Multi-Currency

Multi-Currency Accounting in Bench

Bench is a multi-currency accounting system, enabling businesses to manage transactions in multiple currencies seamlessly within a single company.

This article explains how Bench handles multi-currency operations and how exchange rates affect reporting and entries.

≡ƒîì What is Multi-Currency Accounting?

Multi-currency accounting allows businesses to:

Transact with customers, suppliers, and banks in different currencies.
Maintain financial reports in a single base (company) currency.
Track foreign currency balances and conversion impacts.

≡ƒÅó Company Currency

When creating a company in Bench:

You must select a Company Currency.
This currency is permanent and cannot be changed after company setup.
All financial reports, such as the Trial Balance and Profit and Loss Statement, are produced in this currency.

≡ƒöÆ The company currency cannot be disabled.

≡ƒÆ▒ Currency Setup and Exchange Rates

Upon company creation:

Bench automatically creates a chart of accounts in:
The company currency, and
All other enabled system currencies.

How Transactions Work

When a transaction is created:

It is recorded in both:
The transaction currency (e.g., USD, EUR), and
The company currency (for consolidated reporting).
This requires a valid exchange rate to be available between the two currencies on the transaction date.

If no rate is found, the system will prevent the entry from being saved.

≡ƒôê Reporting in Multiple Currencies

Report	Currency Used
Trial Balance	Company Currency
Profit & Loss	Company Currency
General Ledger	Transaction Currency (with company currency shown for conversion)

This allows you to view detailed transactions in the original currency, while still maintaining consistent reporting in the base currency.

≡ƒöº Enabling & Disabling Currencies

You can enable or disable currencies at any time based on your business needs.
Bench will stop offering disabled currencies as options in forms and transactions.
The company currency is always enabled by default and cannot be disabled.

Γ£à Best Practices

Task	Recommendation
Setting up exchange rates	Ensure rates are updated daily or as needed for accuracy.
Reporting	Use company currency reports for tax and compliance; use transaction currency reports for operational analysis.
Disabling currencies	Only disable currencies that are no longer in active use.