Automatically synchronize your multi-currency payments in QuickBooks in detail with the help of Synder. Synder will create transactions in the original currency and convert it to your home currency according to the exchange rate provided by your payment processor directly in your Quickbooks multicurrency wallet. Thus, the software will automatically add conversion rates for your multi-currency sales. Here is what you need to do to enable multicurrency in QuickBooks.
Are you a Xero user? Here is the guide on how to sync transactions in multiple currencies to Xero.
Please note: Before you start setting up Synder to deal with multicurrency, make sure that you have multicurrency enabled in your Quickbooks. Once you have multicurrency ON in your QuickBooks, you won’t be able to turn it off.
Syncing multi-currency transactions into one account (recommended)
Once you connect Synder to QuickBooks, it creates a clearing account under your Chart of Accounts in your home currency (the account can be called Stripe Bank Account, PayPal Bank Account, etc.).
All transactions in all currencies along with exchange rates will be synchronized to this single account and converted accordingly.
There should be no conversion discrepancy, as the app takes conversion rates from the payment processor. Only in case it’s not possible, the exchange rates of the accounting company for the corresponding transaction date are applied.
To access settings select the organization needed at the top right of the page – – > Settings button on the left menu of the app – – > find payment platform (if you have several connected) you want to customize settings for – – > click on the Configure button
The setup for all transactions to be put into one account is ready by default, so there is no need to do anything besides synchronizing transactions in various currencies to check how it works for you.
Note: please open the Synder settings (Gear icon in the top right corner) → General tab and make sure that Skip synchronization for transactions in a foreign currency is OFF, for the app to process all currencies. Otherwise, Synder will only sync transactions in your home currency.
Congrats, you’re all set and ready to sync transactions in multiple currencies!
Synchronize each currency to its own account
This is a much more tedious process, but it will give you an opportunity to have each currency reflected in a specific account in your Chart of Accounts. Exchange rates will be taken from the payment processor side, so there should be no conversion discrepancy. However, in case the exchange rate cannot be transferred from the payment processor, Synder will take it from your accounting company for the corresponding transaction date (only in this case a discrepancy is possible).
The setup involves:
- Setting up accounts in each currency manually in your QuickBooks.
- Selecting these accounts for syncing Sales, Fees and Expenses (PayPal only).
- Selecting your Checking Account for payouts in all of the currencies (unless you have separate checking accounts for each currency).
Having said that, we strongly recommend that you use the first method, with it being fully automated, as for the second one you will have to manually create balancing transactions between separate clearing accounts in your accounting company. You can create transfers or journal entries to put the remaining amounts into your clearing account in the home currency (you can consult with your accountant about the best way of doing this). Please use this setup only if you are sure you know what you are doing.
Creating Accounts in QuickBooks
You will need to go to your QuickBooks Chart of Accounts, create a new Bank type account in QuickBooks for each currency (e.g., Stripe Bank Account – CAD, Stripe Bank Account – EUR, and so on). The name of the type might vary from country to country. Look for the word Bank in the name of the Account Type.
Then you will need to go to Synder and choose those accounts as Sales, Fees, and Expense (PayPal only) Bank accounts. Below are the step-by-step instructions with visual aids to accompany you in the process.
Set up multi-currency synchronization in Synder
1. Go to Settings.
2. Go to the General tab.
3. Turn Skip synchronization for transactions in a foreign currency OFF. Otherwise, Synder will only sync transactions in your home currency.
3. Go to the Sales tab.
4. Press the Gear icon.
5. Choose any of the currencies that you have enabled in your QuickBooks and set up a Bank account where Sales Receipts, Refund Receipts, and Payments received in each currency will be stored.
6. Repeat steps 3-5 for Fees, Application Fees, and Expenses (PayPal only).
NB: QuickBooks regards Fees as Expenses. The category needs to belong to the Expense type in the QuickBooks Chart of Accounts.
7. Meanwhile, for the Payouts tab you should only choose your checking account (unless you have checking accounts for each currency separately).
8. Once you have filled in all the fields, remember to click on Update and synchronize transactions to your QuickBooks company.
Congrats! You are successfully set up to process multi-currencies in different accounts.