Working with Multi-Currency Transactions
In This Chapter
Adding currency feeds and multi-currency contacts in Xero
Understanding currency exchange rates and creating a foreign currency invoice in Xero
Working out conversion balances and accessing the Foreign Currency Gains and Losses report
I love freesias so I was over the moon when asked to help a client who imported this delicately perfumed flower. Due to space constraints, however, we worked next to the flower fridge (brrrr!), and I soon discovered the flowers, while still looking lovely, have minimal scent when cold. But onto the accounts. The business owner seemed to be in a good space — cash flow was positive, the bank balance was healthy and the business appeared to be booming. But those bothersome books needed updating and ‘Xero hero’ moi arrived on the scene and started tidying up the accounts for the business. We were both shocked by what was uncovered. The business actually only just broke even on what the lovely flowers were bought and sold for — all profits were actually generated from favourable currency movements during the year. In a different market environment where the currency fluctuated in an adverse ...