#61 Let’s Get Foreign Currency Savvy: Part 1

We’re going global today as I dive into the fascinating world of foreign currency transactions. This topic may seem daunting at first, but as always, I’m here to simplify the complex world of bookkeeping and help you understand what you need to know.

In this two-part episode, I’ll provide you with valuable insights and tips to ensure you’re not losing out when dealing with foreign currency exchanges, processing the wrong amounts, or not invoicing correctly. Understanding the nuances of foreign currency can be a game-changer in the digital marketplace, helping you optimise cash flow and build stronger relationships with international clients. Today we’ll explore the basics of foreign currency transactions and sales in foreign currency and next week I’ll be talking about expenses in foreign currency.

If you have an online business and you’re attracting customers from across the globe, or perhaps you’re sourcing resources and tools from overseas, understanding foreign currency transactions is essential. At the heart of it all is the exchange rate, and in this episode, I share the basics of what you need to know about exchange rates and where to find them.

To invoice sales in a foreign currency and handle foreign currency transactions, it’s crucial to use software that can handle different currencies. I explain how various sales platforms and accounting software will drastically simplify things for you and what are some things to look out for. While these systems are user-friendly, consider seeking professional assistance if you need clarification on the setup.

Foreign currency transactions don’t have to be daunting. By equipping yourself with knowledge and using the right tools, you can master this aspect of your business. Make sure you stay tuned for next week’s episode, where I’ll explore the other side of the coin: dealing with expenses in foreign currency, which comes with its own set of challenges.

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Connect with Lisa Turner:

Instagram: @accountedforyou
Website: https://accountedforyou.com.au/