Multi-Currency Accounting

Multi-Currency Accounting Services in India

What is Multi-Currency Accounting?

Multi-Currency Accounting is the process of managing financial transactions, invoicing, and reporting in more than one currency. It is essential for businesses in India engaged in international trade, exports, imports, and foreign investments. This system allows companies to record transactions in foreign currencies while maintaining statutory compliance with Indian regulations such as Income Tax, GST, FEMA, and RBI filings.

Multi-Currency Accounting ensures smooth cross-border transactions, accurate foreign exchange (Forex) conversions, and compliance with statutory filing requirements.

Types of Multi-Currency Accounting Services in India

1. Foreign Currency Transactions Recording

   • Import & export invoicing in multiple currencies

   • Vendor & customer payments in USD, EUR, GBP, JPY, etc.

   • Real-time exchange rate application

2. Forex Conversion & Valuation

   • Daily conversion of foreign transactions into INR

   • Unrealized gain/loss tracking due to exchange fluctuations

   • Compliance with Ind AS 21 (Effects of Changes in Foreign Exchange Rates)

3. Compliance & Statutory Filings

   • GST filings for export/import transactions

   • TDS compliance on foreign remittances

   • RBI/FEMA filings such as FLA Return, FC-GPR, FC-TRS

4. Multi-Currency Reporting

   • Balance Sheet & P&L in multiple currencies

   • Consolidated group reporting for multinational entities

   • MIS reports for management in both INR & foreign currencies

5. Specialized Industry Support

   • Export houses & IT/ITES service providers

   • E-commerce businesses dealing with international clients

   • NGOs & corporates receiving foreign donations/investments

Advantages of Multi-Currency Accounting & Compliance

• Global Business Enablement: Supports international trade & cross-border payments.

• Regulatory Compliance: Ensures adherence to FEMA, RBI, GST & Income Tax rules.

• Accurate Forex Valuation: Tracks exchange rate fluctuations transparently.

• Investor & Stakeholder Confidence: Clear financials in both INR & foreign currencies.

• Improved Decision Making: Real-time global financial insights.

• Audit & Filing Ready: Simplifies statutory filings & audit preparations.

Requirements for Multi-Currency Accounting in India

• Registered Business Entity (Company, LLP, Partnership, Proprietorship, NGO, etc.)

• Import Export Code (IEC) for foreign trade

• PAN, TAN, and GST registration (if applicable)

• FEMA/RBI compliance (for foreign investments & remittances)

• Bank accounts supporting foreign currency transactions

• Accounting system/ERP with multi-currency features

Documents Required for Multi-Currency Accounting & Statutory Filing

• IEC (Import Export Code) Certificate

• PAN, TAN & GST registration certificates

• Foreign invoices & contracts (imports/exports)

• Bank FIRC (Foreign Inward Remittance Certificate) & SWIFT messages

• FEMA/RBI approval letters (if applicable)

• Tax payment challans (GST, TDS on foreign payments)

• Audited financial statements

• Previous year foreign transaction records

Our Multi-Currency Accounting Services help businesses across India manage cross-border transactions, ensure compliance with FEMA, RBI, GST & Income Tax, and simplify statutory filings. From forex conversion to audit-ready reports, we deliver end-to-end global accounting solutions.