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What is a multi-currency accounting system?
If you receive and send payments in other currencies than Singapore dollar, you need a multi-currency bank account. You then need to report for these transactions just as you do for all the others. A multi-currency accounting system records transactions in foreign currencies, adds them to financial statements and tax reports.
What are the multi-currency accounting standards?
The key part of multi-currency accounting is to show what the transaction was worth in base currency (that is, SGD) at the time it transpired. That’s why your invoices would usually show both: the foreign currency and its Singapore dollars equivalent as suggested by the IRAS requirements for foreign currency transactions.
What do I need for multi-currency accounting?
To set up multi-currency accounting, you’ll need:
- A multi-currency bank account. Make sure they process payments quickly and without high currency exchange fees.
- Bookkeeping platform to manage paperwork, Xero multi-currency accounting software being the most popular one.
- An accountant who has experience managing multiple currencies to put together reports and statements. Alternatively you can do it yourself if you have time and know what to do.
We provide hassle-free multi-currency accounting
We take over the paperwork routine, file reports, and give active advice. Our multi-currency accounting comes at a flat monthly fee, so no extra charges out of the blue.I want to try
You get a personal accountant
A Chartered Accountant assigned to your company will track filing deadlines, suggest tax exemptions, and prepare reports
You see how much money you have
We show totals from all your multiple currency accounts in Singapore dollars
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What is a multi-currency accounting system?
A multi-currency accounting system refers to an accounting system, often an online accounting software, which handles an organisation’s transactions across multiple currencies. It is used for companies that receive or pay amounts in currencies apart from the base monetary denomination used in the country they operate from.
For example, in Singapore, a business might have clients in the US or Europe or countries in Asia. Each would transact in their own currency while the company is incorporated in Singapore and pays taxes in Singaporean dollars. A multi-currency accounting system would automatically calculate exchange rates and present all the information in local currency.
Why do I need multi-currency accounting?
If you are a business operating in Singapore, then ten to the one you are dealing with several currencies. As the gateway to Southeast Asian markets, Singapore is a melting pot of companies and entrepreneurs from all over the world. Naturally, money from trading partners and customers flows in and out in a bewildering range of currencies – making accounting complex and extracting reports and insights even tougher.
So if you plan to run your business across nations and manage business transactions in diverse currencies, then you will certainly need a multi-currency accounting system and a multi-currency bank account.
How does multi-currency accounting work with you?
With us, you get Xero-powered Osome platform and a personal accountant. Xero’s multi-currency accounting software allows businesses to add a base currency and specify the country where they file their taxes. The rest of the system is set up automatically. After that, you can add as many as 160 different currencies. The exchange rates are updated every hour automatically, and all transactions are converted and presented in the local currency in real-time.
At Osome, we regularly use multi-currency accounting software such as Xero to manage our clients’ financial needs. We process your invoices and receipts, prepare financial statements and management reports, file taxes and come up with exemptions and reliefs for your business.
Does Xero’s online accounting software handle multiple currencies?
Yes, Xero, which is one of the most widely used accounting software, has a multi-currency accounting feature. The software can handle up to 160 currencies and allows clients to add even more. The software automatically calculates the latest exchange rates (this is updated hourly) and gives businesses a real-time view of their cash flow.
Is it possible for me to hold foreign currency in my business bank account?
To transact in foreign currency, you need foreign currency or a multi-currency account. In Singapore, many local and global banks offer this facility.
A multi-currency account allows businesses to transact without paying steep exchange rates and reduce the processing time. The main banks offering multi-currency accounts in Singapore are HSBC, Standard Chartered, DBS OCBC, and UOB. Each has a slightly different offer, so it’s best to check on their individual sites for detailed information.
How to use a DBS multi-currency account?
A multi-currency account with DBS allows clients to hold up to 12 foreign currencies, as well as Singapore dollars in one account. You can also buy foreign currencies round the clock and get a linked Visa debit card. Opening the account is extremely simple and attracts no account opening fee.
There are 4 types of DBS Multi-Currency Accounts, and each has unique fees and features. You can use a DBS account to withdraw cash in any of the linked currencies, make payments, shop online, or make investments abroad.
What is an OCBC multi-currency account?
OCBC offers multi-currency accounts for both personal use and business customers. Personal multi-currency accounts offer US checking services, and Global saving is a feature that allows customers to hold 8 currencies in their accounts. A business account has more features and can be opened in either US dollars or euros; it also can hold 8 different currencies. Only business accounts have linked debit cards.