Barack Obama once said:
‘Globalization is a fact, because of technology, because of an integrated global supply chain, because of changes in transportation. And we are not going to be able to build a wall around that’
As the world comes closer through technology, international trade and multi-currency reporting are becoming an imminent part of any business.
Managing multiple currencies isn’t only a finance task. It’s a strategic function. Whether you’re a CFO, a manager, or a business owner scaling globally, understanding your multi-currency reporting is key to accurate financial health, compliance, and growth.
In this guide, you’ll learn:
- The key challenges of multi-currency reporting
- Methods for handling currency conversion
- How to stay compliant with international standards
- Tools and platforms that simplify the process
- Advanced strategies like hedging and treasury management
Why do you need multi-currency support for your business?
Picture finding a perfect pair of shoes online, adding them to your cart, and then at checkout, your currency isn’t supported. Disappointed, you abandon the purchase and move on.
Now picture your customers in that position. Not only do you lose sales, you may also lose potential customers for good.
A customer-friendly payment system enriches your business for the long run.
Multi-currency technology enables customers to pay for products in the currency of their own country. Without it, people are either forced to convert the currency themselves (a tedious task) or leave to find another site offering the same products.
A report by Forrester Research found that a significant share of European and US consumers buy goods cross-border online. Yet many ecommerce companies still don’t have the right tools to support those buyers.
Having to change the currency to euros, dollars, or anything else can discourage customers purely because of the friction. To some, it feels like a dead end.
Several companies have built solutions to remove that friction. Here’s how they work.
How does multi-currency payment support work?
Setting up multi-currency depends on your payment gateway and ecommerce platform. Most shopping carts don’t offer built-in support, but there are ways to enable it.
Here’s how to set up multi-currency support using popular payment gateways like PayPal, Stripe, and Braintree.
PayPal multi-currency setup
PayPal has a fairly simple process to accept international currencies. The first thing to do is remove the block in your settings.
- Step 1: Log in to your PayPal account.
- Step 2: Click the business profile icon next to the log, then click Profile and Settings.
- Step 3: Click My Selling Tools.
- Step 4: Untick the block on payments from users who have non-US (UK, etc.) PayPal accounts.
This allows currencies to convert automatically, so every time a customer pays in a foreign currency, it converts to the currency you hold.
Stripe multi-currency setup
For Stripe, adding currencies is fairly simple. Install the Stripe Multi Currency Addon.
Note: It is only compatible with WordPress websites. To begin, download the plugin and follow these steps:
- Step 1: Go to the Add New menu under the plugin interface.
- Step 2: Upload the plugin.
- Step 3: Click Install Now and activate the plugin.
After installing the multi-currency accounting software, configure the settings to enable multi-currency transactions.
- Step 1: Click the Settings menu under Stripe Payments.
- Step 2: Select the Multi Currency tab.
- Step 3: Mark the Enable Multi Currency box.
- Step 4: To customize the conversion fee, do so here, or leave it at the 2% default.
- Step 5: Mark Show Currency Select Box on each product. This lets customers choose the currency they want to pay in.
- Step 6: Select the currencies you want to offer and save changes.
You’re all set to deal in international transactions.
Braintree multi-currency setup
To access multi-currency in Braintree, integrate your Braintree account with your website. Before that, configure the settings in your Braintree account:
- Step 1: Log in to your Braintree account.
- Step 2: Once logged in, select the gear/settings icon at the top and select Business.
- Step 3: Click + New Merchant Account.
- Step 4: Enter your merchant account ID and make it the default account.
- Step 5: Select or deselect Accept PayPal. This step is optional.
- Step 6: Choose your currency and click Save.
Follow the same steps to add multiple currencies. Integrate your account with your website’s apps and you’re set.
Key challenges in multi-currency reporting
Nothing comes without problems. You may have a good multi-currency support tool, but how effective is it at multi-currency reporting?
Enabling multi-currency payments is one thing. Multicurrency reporting and multicurrency accounting across many currencies is another. Here are some common issues businesses face with multiple currency reporting:
- Exchange rate fluctuations: currency values change daily, which complicates accounting and requires careful tracking.
- Complex calculations: manually calculating exchange rates leads to errors and inaccurate financial reports.
- Time-consuming processes: managing transactions in various currencies is time-intensive without automated tools.
The result of doing multi-currency accounting by hand often looks something like this.
Fortunately, several companies have built tools that solve these problems and make the work far easier.
Top multi-currency reporting tools
There are several tools available to simplify multi-currency reporting and multi currency accounting. If you also need multi currency analytics on top of the raw numbers, the picks below cover both. Here are three worth knowing.
Putler
Putler is a multichannel analytics tool that pulls data from multiple sources (payment gateways, stores, shopping carts, and ecommerce platforms) and gives you both unified and independent reports from each.
