Hi there,
I’m a bit unsure how to tag the conversion of a forex conversion of USD to GBP. The USD was taken from my currency account and the converted GBP was inserted into my current account.
Also, I am a bit concerned by the automatic USD to GBP rate Quickfile gives. For example, I see Quickfile uses xe.com to get its conversion rate for USD to GBP. But this is not the rate I would get from converting using a Forex service. For example, today, the conversion rate is 1 USD = 0.6966 on xe.com. But if I were to use a Forex service, I would only get 0.6896. 1-2% is taken by a Forex company. If I take in $100,000 per year in USD (which is my average USD income as most of my business is conducted overseas), this means $1000 to $2000 is lost for every $100k I earn in conversion fees, and this doesn’t take into account the exchange rate which may be lower than when I earned the money. Can this be accounted for? This conversion figure on xe.com is used to calculate how much corporation tax I’m due I think.
Any ideas? 
Hi there,
Reposting this as I never received a response to my initial enquiry and maybe thought it was in the wrong section.
I’m a bit unsure how to tag the conversion of a forex conversion of USD to GBP. The USD was taken from my currency account and the converted GBP was inserted into my current account.
Also, I am a bit concerned by the automatic USD to GBP rate Quickfile gives. For example, I see Quickfile uses xe.com to get its conversion rate for USD to GBP. But this is not the rate I would get from converting using a Forex service. For example, today, the conversion rate is 1 USD = 0.6966 on xe.com. But if I were to use a Forex service, I would only get 0.6896. 1-2% is taken by a Forex company. If I take in $100,000 per year in USD (which is my average USD income as most of my business is conducted overseas), this means $1000 to $2000 is lost for every $100k I earn in conversion fees, and this doesn’t take into account the exchange rate which may be lower than when I earned the money. Can this be accounted for? This conversion figure on xe.com is used to calculate how much corporation tax I’m due I think.
Any ideas?
Hi @Kevin_John
I’ve merged your two topics to keep them together.
When you create an invoice, you can specify a different exchange rate if you wish:
When it comes to recording the actual invoice as paid, if you use the ‘Log Payment’ option on an invoice, you can specify a different amount which recalculates the exchange rate for you. Here’s an example on a dummy EUR invoice I have set up:
I hope that helps?
Thanks for that.
The USD I have is for money already earned and I did a conversion of USD into GBP so I don’t want to log the payment as a sale, just a conversion. How do I do this?
Hi @Kevin_John
I’m sorry, but I’m not sure I’m following, but I’ll try my best.
Would this be, for example a straight exchange of £100.00 into USD in your bank account?
I had an $xx,xxx amount in my Barclays Currency Account that I exchanged using UKForex for a £xx,xxx sum that was placed in my Barclays Current Account.
I think I’m with you! 
You can enter a money out transaction for the $xx,xxxx in your Currency Account, and click ‘Tag Me!’
Click ‘Transfer between accounts’
Enter your amount in GBP and select your Current account:
This then creates the opposite ‘Money In’ entry in your GBP bank account:
However, if you have to record any taxes on these kinds of transactions, it may be best to speak to your accountant (I’m not one).
But I certainly hope that helps!
Hi Kevin, if you don’t mind me asking, how did you end up accounting for the currency conversions, I’m facing the same problem?
I can see that the transfer between accounts solution would work, but it wouldn’t account for conversion losses and gains, or the transaction with forex, does that matter?
