Currency conversion

[bizman]

What's the proper method for currency conversion when invoicing customers and purchasing services that are not in Euro.

Heard conflicting reports from 2 advisors and haven't been able to get a proper answer off revenue (Yes I'm in the market for a really competent accountant...)

What we've been told is to use the daily central bank rates on the day of the invoice for both sales and purchases.

from

Euro Exchange Rates | Central Bank of Ireland

Official euro exchange rates from 1999 to the present.

www.centralbank.ie

But another is telling us to use the monthly customs rates from revenue.ie

This is all for the supply and purchase of services if that matters.

Who is right, are they both right?

 

[cremeegg]

It makes only a timing difference, so unless you are preparing daily accounts the monthly rate is fine.

 

[bizman]

It makes only a timing difference, so unless you are preparing daily accounts the monthly rate is fine.

Hey cremeegg, thanks for your reply, is it also acceptable to be using the central bank daily rates?

 

[cremeegg]

Hey cremeegg, thanks for your reply, is it also acceptable to be using the central bank daily rates?

I won't pretend that I know more than I do, but when you get paid and convert that back into Euro that gives your actual income, so the exchange rates used in the interim make little difference. If you invoice and are paid in the same accounting period, they make no difference.

 

[bizman]

OK so the value of the currency in euro on the day it lands in your bank account is the relevant one for accounting, CT etc?