Using Bill.com for Multiple Currencies

Managing multiple currencies can be incredibly challenging for businesses using Bill.com.

Luckily, with some strategic planning and configuration, you can optimize Bill.com to smoothly handle foreign exchange and international payments across currencies.

In this post, we'll walk through essential tips for leveraging Bill.com's built-in multi-currency tools, from adding and managing foreign currencies to reconciling transactions and accessing competitive exchange rates.

Introduction to Multi-Currency Management with Bill.com

Managing billing and payments across multiple currencies can be challenging for businesses with international clients or vendors. Fluctuating exchange rates, foreign transaction fees, and reconciliation of different currencies are just some of the issues companies face.

Bill.com offers integrated multi-currency support to help streamline international commerce. This article provides an overview of using Bill.com with multiple currencies, including:

Exploring Bill.com's Multi-Currency Feature

Bill.com enables businesses to send invoices and record transactions in different currencies based on client or vendor preferences. Key capabilities include:

• Automatic currency conversion for international payments

• Bank-level foreign exchange rates applied to transactions

• Multi-currency reports for reconciliation

The Essentials of Foreign Exchange on Bill.com

Exchanging currencies is seamlessly integrated into Bill.com. Businesses can:

• Set up client and vendor currency preferences for invoices and bills

• Review current and historical exchange rates applied to transactions

• Avoid surprise fees with upfront currency conversion rates

Understanding these features allows companies to maximize value when using Bill.com across borders. The platform reduces the complexity of managing billing and payments globally.

Can Bill com handle international payments?

Bill.com can handle international payments by enabling users to pay foreign vendors in their local currency. This eliminates costly wire transfer fees and ensures vendors receive full payment amounts.

To enable multi-currency payments in Bill.com:

1. Activate the multi-currency feature in Account Settings

2. Add currency exchange rates under Currencies

3. Tag foreign vendors with their currency

4. Enter bills using the vendor's currency

5. Bill.com will automatically convert to USD during payment

When paying foreign vendors, Bill.com delivers funds in their local currency via bank transfer. There are no intermediary bank charges, so vendors receive full listed amounts.

Alternatively, vendors can opt to receive payments in USD. For USD wires, Bill.com charges a flat $9.99 transfer fee. While more costly than local bank transfers, USD wires offer predictable fees and locked-in exchange rates.

Overall, Bill.com smoothly handles international payments and currency conversion. The multi-currency feature eliminates costly wire transfer charges, ensures vendors get full payments, and simplifies reconciliation. For businesses paying foreign vendors, Bill.com is an invaluable tool for simplifying overseas payments.

How do I accept payments in different currency?

Accepting payments in multiple currencies can seem daunting, but with some preparation it can be straightforward. Here are a few tips:

• Enable currency conversion in your payment processor or accounting software. Solutions like Bill.com and QuickBooks allow you to accept payments in different currencies which are automatically converted to your home currency. This avoids manual conversion and reconciliation.

• Open a multicurrency bank account. Some banks offer business accounts that support holding balances in multiple foreign currencies. This streamlines receiving international payments.

• Use a foreign exchange service. Companies like TransferWise and CurrencyFair can accept payments from customers worldwide, manage conversion/transfers between currencies, and deposit funds to your account in your home currency. This simplifies international payment acceptance.

• Set clear policies. Document which currencies you accept and any additional fees required for international payments (to cover conversion costs). Communicate this clearly on invoices, checkout pages, etc.

• Optimize accounting. Record a journal entry when you receive payment in a foreign currency to track both the original amount paid and the home currency value after conversion. This aids reconciliation and reporting.

With the right tools and providers, accepting international payments doesn't have to be a challenge. Automated currency conversion and multicurrency accounts help minimize manual work so you can focus on your business.

How do I invoice in different currency?

When invoicing clients in a foreign currency, there are a few key pieces of information you need to include:

Bank Details

If sending or receiving payments via bank transfer, provide:

• IBAN (International Bank Account Number)

• Bank name and address

• SWIFT code

These details allow international bank transfers to be processed smoothly.

