Multiple Currencies

When you work with multiple currencies, keep a separate book for each currency. How you structure the flow between books depends on your business processes, regulations, and local requirements. Some operations use intermediary accounts to track fees, taxes, and spread; others simply record mirror transactions in both books and reconcile exchange gains or losses periodically.

Regardless of your process, the principle is the same: one book per currency, linked through intercompany or operation accounts.

Simple transfer example

Here is a straightforward remittance from Brazil to the United States.

Book 1 — BRL

In the Brazilian book, the transfer moves funds from the local bank to an asset account representing the US operation:

Date	Amount	From Account		To Account	Description
14/11	240.00	Banco	>>	US Operation	Transfer to USA

The US Operation account is an asset — it represents money held abroad from the Brazilian perspective.

Book 2 — USD

In the US book, the same transfer is recorded as funds arriving from the Brazilian operation:

Date	Amount	From Account		To Account	Description
14/11	60.00	Brazilian Operation	>>	Bank account	Transfer from Brazil

The Brazilian Operation account is a liability — it represents an obligation to the Brazilian entity from the US perspective.

You can later settle the intercompany balance by paying the Brazilian operation back, or clear the remaining balance as an outgoing expense or incoming revenue depending on exchange rate variations.

Note

This is a simplified example that reflects one possible process. Your actual setup may differ depending on regulations, intermediary banks, and how you handle exchange fees.

Aggregating reports across currencies

You can consolidate the Balance Sheet and Profit & Loss statements from multiple currency books into a single report using the Google Sheets Add-on.

Tracking gains and losses from exchange variation

When you hold balances in multiple currencies, exchange rate fluctuations cause gains or losses over time. To track these periodically:

1. Fetch the relevant account balances from each book using the Google Sheets Add-on
2. Calculate the balance in the other currency using a formula like =GoogleFinance("CURRENCY:USDEUR")
3. Record the difference back to the book as incoming revenue (gain) or outgoing expense (loss)

Tip

If you deal with many transfers and accounts across currencies, this process can become laborious. Consider automating it with the Exchange Bot.