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Hi Jonathan, when you say presentational and functional currency is USD - does the organisation pay taxes in the US? If so it would be recommended that you pick US when setting up the org.
Alternatively, if US is one of the currencies that the org regularly deals and transacts in but pays taxes in the UK it would be recommended that you select UK and the client is on an org that includes multi-currency in it's plan.
We appreciate customers would like to see more capability with currency in Xero - most recently we have added the ability to run the newer Profit & Loss, Balance Sheet and Budget Variance reports in other currencies an org uses.
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Michael French
supported this idea
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I understand that if an organization is registered and pays taxes in the UK, defaulting the base currency to GBP makes sense from a system-design standpoint. However, not allowing an override removes essential flexibility for companies whose functional or presentation currency differs from their tax jurisdiction.
In practice, there are often more relevant factors than tax location in determining an entity’s base currency, especially for holding companies, multinationals, and groups requiring consolidation across subsidiaries.
I’m currently transferring a UK-registered holding company to Xero whose financials are in EUR. To migrate its balances cleanly without artificial FX differences, I’ve had to use an uncertain workaround: selecting an EU country during setup just to enable EUR as the base currency, then manually correcting all other details back to the UK. That’s not ideal, and it risks unintended side effects.
It would be far more robust if Xero allowed users to override the default currency at setup (with an appropriate warning) so that the software can accommodate legitimate, internationally compliant structures without forcing users into inaccurate configurations or unsupported workarounds.