Currency and Amounts

Clearly state:

• The foreign currency being invoiced (e.g. Euros, Pounds Sterling)

• The amount due in the foreign currency

This avoids any confusion on what currency the amounts are denominated in.

Sender Details

Include your business name and address. This assists your client in identifying the correct invoice details.

By providing this key information on foreign currency invoices, you enable international payments to be made accurately while avoiding processing delays or fees. Check with your bank on any specific requirements they may have as well for international transfers.

Does BILL pay work internationally?

With over 130 countries supported, Bill.com has you covered for international payments and multiple currencies. Here are some tips for using Bill.com across borders:

• Enable Multi-Currency in your Bill.com account settings to activate support for international transactions and payments. This allows you to record foreign currency invoices and bill your international clients in their own currency.

• Set up Foreign Exchange rates so Bill.com can accurately calculate currency conversions when paying international vendors or reconciling foreign invoices. Rates can be manually entered or integrated with sources like XE.com.

• Connect an intermediary bank account like TransferWise to avoid high wire fees when paying foreign suppliers. TransferWise offers better exchange rates and lower fees than traditional wire transfers.

• Verify supplier bank details like SWIFT codes to ensure smooth payment delivery across borders. Ask foreign vendors to provide complete and accurate wire instructions.

• Review service fees for international payments so you can anticipate and account for costs when billing overseas clients. Fees vary based on payment method and destination country.

With some setup on exchange rates and banking, Bill.com can handle the complexities of international commerce and foreign currency transactions. Reach out to their support team if you need help managing multiple currencies or optimizing global payments.

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Maximizing the Benefits of Multiple Currencies in Bill.com

Bill.com offers several key advantages for efficiently managing transactions across multiple currencies, including:

Streamlining Currency Conversion with Bill.com

Bill.com automatically converts foreign currency transactions to the home currency specified in your account settings. This saves significant time by removing the need to manually calculate exchange rates and convert amounts.

Transactions are converted using competitive rates from major banks, ensuring you get fair pricing. The software seamlessly handles currency conversion behind-the-scenes, simplifying your international payments.

Accessing Competitive Exchange Rates through Bill.com

Bill.com sources foreign exchange rates from leading financial institutions. This gives access to institutional currency prices not available to individual consumers.

Rates are refreshed automatically multiple times throughout the day to reflect current market pricing. You avoid excessive bank fees or hidden markups on currency conversion.

This level of competitive pricing and transparency on foreign exchange helps maximize value on your international transactions.

Monitoring Foreign Exchange Gains and Losses

Bill.com provides detailed reports tracking gains and losses on currency conversion over time. This includes transaction-level detail showing the exchange rate applied and currency impact.

Monitoring this foreign exchange exposure is important for financial planning and mitigating FX volatility risk. The software makes this easy by automatically calculating and surfacing this key information across your multi-currency activity.

With these specialized reports, you can closely analyze currency conversion effects and adjust financial strategies accordingly.

Configuring Bill.com for International Bill Pay

To enable international bill pay in Bill.com with multiple currencies, there are a few key configuration steps:

Adding and Managing Multiple Currencies

1. Navigate to the Settings menu and select "Currencies"

2. Click "Add Currency" and search for the desired currency

3. Select the currency and click "Add" to enable it for transactions

4. Repeat steps 2-3 to add additional currencies as needed

Once added, you can manage currency details like format, symbol, and exchange rates within the Currencies settings.

Designating Your Home Currency in Bill.com

1. Go back to Settings and choose "Company Preferences"

2. Under "Currency", select your home currency from the dropdown menu

3. Click "Save Changes"

Your home currency will be used as the default for new transactions and for reporting purposes. Amounts in other currencies will be converted to the home currency based on configured exchange rates.

