We tell you what accounting is like when you export and how to make a multi-currency invoice.
With the rise of the Internet and digital businesses , small and medium-sized companies have been encouraged to internationalize their business as a way to grow and increase sales.
From the moment you sell products or services in a foreign country, you will need to prepare a multi-currency invoice. To prepare it, you will have to consider:
Who do you invoice (businessman, professional or individual)?
Where your customer resides (in the European Union or outside the European Union).
What are you going to invoice (services or goods and products).
When do you invoice, as currencies fluctuate every day and the exchange rate may vary.
What is a currency?
Although we may identify foreign exchange as a foreign currency, it is actually a much broader concept that encompasses any means of payment and positions in foreign currency.
In short, it is a measure that you agree upon with your client or supplier abroad.
The most commonly used currencies are:
The Euro
The US dollar
The yen
The pound sterling
The Swiss Franc
All of these currencies change their exchange rate every transportation email list day and this will influence the invoice you prepare, since you will have to determine the exchange rate to apply.
What to consider when preparing a multi-currency invoice?
Here are some tips you can follow:
Agree with your foreign customers or suppliers on what currency will be used and what exchange rate will be applied in the transaction.
You can invoice in a currency other than the euro, but you must record the invoice in euros in your accounting.
