For UAE businesses billing internationally, multi-currency is essential. Zoho Books handles up to 200 currencies with daily FX rate feeds. Setting it up correctly takes 30 minutes; getting it wrong creates years of FX reconciliation pain.
What you'll learn
→ Enabling multi-currency → Per-customer and per-vendor currency → FX gains and losses → Multi-currency bank accountsEnabling multi-currency
Settings → Currencies → Add Currency. Add USD, EUR, GBP, SAR, and any other currencies you transact in. Zoho ships with daily exchange rate feeds; verify they are enabled (Settings → Preferences → Auto-update exchange rates).
Set your base currency to AED, once, and immutably. Every report rolls up to AED. Foreign currency transactions are translated at booking, with FX gains/losses calculated automatically at settlement and at period-end.
Per-customer and per-vendor currency
Each customer record has a Default Currency. Set it to the currency you bill them in. The customer's invoice generates in their currency; the GL records in AED. Same for vendors, bills come in their currency and are recorded in AED.
If you bill a customer in multiple currencies, leave the default and override per invoice. Zoho applies the FX rate at invoice date for the AED translation. Subsequent receipt at a different rate generates an FX gain/loss automatically.
FX gains and losses
Zoho tracks two FX impacts: realised (when a foreign currency receipt or payment differs from the booked amount) and unrealised (when foreign currency balances are retranslated at period-end). Both flow to a separate P&L line.
Run Reports → Foreign Currency Adjustments before each VAT and CT close. The report shows every FX gain/loss in the period. Review for any unusual items, large unrealised gains/losses can swing reported profit and may need disclosure.
Multi-currency bank accounts
If you hold a foreign-currency bank account (most UAE banks offer USD, EUR, GBP), set it up in Zoho with the right currency. Transactions in that account post in the foreign currency and translate to AED at the booking rate.
At month-end, Zoho retranslates the account balance at the closing rate. The difference between the original AED amount and the retranslated AED amount is unrealised FX. Document this for your auditor.
This guide is general information, not professional advice. For situations that involve specific facts, talk to your accountant, or hire one of ours from the marketplace.