Choosing Exchange Rate Preferences

1. Navigate to Settings and select "Currencies"

2. Click the edit icon next to a currency

3. Under "Exchange Rates" choose your preferred source and frequency for updates

4. Click "Save Changes" to apply

It's recommended to use a major exchange rate provider that updates daily. This ensures currency conversions and reporting are based on accurate, up-to-date foreign exchange rates.

With multiple currencies enabled and preferences set, you can now pay international bills and vendors in foreign currencies within Bill.com. Conversion to the home currency will happen automatically using the exchange rates from your chosen source.

Executing International Payments via Bill.com

Making international payments can be complicated, with additional fees, exchange rates, and regulatory requirements to consider. Bill.com aims to simplify this process by integrating support for multiple currencies and international wire transfers.

Importing Invoices with QuickBooks Multi-Currency

When importing invoices from accounting systems like QuickBooks Online or Xero, Bill.com automatically detects the currency used. As long as your accounting system is configured for multi-currency transactions, the invoices will import seamlessly.

Key tips:

• Enable multi-currency in your accounting software first. QuickBooks Online allows you to manage transactions in over 160 currencies.

• Review imported invoices in Bill.com to ensure the currency and exchange rates are accurate. You can override any automated conversions if needed.

• Set vendor currency preferences in Bill.com to default to the appropriate currency for future transactions.

Wire International Payments with SWIFT Code Integration

To pay international vendors, Bill.com supports wire transfers using SWIFT codes.

To complete a SWIFT payment:

• Obtain vendor's SWIFT code and necessary wire details. Confirm with vendor first.

• Enter details when setting up vendor or on individual bills.

• Review wire fee estimates before submitting. Exchange rate will be locked in.

• Funds move from your bank account through intermediary banks before reaching vendor accounts within 5-7 business days.

Addressing Payment Fees for Foreign Transactions

International wire transfers involve fees from both your bank and any intermediary banks. These should display as part of the fee estimate in Bill.com before submitting a payment.

Tips for managing fees:

• Ask vendors if they can share fees or provide alternatives like local bank details.

• Compare Bill.com fees to costs for traditional wires done through your bank.

• Account for wire fees and all currency conversions properly in your bookkeeping.

With some preparation, Bill.com's multi-currency payment options can save significant time compared to traditional international payment methods. Reach out for any questions!

Reconciling Multi-Currency Transactions in Bill.com

Matching Transactions with Currency Conversion

When importing bank transactions into Bill.com that involve foreign currency payments, it's important to ensure the amounts match what was sent out from Bill.com. Since currency exchange rates fluctuate daily, you'll need to account for any differences.

In Bill.com, go to Reports > Payment Reports and export the report for the date range covering the international payment in question. This will show the converted amount that was sent. Then match that converted amount to what hit your bank account per their transaction record, taking into account any fees.

If there is a difference between what Bill.com shows was sent out and what the bank received, you will need to record a home currency adjustment in Bill.com when reconciling to account for the exchange rate difference.

Home Currency Adjustments for Exchange Rate Fluctuations

Due to daily fluctuations in foreign exchange rates, you may see a difference between the amount Bill.com converted and sent for an international payment versus the amount that hit your bank account. This can cause reconciliation issues.

To resolve any discrepancies, you can enter home currency adjustments when reconciling payments in Bill.com. Here are the steps:

1. Go to Banking > Reconcile

2. Find the international payment transaction

3. Click the action menu and choose Adjust home currency

4. Enter the adjustment amount to match your bank's transaction amount

5. Choose if you want the gain/loss booked to an Exchange Rate Variance account

6. Save the adjustment

Recording home currency adjustments will ensure your bank reconciliation is accurate in Bill.com when there are exchange rate differences on foreign currency transactions.

Tracking Exchange Rates Impact on Gains and Losses

With frequent international payments, fluctuating foreign exchange rates can lead to transactional gains or losses each time currency is converted. Bill.com provides reports to help track and quantify these amounts for accounting purposes.

The Payment Exchange Rate Variance report shows any realized gains or losses on foreign currency payments. Meanwhile, the Home Currency Adjustments report captures unrealized gains/losses from exchange rate differences entered during bank reconciliation.

