Do better cross-border business in Xero multi-currency

Frequently asked questions

What is multi-currency accounting?

Multi-currency accounting is the practice of recording financial transactions in more than one currency. It involves converting foreign currency amounts into your base (home) currency for reporting purposes, tracking exchange rate gains and losses, and ensuring your books stay accurate even as currency values fluctuate. It's essential for any business that buys from or sells to customers or suppliers outside the US.

Multi-currency accounting is the practice of recording financial transactions in more than one currency. It involves converting foreign currency amounts into your base (home) currency for reporting purposes, tracking exchange rate gains and losses, and ensuring your books stay accurate even as currency values fluctuate. It's essential for any business that buys from or sells to customers or suppliers outside the US.

What currencies does Xero support?

Xero supports over 160 currencies, including all major global currencies such as USD, EUR, GBP, AUD, CAD, JPY, and more. You can set your base currency when you set up your Xero account, and then transact in any of the supported currencies for invoices, bills, bank accounts, and expense claims.

Xero supports over 160 currencies, including all major global currencies such as USD, EUR, GBP, AUD, CAD, JPY, and more. You can set your base currency when you set up your Xero account, and then transact in any of the supported currencies for invoices, bills, bank accounts, and expense claims.

What are the benefits of multi-currency accounting software?

Multi-currency accounting software removes the manual work of tracking exchange rates, converting amounts, and reconciling foreign currency accounts. Using multi-currency accounting software, like Xero, automates the entire foreign currency transaction process. Xero updates exchange rates while you make transactions so your records are always correct. You can also manually set exchange rates to reduce price fluctuations, and use Xero’s international business accounting tools to track your cash flow.

Multi-currency accounting software removes the manual work of tracking exchange rates, converting amounts, and reconciling foreign currency accounts. Using multi-currency accounting software, like Xero, automates the entire foreign currency transaction process. Xero updates exchange rates while you make transactions so your records are always correct. You can also manually set exchange rates to reduce price fluctuations, and use Xero’s international business accounting tools to track your cash flow.

How does multi-currency accounting work in Xero?

In Xero, you set a base currency for your business. When you raise an invoice or bill in a foreign currency, Xero automatically converts the amount to your base currency using the current exchange rate.

In Xero, you set a base currency for your business. When you raise an invoice or bill in a foreign currency, Xero automatically converts the amount to your base currency using the current exchange rate.

Does Xero handle exchange rate conversions automatically?

Yes. Xero shows the exchange rate for the day a foreign currency transaction was created and applies exchange rates to foreign currency transactions automatically. You can also override the exchange rate on any individual transaction if you need to lock in a specific rate – for example, if you've agreed a fixed rate with a customer.

Yes. Xero shows the exchange rate for the day a foreign currency transaction was created and applies exchange rates to foreign currency transactions automatically. You can also override the exchange rate on any individual transaction if you need to lock in a specific rate – for example, if you've agreed a fixed rate with a customer.

Can I manually adjust exchange rates on Xero invoices?

Yes. While Xero updates exchange rates automatically, you do have the ability to manually adjust rates. For example, if you’ve agreed to a fixed price with a customer or need to match an exchange rate from a specific bank transaction. You can override the rate on any individual invoice, bill, or payment in Xero.

Yes. While Xero updates exchange rates automatically, you do have the ability to manually adjust rates. For example, if you’ve agreed to a fixed price with a customer or need to match an exchange rate from a specific bank transaction. You can override the rate on any individual invoice, bill, or payment in Xero.

Can I assign a foreign currency to my international business contacts?

Yes. Xero multi-currency accounting lets you assign a default foreign currency to a contact. When you create invoices or quotes, receive payments, bills or send purchase orders, they’ll show in the currency you’ve assigned to that contact. You can also change the currency on individual transactions if you need to.

Yes. Xero multi-currency accounting lets you assign a default foreign currency to a contact. When you create invoices or quotes, receive payments, bills or send purchase orders, they’ll show in the currency you’ve assigned to that contact. You can also change the currency on individual transactions if you need to.

Can Xero accept international payments?

Yes! Xero multi-currency accounting software converts international business transactions for you and updates your records. You can send invoices in over 160 currencies and accept payments online by connecting a payment processor to your Xero account. When a customer pays in foreign currency, Xero converts the amount to your base currency and records it automatically. You can also receive bills and make payments to international suppliers in their local currency. Xero’s currency conversion and invoicing tools make doing international business simpler, so you can manage your cash flow across foreign currency accounts with confidence.

Yes! Xero multi-currency accounting software converts international business transactions for you and updates your records. You can send invoices in over 160 currencies and accept payments online by connecting a payment processor to your Xero account. When a customer pays in foreign currency, Xero converts the amount to your base currency and records it automatically. You can also receive bills and make payments to international suppliers in their local currency. Xero’s currency conversion and invoicing tools make doing international business simpler, so you can manage your cash flow across foreign currency accounts with confidence.

Is multi-currency accounting available on all Xero plans?

Multi-currency is available on Xero's Established plan (US). If you're on the Early or Growing plan and need to transact in foreign currencies, you'll need to change to the Established plan. Once enabled, all existing transactions in your account remain unaffected, and foreign currency bank accounts can be added immediately.

Multi-currency is available on Xero's Established plan (US). If you're on the Early or Growing plan and need to transact in foreign currencies, you'll need to change to the Established plan. Once enabled, all existing transactions in your account remain unaffected, and foreign currency bank accounts can be added immediately.

What are best practices for managing multi-currency transactions in Xero?

Good best practices include: reconciling foreign currency bank accounts regularly to capture exchange rate movements; reviewing unrealized currency gains and losses before period-end close; using Xero's currency revaluation feature at month-end to update the home-currency value of open foreign currency balances; and connecting a payment processor that supports multiple currencies (such as Stripe or PayPal) to accept payments directly from foreign invoices.

Good best practices include: reconciling foreign currency bank accounts regularly to capture exchange rate movements; reviewing unrealized currency gains and losses before period-end close; using Xero's currency revaluation feature at month-end to update the home-currency value of open foreign currency balances; and connecting a payment processor that supports multiple currencies (such as Stripe or PayPal) to accept payments directly from foreign invoices.