Because Putler works with multichannel systems, it handles over 36 currencies and takes care of all currency conversions automatically.
Select your preferred base currency, and Putler converts all transactions to that base currency using the ongoing exchange rate. No more manual currency conversion. The result is clean multicurrency reports and multicurrency analytics from every channel in one place.
Beyond multichannel and multi-currency support, Putler has a range of other features that make it a crowd favorite.
Pros:
- 6 payment gateway integrations including Stripe, PayPal, Braintree, and more.
- Compatible with shopping carts and ecommerce systems.
- Multi-currency support for 36 currencies.
- Base currency can be changed in a single click, an ease not offered by other tools.
- Detailed reports on products, sales, subscriptions, visitors, customers, and more.
- Provides 153+ key business metrics.
- Works for both ecommerce and SaaS businesses.
- Key features like RFM, segmentation, forecasting, goal setting, and team sharing.
Cons:
- No mobile app.
Price:
Putler offers a 14-day free trial with no credit card required at signup. The base plan starts at $20/month. View Putler’s plans.
ChartMogul
ChartMogul is a subscription reporting and analytics tool that provides detailed reports on consumer data. It’s one of the better tools for businesses that want a deep analysis of their subscriptions.
Pros:
- Detailed overview of your revenue.
- Broad multi-currency support.
- Mobile analytics support.
- Various segments and a helpful overview of customer behavior and lifetime value.
- Trends and graphs of your business.
- Customizable.
Cons:
- Interface can take users time to learn.
- Fewer additional data integrations, which can hamper correlation with MRR and other user metrics.
- No currency data support for currency fluctuations.
- Tedious data configuration required to change base currency.
Price:
Freemium model with a free tier, then paid plans that scale with the ARR you track. Check ChartMogul’s pricing page for current figures.
Baremetrics
Baremetrics is one of the well-known subscription analytics tools. It’s known for insights, forecasts, and engagement metrics.
Pros:
- Integrates with 6 payment providers including Stripe, Google Play, and Recurly.
- One of the most user-friendly interfaces.
- Segmented insights like cancellation insights, MRR, LTV, revenue churn, trial conversion rate, and benchmarking.
Cons:
- Requires emailing customer support to change base currency.
- Limited scope of companies for data comparison.
- Multi-currency handling isn’t a core service, so finding your way around those metrics can be tricky.
Price:
Pricing is based on your MRR and scales as you grow. Check Baremetrics’ pricing page for current figures.
How do you set up multi-currency reporting in Putler? (Step-by-step)
It’s a fairly simple process.
- Sign up for Putler.
- Connect your data sources to Putler. (Putler has over 17+ ready integrations to choose from. If your data source isn’t directly integrated, Putler has an inbound API that can pull in data from any system with a few simple steps.)
- Select your preferred base currency. Note: this is the currency you want to see all your reports in.
- Putler pulls in data from your sources, handles the currency conversion, and shows you reports in your base currency.
How does Putler handle multiple currencies? [Example]
Here’s an example to make it concrete.
Suppose you have 3 websites: one serving the US, one serving Europe, and one serving India. You’ve connected all 3 stores to Putler, so Putler receives transactions in dollars, euros, and rupees.
If you’ve selected dollars as your base currency, Putler automatically applies the relevant exchange rate and converts the euro and rupee transactions to dollars, then shows you reports in dollars.
Benefit: this eliminates human intervention and the manual errors that come with it.
Final thoughts
As your business scales globally, multi-currency reporting becomes a necessity, not an option. Mismanaging it can distort your financials, while getting it right opens up clean insights and strategic agility.
Putler can be your co-pilot in multi-currency reporting. Try it now.
FAQ
Is multi-currency right for my business?
If you’re expanding globally, offering multi-currency support is essential. Without it, you risk losing sales from international customers.
What is multi-currency reporting/accounting, and why is it important?
Multi-currency accounting is the process of tracking and managing transactions in different currencies. It’s crucial for businesses operating globally because it provides a consolidated view of financial performance across markets. It ensures accuracy in financial reporting, helps with strategic decision-making, and keeps you aware of how exchange rates affect your business. For businesses in international trade, it offers insight into revenues, costs, and profitability in local currencies, giving a clearer picture of performance across regions.
What are the tax implications of selling in multiple currencies?
Tax rules vary by country, so consult an accountant familiar with international tax laws to ensure compliance.
How do I handle refunds and returns in different currencies?
Refunds should be processed using the same exchange rate applied during the initial purchase, to avoid discrepancies. Make sure your refund policy is clear to customers.
What are the best practices for multi-currency invoicing?
Always clearly state the currency and exchange rates used in your invoices. Make sure your invoicing software supports multi-currency billing for cleaner accounting.