in Maidstone selling to international customers, and businesses in Canterbury with operations abroad.

Kent businesses are increasingly international—whether it's e-commerce selling globally, manufacturing with overseas suppliers, or professional services with international clients. The difference is when you have proper multi-currency bookkeeping, you track foreign currency transactions accurately, use correct exchange rates for tax purposes, and account for exchange rate fluctuations. That's what helps Kent businesses handle international operations properly and stay tax compliant.

Common Kent business scenarios:

• E-commerce businesses — Online businesses selling globally, receiving payments in multiple currencies
• Manufacturing businesses — Businesses with overseas suppliers, paying for materials in foreign currencies
• Professional services — Service businesses with international clients, invoicing in foreign currencies
• Import/export businesses — Businesses importing/exporting goods, dealing with multiple currencies

Kent business market context:

• Many Kent businesses have international operations (e-commerce, manufacturing, professional services)
• Multi-currency bookkeeping helps Kent businesses handle foreign currency transactions accurately
• Proper exchange rate conversion ensures Kent businesses meet HMRC requirements and get accurate profit figures

Remote-first, Kent-focused. We don't need to meet in person (though we can if you prefer), and we understand what Kent businesses are dealing with. Multi-currency transactions, exchange rates, tax compliance—we'll set up multi-currency bookkeeping that helps you handle international operations properly.

Dubai (UAE) clients

If you're a UK business with operations in Dubai, or a Dubai-based business with UK operations, you're dealing with AED (UAE Dirham) and GBP. We handle multi-currency bookkeeping for UK↔Dubai operations:

• AED↔GBP transactions — Track transactions in AED, convert to GBP for UK tax purposes
• Dubai operations — Bookkeeping for Dubai operations (company setup, invoicing, expenses)
• UK tax compliance — Ensure Dubai income/expenses are reported correctly for UK tax (NRL, dual residency, Corporation Tax)
• Exchange rate conversion — Use correct exchange rates for AED↔GBP conversion for tax purposes

UK↔Dubai scenarios:

• UK businesses with Dubai operations (offices, clients, suppliers)
• Dubai-based businesses with UK operations (NRL, dual residency, UK tax obligations)
• International clients with UK and Dubai presence

We understand the complexities of UK↔Dubai operations—NRL status, dual residency, Corporation Tax, VAT, and multi-currency transactions. Whether you're in Kent and have Dubai operations, or you're in Dubai and have UK tax obligations, we'll handle multi-currency bookkeeping that works for both jurisdictions.

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