Monitoring these reports allows you to identify trends and improve future exchange rate projections. The figures can also be used to book journal entries that record exchange rate variance for domestic tax and accounting compliance. Having the data on currency gains/losses enhances financial transparency.

Multi-Currency Tips and Tricks for Bill.com Users

Optimizing Payment Timing to Benefit from Exchange Rates

When making international payments, timing can be everything. Paying attention to currency exchange rate fluctuations and planning payments accordingly can lead to significant cost savings.

Here are some tips for timing international payments with Bill.com to maximize exchange rate benefits:

• Monitor rates daily: Check currency rates through your bank or sites like XE.com to understand rate movement patterns. Knowing if/when a rate may shift in your favor is key.

• Set rate alerts: Many banks and services allow you to set rate alerts, so you're notified if a rate hits a target number. This allows you to act fast to lock in a good rate.

• Schedule rate checks: Set calendar reminders to check rates regularly if you don't have automated alerts. For example, check rates 2 weeks before large scheduled payment dates.

• Plan payments in advance: Give yourself leeway to shift payment dates as needed to benefit from rate changes. Waiting even a few days could mean big savings.

Paying attention to exchange rates, setting alerts, and planning payment timing can optimize costs on Bill.com international payments. Every bit of savings goes straight to your bottom line.

Navigating Currency Risk with Forward Contracts

Sending international payments through Bill.com allows easy access to global vendors. However, it also exposes your business to currency risk - the chance that exchange rates will fluctuate against you.

Forward contracts allow you to lock in an exchange rate for a future date, eliminating currency risk:

• Mitigate risk: Fix a rate now for payment at later date. Protect against downward rate moves.

• Improve budgeting: Know exactly what future payments will cost today. Simplify financial planning.

• Increase competitiveness: Lower transaction fees can help keep prices down.

However, forward contracts have disadvantages to consider as well:

• Opportunity cost: You lose potential savings if rates move up instead of down.

• Inflexibility: The rate is set regardless of market shifts.

• Fees may apply

Evaluating your risk tolerance, payment timeline, and cash flow needs can determine if forward contracts make sense. For high-value or critical payments, protection may outweigh flexibility.

Leveraging Multi-Currency Reporting for Strategic Insights

As your international B2B payments grow through Bill.com, don't underestimate the strategic value of leveraging its rich multi-currency reporting features.

You gain visibility to understand the true costs of foreign transactions and identify opportunities:

• Exchange rate impact: Compare rates paid over time to spot savings potential

• Vendor analysis: See who has received most foreign currency payments

• Cash flow trends: Uncover seasonality in cross-border cash flows

• Payment method analysis: Assess where most fees are originating

With these insights, you can fine-tune processes for greater efficiency and cost control:

• Renegotiate vendor contracts based on total transaction costs

• Adjust payment timing around seasonal exchange rate fluctuations

• Switch payment methods to optimize fees

• Set budgetary benchmarks with historical data

Don't let international payments happen in the dark. Use Bill.com reporting to shine a light on foreign currency's full impact so you can make strategic decisions.

Conclusion: Embracing the World of Multiple Currencies with Bill.com

Summarizing Key Insights on Multi-Currency Management

When managing multiple currencies in Bill.com, it's important to:

• Set up currency conversion rules to automatically convert foreign transactions into your home currency

• Enable the multi-currency feature to match foreign transactions to bank/credit card charges

• Review currency conversion rates regularly and update as needed

• Reconcile any differences due to changes in conversion rates

Following these best practices will streamline your multi-currency workflows in Bill.com.

Taking the Next Steps with Bill.com

If you're ready to simplify foreign exchange and international payments, sign up for a free Bill.com trial. Their team can walk you through setting up multi-currency capabilities tailored to your business needs.

With powerful tools to automate currency conversion and reconciliation, Bill.com makes it easy to manage international workflows. Simplify payments, save time, and keep finances on track as you expand globally.

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