{"id":8958,"date":"2022-07-27T08:49:00","date_gmt":"2022-07-27T08:49:00","guid":{"rendered":"https:\/\/synder.com\/blog\/?p=8958"},"modified":"2026-05-26T09:42:06","modified_gmt":"2026-05-26T09:42:06","slug":"synder-multi-currency-feature","status":"publish","type":"post","link":"https:\/\/synder.com\/blog\/synder-multi-currency-feature\/","title":{"rendered":"Handling Foreign Currency Transactions with Synder Multi-Currency"},"content":{"rendered":"\n

Let\u2019s take a closer look at Synder helps with hardships in recording and managing foreign currency transactions in accounting!<\/p>\n\n\n\n\n\n\n\n\n

The growth in e-commerce has recently been given a significant boost, drastically increasing competition in the domestic market. It was only logical for businesses to start exploring ways of reaching new customers and expanding into new online markets. And the emergence of new e-commerce channels and solutions has made cross-border trade more accessible. <\/p>\n\n\n\n

However, operating an international e-commerce business has raised potential concerns, such as accepting international payments online and accounting for transactions in foreign currencies. Let\u2019s take a closer look at what may cause hardships in recording and managing foreign currency transactions in accounting helps dramatically facilitate this task.<\/p>\n\n\n\n

Learn other reasons why giving Synder a green light is worth a shot<\/a><\/em>.<\/p>\n\n\n\n

What are multi-currency transactions?<\/h2>\n\n\n\n

Multi-currency transactions are your business transactions in multiple currencies different from your home currency.<\/p>\n\n\n\n

Why would you need to deal with transactions in foreign currencies?<\/p>\n\n\n\n

When selling internationally, it’s critical to localize your sales to be in line with customers’ expectations. It takes not just translating your product names and descriptions to the language your customers speak. It also means offering them the possibility to pay in their home currency (and often provide the payment methods they’re used to). <\/p>\n\n\n\n

So, expanding your business to embrace foreign markets, you\u2019ll inevitably face the need to accept such payments and reflect them in your books.  <\/p>\n\n\n\n

What do you need to provide for when recording and managing transactions in foreign currencies?<\/h2>\n\n\n\n

Accounting for international transactions can be complicated and bear potential risks. And the more channels you have to migrate your cross-border sales data into accounting, the higher the risk of errors and discrepancies is. So you’d want to be super accurate not to mess up your books. Let\u2019s break down some of the most common sources of complications you need to provide for when recording foreign currency transactions in accounting.<\/p>\n\n\n\n

Currency exchange rates<\/strong><\/p>\n\n\n\n

Running an international business, you\u2019ll be receiving payments in different currencies. However, you might need to convert all foreign currencies into your home currency (in case you\u2019re a US-based business, it\u2019s USD) for the sake of reporting and managing your financial documents more efficiently. You’ll have to ensure you apply the correct exchange rates when recording transactions. If done manually, it can become the biggest source of discrepancies, especially when you\u2019re dealing with a large number of foreign transactions. You have to verify the rate for the dates every transaction occurred, as the rates can change day to day. Also, not all the importing solutions out there can recognize foreign currency transactions, thus recording the wrong numbers into the books and making reconciliation difficult.<\/p>\n\n\n\n

Foreign transactions sales taxes<\/strong><\/p>\n\n\n\n

Foreign currency sales are still subject to sales tax, which the IRS taxes on the home currency value. So you need to provide for sales taxes when recording foreign currency transactions and make sure that the exchange rate is up-to-date with when the transaction occurred. Also, you’d want to record sales taxes under the correct category to secure accurate reporting and tax filing.<\/p>\n\n\n\n

Foreign currency exchange gain or loss<\/strong><\/p>\n\n\n\n

It\u2019s especially relevant when foreign customers don\u2019t instantly pay for your products or services. You invoice them in their currency, expecting to receive a certain amount in dollars and reflecting this amount in your accounts receivable. However, when the payment occurs, the actual amount in dollars that enters your bank account may be different due to the exchange rate fluctuations — you can either gain or lose some dollars per transaction. The difference should be correctly reflected in your books, otherwise, they won’t balance. Some accounting software can provide for this, however not all of them will do this automatically.<\/p>\n\n\n\n

One more important thing to think about is whether your accounting is tailored for managing multi-currency transactions.<\/p>\n\n\n\n

You aren\u2019t really doing all the accounting manually, like writing down your transactions using pen and paper (or filling in the books in a spreadsheet). You\u2019re likely to use some accounting software. However, the solution you might be using might not support multi-currency or require you to enable this function before you can record transactions in currencies other than your home currency. Usually, you\u2019ll have to upgrade<\/a> your subscription, change your settings<\/a>, or change the accounting solution to ensure you can manage foreign currency transactions in your books.<\/p>\n\n\n\n

How does Synder multi-currency help?<\/h2>\n\n\n\n

The multi-currency functionality in Synder allows for receiving international payments in multiple foreign currencies and automatically synchronizing them with your accounting. Upon set-up, Synder will eliminate the manual work element from the workflow, saving a considerable amount of time and ensuring the accurate and error-free recording of transactions in various currencies into the books.<\/p>\n\n\n\n

The software logic provides for applying correct currency exchange rates that it captures from payment providers when converting transactions into the home currency. It also recognizes different details of transactions, including those in foreign currencies, and categorizes them correspondingly. Ultimately, it automatically calculates and converts the sales tax amounts, applying correct exchange rates on the date of the invoice or bill (depending on what you need).<\/p>\n\n\n\n

With Synder, you\u2019ll still need to put some effort into the initial set-up, enabling multi-currency. However, when you\u2019re done with it, it puts your accounting for foreign currency transactions on autopilot. It doesn\u2019t matter how many sales or payment platforms you receive payments in foreign currencies from, you\u2019ll have accurate books, correct financial reporting, and frictionless reconciliation.<\/p>\n\n\n\n

How to enable multi-currency transactions synchronization in Synder<\/h2>\n\n\n\n

Before you can manage and track your international sales transactions, you\u2019ll need to make sure multi-currency is enabled in Synder.<\/p>\n\n\n\n

To do so, just go to Settings<\/em> > General<\/em> tab and switch off the Skip synchronization for transactions in a foreign currency<\/em> setting. Otherwise, Synder will only synchronize transactions in your home currency. Here\u2019s how it looks:<\/p>\n\n\n\n

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\"Synder<\/figure>\n<\/div>\n\n\n

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You\u2019ll also need to ensure that your accounting solution allows for multi-currency or enable the functionality (if needed).<\/p>\n\n\n\n

Depending on how you want your transactions to be recorded in accounting, Synder offers two options: synchronizing multi-currency transactions into one account or recording transactions in each currency to its own account. In the first case, no matter the currency of the transaction, Synder will convert and record it in your home currency, applying the exchange rate provided by the connected payment processor. In the other case, transactions will be recorded in their original currencies and separate accounts. Which option you choose is totally up to you, based on your preferences and situation. As the setup workflow will be different at some point, let\u2019s take a closer look at the steps you need to take to configure each option.<\/p>\n\n\n\n