Managing multiple currencies in Xero can streamline your international transactions. With the multi-currency feature, you can easily handle invoicing and payments in various currencies. Here’s how to get started: 

1. Enable Multiple Currencies

  • Log in to your Xero account. 
  • Go to Settings and click on Currencies (this feature is available on premium plans). 
  • Select Enable Multiple Currencies to activate the multi-currency feature in Xero. 

 

2. Set Up Foreign Currencies

  • In the Currencies section, click Add Currency to add the currencies you will be working with. 
  • Xero will automatically fetch the daily exchange rates for the currencies you add, ensuring accurate conversion. 

 

3. Invoicing in Foreign Currencies

  • When creating an invoice, select the appropriate foreign currency from the currency drop-down menu. 
  • Xero will automatically calculate the exchange rate for the date of the transaction, so you don’t have to manually adjust for currency fluctuations. 

 

4. Paying in Foreign Currencies

  • When recording payments to suppliers or vendors, select the relevant currency. 
  • Xero will automatically convert the payment amount using the current exchange rate, and it will adjust your financial reports accordingly.