Hi, have a question about recording currency exchanges. I use a broker to exchange my currency. This has an online account which allows me to hold different currencies. I transfer pounds to the broker and this money sits in a bank account. and I can convert it into euros, which i can then transfer to my suppliers.

How do I record all this?

Hi Stephen,

If the money in your broker's account is denominated in pounds, simply
treat it like a bank account. At the time you make the payment to the
foreign supplier record a withdrawal from the 'bank account'

Hi Mark,

I’m getting into the habit of buying euros when the rate is good. How do I
record this?

Regards
Stephen

Hi Stephen,

Solar Accounts doesn't have a way to record multiple currencies in a single
business. I think the best approach is to create another asset account
such as 'EUR holdings' and enter the value of your Euros in UK pounds.
>From time to time you would need to revalue this asset and debit your EUR
holdings account and credit a 'Unrealised Exchange Rate Income' account (or
vice versa). However, I'm not an expert on this topic - please check this
approach with your accountant.