I have three bank accounts
CURRENT : NatWest - I download data to tag the transcactions
DEPOSIT ; Citibank. this account does not export Data so I have to work from printouts
DOLLAR : Citibank. this account does not export Data so I have to work from printouts.
90% of my business is invoiced and paid in USD. I regularly transfer between the two Citi accounts [converting dollars to GBP] - and the exchange rate is widely different from the XE.com rate at point of invoice.
I then transfer from the Citi Sterling to the NatWest current account as necessary - and these movements are taggable from the downloaded NatWest Current Account data file.
What is the simplest way to input the transfers between the 2 Citi accounts and to adjust for the differences in the actual amount received and the amount on the dollar invoices that Quickfile has automatically produced ?
I havve switched for TAS Books to Quickfile. In the old system I was able to instantly move cash between my accounts [although I had to estimate the exchange rates and adjust at year end] … Is there a simple way to do all of this with Quickfile ? ?
You can enter individual transactions on a bank account by hand, they don’t have to necessarily be imported from a feed. I’d enter one side of the transaction manually, then tag it as a transfer between accounts which should let you enter the amount in the other currency at the point of tagging. This will create the matching transaction on the other account automatically.
Thank you for that Ian. That has clarified the first part of my query very well.
I’m still not clesar about the second part …
Here is a pretty standard scenario for me…
January : I create several USDollar invoices [total value around $25,000] and QF calculates the sterling value on a real time basis using XE.com
February : [Hopefully] my clients pay by wire transfer direct to my US Dollar account
March [or whenever I need funds in my Sterling account] I transfer funds from USD to GBP account. Even if the exchange rate were constant, I would receive 2-3% less in GBP than QF has calculated as the value of my invoices. How does QF allocate this difference [as it’s not invoice by invoice] ? Because, if I can’t identify these “losses”, my tax liability would be increased by several hundred pounds?
Regards
John
There’s a tool available from the USD account’s settings page to account for currency gains or losses. Every foreign currency account maintains two balances, the currency balance you see and a hidden GBP balance based on the exchange rates you applied to each payment in or out. Over time this will drift away from the actual GBP balance according to the current exchange rate, the loss/gain tool recalculates the GBP balance and moves the difference to the “currency charges” nominal (which will make it an expense on your P&L).