Question

Accounting for US stock trades with Canadian currency conversion

Forum|Forum|3 years ago
September 27, 2022
1 reply
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I have a US dollar trading account which I have to reconcile in US dollars each month. I need to convert transactions such as stock purchases and sales as well as dividends in Canadian dollars for income tax purposes. When I run the Balance Sheet report for my fiscal year, the balance amount for the US dollar trading account does not agree with the balance I see in the chart of accounts. The balance sheet uses the original Canadian dollar amount transferred from the bank, rather than the converted USD amount that shows in the bank transfer record.

How do I trade in a USD account and still create reports for tax purposes.

Thank You,

Wayne

QuickBooks Desktop

Jen_D

I'd be more than happy to share with you the behavior of our reports when Multicurrency is enabled in QuickBooks Online, @WayneJL,

Normally, the system uses your home currency on Financial Reports to show the actual funds of the company. The total projected income from unpaid balances is multiplied with the current foreign exchange rate to help businesses review their cash inflows during the Fiscal Year.

If you'd like to see the raw data based on the currency billed for a foreign clients, you can use the A/R Ageing Detail or a Transaction List by Customer Report. Here are the steps to do that:

Go to the Reports menu and type Transaction List by Customer on the search field. You can also find this under Sales and customers.
From there, click the Customise button.
Tap the blue Change columns link to expand the options.
Update the Report period.
Mark the boxes for Foreign Amount, Foreign Net Amount, Currency, Exchange Rate, Due Date and A/R Paid.
Press Run report when you're done.