In today’s global economy, being able to convert from one currency to another is essential for most businesses. For example, you might have vendors in China and Canada, customers in Europe, and offices in the United States. In that case, you would want to convert Yuan, Canadian dollars, and Euros into U.S. dollars for tax and accounting purposes.
You need to have not only an accounting solution that has multi-currency capabilities (like QuickBooks), but an equally capable inventory management system, as well. The multi-currency features to look for in an inventory management solution include the ability to:
- Create multiple currencies for use in various orders and reports
- Assign a currency to each of your vendors, shippers, and customers
- Update currency values in relation to the U.S. dollar
- Convert currencies into U.S. dollars
- Integrate with QuickBooks to track finances in the proper currencies
These bullet points all deserve to be expounded upon, so let’s go in depth on each of them.
CREATE MULTIPLE CURRENCIES FOR USE IN VARIOUS ORDERS AND REPORTS
This is important because it allows you to receive sales orders and create purchase orders in whatever currency your customers or your vendors use. But at the same time, you can convert them into your own currency for accurate bookkeeping purposes.
ASSIGN A CURRENCY TO EACH OF YOUR VENDORS, SHIPPERS, AND CUSTOMERS
You can save a step and simply plan for different currencies to be used by assigning different currencies to different customers, suppliers, etc. No more guesswork. When an order comes in or goes out, you know exactly what to expect and your inventory software is ready.
UPDATE CURRENCY VALUES IN RELATION TO THE U.S. DOLLAR
If you integrate a solution like Avalara with Fishbowl’s inventory management software, it automatically updates currency values as they fluctuate. So you do not have to worry that your numbers might be out of date. All of that is taken care of for you.
CONVERT CURRENCIES INTO U.S. DOLLARS
As mentioned before, this is an extremely useful feature because it allows you to accept any type of payment from your customers and also make any type of payment to your vendors and then record them in your home currency. You definitely want to do this because otherwise you would not know how much money is coming in or going out. This is a must-have feature when it comes to accurate accounting and inventory valuation.
INTEGRATE WITH QUICKBOOKS TO TRACK FINANCES IN THE PROPER CURRENCIES
Fishbowl integrates seamlessly with QuickBooks, which allows you to schedule exports from the inventory software over to the accounting software as frequently as you like. And QuickBooks records those updates in your home currency and it has its own multi-currency features to smooth out that process.
Fishbowl currently offers the ability to use multiple currencies when creating Purchase Orders and Sales Orders. They are working on adding multi-currency features to every other part of its inventory management software.
Sign up for a free trial of Fishbowl and start putting its multi-currency inventory management features to use in your organization.
Fishbowl integrates seamlessly with QuickBooks, and it offers the following multi-currency features that work well with the accounting solution:
- Create multiple currencies
- Set up default currencies
- Update currency values
- Convert currencies into your home currency
- Send financial data to QuickBooks in the proper currency