One of the quite efficient features that is offered by QuickBooks is the ability to work with multiple currencies. Considering the fact that accounting software is used all around the world, this is one of the most efficient features QuickBooks hold. However, there can be times when companies might not like this feature and not want to continue with it. With the help of this article, we’ll learn about how to remove Multiple currency feature in QuickBooks.
How to Remove Multiple Currency Feature in QuickBooks
Follow the below steps to know how to remove Multiple currency feature in QuickBooks.
Always Backup your QuickBooks
It is always essential to backup your QuickBooks. Before making any specific changes into your QuickBooks file, backing it up would be beneficial. One of the prime reasons behind this is that in case anything goes wrong in the process of removing the feature of multi currency, you always have the other option of restoring your file into its original form.
To create a backup of your QuickBooks, go to File > Back Up Company > Create Local Backup. Follow these exact steps to create the backup of your QuickBooks File.
Understand the Effects of Removing Multi-Currency
Before removing the effective feature of Multi Currency, it is extremely important to understand the effects it can lead you to. Once you are successful in removing the multi currency option, you will end up losing certain features. You will no longer be able to record the transactions that you make in any currency but only in your home currency. Any existing transaction will also be converted into your currency and any foreign currency account will automatically converted into your home currency. You won’t be able to display any transaction in foreign currency but only in your home currency.
Make a List of Foreign Currency Accounts & Transactions
To make your transition hassle free, make a compiled list of all the foreign currency accounts and transactions in your QuickBooks File. With a list, you will be able to identify any transaction that needs to be converted. It will also help you in making sure that all your foreign currency accounts are correctly converted to your home currency.
Convert Foreign Currency transactions into Home Currency
Now that you know all the foreign currency transactions you can easily convert them into home currency. To initiate this process, go to the transaction option in QuickBooks and click on the currency field. From the dropdown menu, choose home currency. Now QuickBooks will convert the transaction to your home currency.
Convert Foreign Currency Account to Home Currency Account
Now that you are through with the conversion of Foreign currency into home currency, you should now focus on converting foreign currency accounts into home currency accounts.
To initiate this process, in QuickBooks go to the chart of accounts and select the foreign currency account that you want to convert. Select the Edit account and change the currency to your home currency. Now you have all your accounts converted into your home currency.
Update your Exchange Rates
Now that you are free with all the conversion of your foreign currency accounts to home currency accounts, it is essential to update your exchange rates.
The process includes the following steps: go to Lists > Currency List > click on the currency that you want to update > Edit Currency Exchange. For the final step, enter the new exchange rate and click save. QuickBooks will update the exchange range for that currency.
Run Reports To Verify Accuracy
Now that the Multi currency feature is removed, it is extremely important to run reports to verify the accuracy of it. This helps us understand if all conversions were possible and successful or not. If verified properly, then you know all foreign currency transactions were successful.
Removing the multi currency feature can be a hassle but with all the right ways, it can be initiated in an efficient way. All you need to see is if your QuickBooks are backed up or not. Your QuickBooks backup can create a major difference in the result of the process. Therefore, it is always advised to keep your QuickBooks updated. By following all these tips, we can ensure you will successfully remove the Multi Currency in QuickBooks.
Frequently Asked Questions
What is the estimated time taken after remove multi-currency?
After your files are received, it usually takes around 48 hours.
How do I upgrade my subscription if I’m using Multi-currency?
Considering the fact that QuickBooks changes its multi numerical values when Multi Currency is initiated. So, you’ll need to upgrade or downgrade your subscription into a version that can support Multi-currency.
Once I have turned on multi-currency, can I turn it off?
Multi-currency cannot be turned off once enabled since going forward, the system will need to account for the currency conversion data. If you have clients, suppliers, or bank accounts that don’t utilize your local currency, then only turn it on.