If your company has locations sprinkled around the globe, how do you manage foreign currency risks? As operations expand, acquisitions are made, and the supply chain becomes deeper. As such, you will surely find yourself working with multiple currency exchange rates. Handling exchange rates doesn’t have to be a big deal if you have the right software in place.
Businesses often rely on Excel spreadsheets to share foreign exchange data between subsidiary locations and the main headquarters. Once the data is received and checked for errors, it often becomes obsolete because emailing financial data is a time-consuming process, especially when there are language differences. Microsoft Dynamics® GP is one of the more comprehensive enterprise resource planning (ERP) software solutions that can handle the nuances of working within multiple geographical regions and with multi-currencies. The Multi-currency module in Microsoft Dynamics GP will enable you to register transactions in their originating or functional currency. The transactions are then converted using the applicable exchange rate. Exchange rates can be adjusted periodically— for example, weekly or monthly—as they can fluctuate often. Monetary assets and liabilities are translated at the rates according to the balance sheet date. The adjustments that may be made from exchange changes are posted on a profit/loss account. The powerful reporting features in Microsoft Dynamics GP will enable you to print and share any number of financial reports, and in any currency.
As your business grows and expands into regions with different currencies, you will want to carefully monitor exchange rates and how they impact your bottom line. Not many software packages include multiple language options or can be customized to manage regional reporting, taxing, or other regulatory differences. Microsoft Dynamics GP can help you monitor and manage the effects of changes with foreign exchange rates. Always consult your tax advisor for accounting advice, especially as it pertains to foreign currency exchanges. Contact The Resource Group for additional details regarding Microsoft Dynamics GP and the Multi-currency module so you can monitor foreign exchange rates at each of your locations across the globe.
By Earl Hunt of The Resource Group, Seattle-based Microsoft Dynamics GP Partner