Hi, I have some experience of accounts work for various clients, but I am new to Quickfile. I have decided to test out Quickfile with a client by running his end of year accounts. He deals in both GBP and Euro currencies. As I am running through his accounts, and new to Quickfile, I decided to eliminate the laborious and somewhat fiddly currency conversions and convert the Euro currency to GBP at source.
Naturally, I have a shortfall on the Euro, income side and need to make a journal to compensate? Or do I? The accounts are to be lodged with HMRC as he is primarily a UK operation. What journal entry(s) would I need to make, because my clients income is looking a little short.
Hi @StuartNorfolk,
There is a section to this guide that explains the journal for the exchange rate differences: Invoicing in foreign currencies
hope that helps
Hi Beth, thanks for the reply, a very helpful guide, but as I’ve instigated the Euro/GBP at source I will want to be adjusting/increasing the Euro bank account, do I take it that the journal would be in reverse? i.e. to enter the journal to debit 1204 Euro bank and credit 7902 Currency Charge?
Although, thinking about it, that would increase my net profit and thus my tax liability?
Hi @StuartNorfolk,
I wouldn’t like to say - It may be best to consult with an accountant before making the adjustments if it will alter your tax liability.
Is there an accountant on here that could give me such advise?
There is an accountants directory: accountants.quickfile.co.uk
These are accountants who use QuickFile, so they are familiar with the software
One of those may help you 