How I setup QuickBooks for Bureau De Change – Learn the simple way to deploy financial software solution for currency exchangers on the cloud or desktop
What makes a great financial software consultant is not the excellent knowledge of accounting and finance but exceptional skills in understanding clients’ IT needs and customising an existing low-cost off the shelf software to deliver the right solution while making them happier. This is the reason BigResources Solutions is the leading accounting software partner in Nigeria – we have deployed QuickBooks more compared to other accounting software.
QuickBooks is not only simple to use but the flexibility in building a custom chart of accounts, tweaking certain account types, redesigning windows and seeing the result of your customization instantly makes it one of the best accounting software used in Nigeria. One sector where I have demonstrated a high level of competence in QuickBooks customization is in financial service; currency exchange business popular known as a bureau de change.
Request For Our Accounting Software ServiceFor over 5 years, I have implemented QuickBooks for more than 152 companies under Retail, Manufacturing, Oil & Gas, Real Estate & Construction, Travels, Hospitality, Corperatives, NGOs, Financial & Service Sectors.
- Landmark Centre (Event Centre)
- Mountain Ice Travel & Tour (Travels)
- BTS System (Service)
- Logos Travel Support & Solutions Ltd (Travels)
- Germaine Auto Centre (Autos)
- BD Consult (PR)
- Starlight Nigeria (Retail)
- Temple Private School (Education)
- C. Charles Resources Limited (IT consulting)
- Adeniyi Coker Consultants Limited (Real estate and construction)
- The Nigerian Economic Summit Group (NGO)
- Value Mart Supermarket (Retail)
- Transweb Bureau De Change (Financial Service)
- Wakanow Travels (Travels)
- Vektro Food Limited (Manufacturing & Retails)
- Orient Petroleum PLC (Oil & Gas)
- Plus More
Although I have initially posted a general article on accounting software for bureau de change, this review is more detailed as I will be using what implementing QuickBooks for a local bureau de change in Lagos was like, to help you get yours right.
Bureau de change, even though they are into foreign currency transaction, should be treated like a retail based business if you must get your accounting software setup right. This is based on the premises that they buy products too (currencies) and resell to customers. But, if you don’t follow the steps outlined here, you might not only end up generating wrong financial report but also experience a multiple problems caused by dual accounts; two different that mimic your bank and inventory account respectively where in actual sense, what you have in your domiciliary account, which is where you sell currencies, should be the same as your stock balance (currency on hand).
So in your statement of financial position (balance sheet), you are expected to treat your bank balance as currency stock on hand too.
Setting up QuickBooks for BDCs:
- To load all currencies (USD, EUR or Pounds), create an item for each of these foreign currencies, enter quantity on hand (or at bank) and map it to “their individual bank account under asset account”; this is the field that merges the stock and bank account feature in one account head. The advantage of following this tip is that when you buy more currencies, your bank balances will increase and quantity on hand increase by units added. Also, when you sell via bank transfer to SMEs or individual customers, your bank balance is debited and stock on hand falls by the same sales value.
- Talking about buying and selling more currencies, I activated exchange rate (use Naira as the home currency) and added normal current account (Naira) and domiciliary accounts (USD, EURO & GBP); this makes it easy for clients to buy currencies from CBN or other BDCs, using the Naira account at official or parallel market rates, into their domiciliary accounts. On sales, the invoice and receipts are there to track credit and cash transactions.
- On inventory report, you can always refer to different reports; stock valuation (currency on hand and their value), stock activities (transaction details of each foreign currency), physical stock count (to check what you have in the bank and the value reported in QuickBooks for reconciliation purposes).
- Adding to sales, you can view account receivables of your top customers, and transaction history.
- Also note that as exchange rate fluctuates, you can update your rate for USD, EURO, GBP manually. This gives like to exchange rate gain/loss or unrealised gain or loss.
- The banking features in QuickBooks lets you transfer fund between accounts, reconcile bank statements.
Finally, the overall report section shows the actual profit or loss position of your bureau de change with trend analysis.
While these will help you get started faster and on the right now, you can also contact us if you have questions or want us to implement QuickBooks for your BDC.
Send a mail to firstname.lastname@example.org or call 08105090001