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Exchange rate issue

AGKAGK Member Posts: 3

I have a client that I bill in USD who does the exchange herself and pays me via paypal in CAD. I'm fine with it - but I'm not sure how to account for it. Any ideas?

in Accounting Technical Support

Comments

  • SamdSamd Member Posts: 552 ✭✭✭

    That's a good question @AGK. I would definitely suggest running it by an accountant (and if there are any in the community that could back up, or entirely shoot down, my workflow, that would be much appreciated!). I'm going to first point you to our guide on Accounting for Foreign Currency.

    Assuming you're receiving the funds into your CAD bank account, you'd need to manually mark the invoice as paid using the deposit of funds into your bank account. Wave will likely calculate a slightly different exchange rate however, so you may need to account for those via the realized/unrealized gains/losses in the article above so that you can reconcile while accounting for the discrepancy between the calculated and actual exchange rate.

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