Introducing multi-currency invoices
If you conduct business internationally, there may be times when it’s natural to invoice your customers in a foreign currency. Invoicing in another currency is seen as a courtesy to your customers and can make it easier for them to pay, but it involves a bit more work on your behalf.
Issuing invoices in foreign currencies helps you provide superior customer service, demonstrate that you’re willing to go the extra mile, and minimise confusion between yourself and your client.
So whether you have a large international client base or only occasionally sell to customers abroad, it’s important to understand whether you can invoice in another currency, how to convert your prices, and how to deal with any discrepancies in exchange rates.
Important considerations for foreign currency invoices
When you issue an invoice in a foreign currency, you need to ensure that:
Foreign currency invoices are legally compliant with your country’s regulations.
If compliant, your prices are accurately converted into the foreign currency using an up-to-date exchange rate.
Any variations in the exchange rate that lead to exchange gains and losses are accounted for in your books.
Benefits of invoicing in foreign currencies
If your business operates internationally, it may be necessary to create invoices in foreign currencies. While business-to-business sales may often operate across currencies, business-to-consumer sales may benefit from converting prices into your customers' local currency. It can improve your communication with your customers, reassure them about the price they’re paying, and demonstrate that your business is customer-focused.
If a customer receives an invoice in their local currency, this may actually speed up payments and therefore, increase your business’s cash flow. Generally, converting your prices into a foreign currency can make it easier for customers to understand and assess your prices.
Benefits of quoting your customers in foreign currencies
Just like foreign currency invoices, it’s also possible to create quotations in foreign currencies. By quoting your customer in their local currency, your prices will immediately make sense to them and they'll be able to compare your quote with competitors.
If you choose to quote your customer in their local currency and it's accepted, it's expected that the invoice will also be given in that currency. Consistency is important.
Create multi-currency invoices with SumUp
SumUp Invoices is a free invoicing software that can help you create legally compliant invoices in over 170 currencies.
Once you've created a SumUp account, click on ‘Invoices’ in your SumUp dashboard and create a new invoice. Then, click on the settings icon at the top to select your desired currency. Simply enter the amount in the foreign currency, and SumUp Invoices will automatically convert it to your local currency based on the daily exchange rate.
After recording your payment, you can easily identify any exchange gains or losses and easily record them for your accounting records.
