Ledger Setup
Multi-currency accounting tools
Compare foreign-currency workflows and plan limits for Xero, MYOB AccountRight Premier and QuickBooks Online in Australia.
Choose a multi-currency accounting tool by following a foreign-currency invoice or bill from entry to payment and reporting. Check whether the proposed setup preserves the original amount, explains the exchange rate and shows what reached the bank. A foreign currency on an invoice does not prove that the whole workflow works.
Define the work the tool must handle
List the currencies used for customers, suppliers and bank accounts. Note whether the business invoices, pays, holds a foreign balance or receives an AUD conversion from a payment provider. Include part payments, refunds and fees where they occur.
Have your accountant confirm the business's functional currency. Ask about the reporting needs as well.
For each transaction, keep the foreign amount, its value in the functional currency and the bank movement distinguishable. An exchange difference can arise between recording and settlement. A separately identified provider fee needs its own explanation. Do not change an invoice amount merely to remove an unexplained difference.
| Stage | What to check in the proposed plan |
|---|---|
| Entry | Can it record the invoice or bill in the required currency and retain the original amount? |
| Rate | What rate, date and direction are used, and can an authorised user override them? |
| Settlement | Can a part payment, conversion and identified fee be traced to the document and bank movement? |
| Reporting | Can the reviewer see open foreign balances and the relevant values in the accounts? |
| Correction | What happens when a rate or payment is corrected after review? |
Keep functional currency and presentation currency separate in the requirements brief. Ask your accountant which currency basis and outputs the business needs, then test whether the software can provide them.
Reporting requirements under AASB 121 for foreign currency transactions
- Functional currency requirement
- Must be identified by the business and confirmed with an accountant
- Exchange differences recognition
- Recognised in profit or loss unless hedged
- Presentation currency
- Separate from functional currency; must be clearly disclosed
- Reporting frequency
- Monthly, with reconciliation at period end
Compare documented starting points
Confirm the exact product and subscription for each option. Check the roles and current terms.
Xero. Its Australian multi-currency page describes automatic rate updates and foreign-currency reporting. Its Australian pricing page lists multi-currency in Comprehensive and Ultimate 10, but not Grow.
Ask to see the reports your accountant needs. Advertised reporting does not establish that a particular output meets your financial-statement requirements.
MYOB AccountRight Premier. MYOB documents multi-currency in AccountRight Premier 2018.3 and later. The documentation covers foreign bank accounts, transaction-rate overrides and a currency gain/loss account to track gains and losses from exchange-rate changes.
Establish how foreign statements and reporting-date balances would be reviewed. MYOB's bank-feed guidance for MYOB Business says feeds are available only for AUD or NZD accounts; treat this as a MYOB Business limitation, not an AccountRight Premier feature claim.
QuickBooks Online. Intuit's Australian help lists multi-currency for Essentials, Plus and Advanced, but not Simple Start. Once enabled, it cannot be turned off or have its home currency changed. Most customer, supplier and relevant account records have one assigned currency.
Intuit documents home-currency adjustments, but its Australian guidance says unrealised receivable and payable effects appear in reports rather than the general ledger or trial balance. Ask your accountant whether the proposed reporting route meets the business's needs.
Check setup commitments before enabling features
Test setup choices in a sample company where the provider offers one. MYOB says to use its AccountRight sample company to explore multi-currency features before enabling them in a working company file. Its multi-currency preference cannot be turned off once enabled, so confirm the product version and workflow first.
Check for side effects as well as currency entry. Intuit says QuickBooks Online Multicurrency will not work if QuickBooks Commerce is connected, and enabling it inactivates the cash flow planner. These restrictions may rule out an otherwise suitable setup if the business relies on either function.
Setup workflow for multi-currency accounting in Australia
- Test in a sample companyUse Xero’s demo company or MYOB’s AccountRight sample file before enabling in live data
- Confirm product version and subscriptionEnsure the plan supports multi-currency (e.g., Xero Comprehensive or MYOB AccountRight Premier)
- Check system restrictionsAvoid QuickBooks Online if using QuickBooks Commerce or cash flow planner
- Enable multi-currency with cautionOnce enabled, cannot be turned off – confirm workflow with your accountant first
Key checks before enabling multi-currency in Australian accounting software
- Is the correct plan subscribed to?Check whether the plan includes multi-currency (e.g., Xero Comprehensive, MYOB AccountRight Premier, QuickBooks Online Essentials+)
- Can the home currency be changed?No – once set, it cannot be changed in most platforms
- Are bank feeds available for foreign currencies?Only AUD or NZD supported in MYOB Business – may require manual entry
- Is there a risk of system conflicts?Yes – QuickBooks Online Multicurrency incompatible with QuickBooks Commerce
Make the decision
Ask each provider to demonstrate the same fictional foreign invoice, part receipt, separately identified fee and unpaid month-end balance. Add a foreign bill paid after its entry date. Have the presenter show the source, saved rates, resulting records and reports.
Record each gap as a subscription limit, configuration task, manual control or accounting decision. Choose the setup whose routine transactions and exceptions your team can trace without an unexplained balancing entry.
Include the people and recurring tasks needed to keep the workflow usable: who can configure the file, enter transactions and review balances, and how foreign statements will be captured when a feed is unavailable. For AccountRight Premier, MYOB says the company file administrator must enable the multi-currency preference.
In this guide
- Comparing transaction and reporting currenciesSeparate a foreign invoice balance from its functional-currency value and the currency used to present reports.
- Checking documented exchange-rate sources used by softwareCheck a software rate’s source, direction, date and override before comparing it with a bank conversion or report.
- Reconciling foreign-currency payment feesTrace a foreign payment from invoice through fee, conversion and payout to the bank while retaining the gross amount.
- Reviewing currency adjustments with an accountantPrepare the records, rate evidence and reports an accountant needs to review a foreign-currency adjustment.
