Multi-currency accounting in Australia

Key takeaways:

• Multi-currency accounting helps Australian businesses manage FX risk, cash flow, and compliance without heavy admin.

• Real-time FX monitoring and reconciliation improve accuracy and reduce costs by highlighting spreads and execution rates.

• Airwallex simplifies global bookkeeping with multi-currency accounts, transparent pricing, and integrations that support Australian businesses.

Globalisation means Australian companies now manage multiple currencies daily. From paying suppliers in Asia to receiving revenue from North America, handling foreign currencies is a core part of growth. Multi-currency bookkeeping keeps reporting accurate, ensures compliance, and builds confidence with investors, regulators, and customers.

The Australian market is increasingly exposed to cross-border trade. International trade accounted for more than 45% of Australia’s GDP in 2024¹, with exports and imports spread across dozens of currencies. Without effective multi-currency bookkeeping, many businesses risk overpaying on conversions or missing compliance obligations.

This guide explains what multi-currency accounting is, the challenges faced by businesses in Australia, and how you can simplify it with modern tools like Airwallex.

What is multi-currency accounting?

Multi-currency accounting refers to keeping accurate financial records when a business operates in more than one currency. For Australian companies, this happens when selling to overseas customers, paying international suppliers, or running teams abroad.

Many businesses also use multi-currency business accounts to hold and pay in different currencies without constant conversion. Multi-currency accounting brings about challenges, including volatile exchange rates, strict compliance rules, and the complexity of consolidating accounts across borders.

How does multi-currency accounting work?

Modern accounting software simplifies multi-currency bookkeeping by automating conversion, reconciliation, and reporting. For Australian companies, Airwallex integrates with leading platforms including NetSuite, Odoo, QuickBooks, Sage, and Xero^5.

These integrations are designed to be GST and ATO compliant, allowing businesses to sync transactions automatically, manage books and invoices, and streamline reconciliation, reducing manual work and strengthening compliance.

What are the benefits of multi-currency accounting?

Accurate reporting

Create a single source of truth across currencies with consistent conversion rules, timestamped rates, and clear tracking of realised and unrealised FX gains and losses.

Faster close and higher efficiency

Automate matching and reconciliation so finance teams close faster, reduce manual checks, and spend more time on analysis.

Cash flow control and lower FX costs

Hold and pay in foreign currencies to avoid forced conversions, compare executed rates to benchmarks, and reduce spread and fees.

Higher conversion at checkout

Price and settle in customers’ local currencies to remove friction and reduce cart abandonment for international buyers.

Compliance and audit readiness

Maintain ATO- and AASB-aligned records with full audit trails, consistent policies, and supporting documentation for IFRS reporting.

Scalability for multi-entity groups

Consolidate subsidiaries efficiently with tools that handle intercompany, eliminations, and multi-ledger reporting in AUD.

The challenges of multi-currency accounting

Managing finances across different currencies comes with unique challenges that Australian businesses must address to stay accurate and compliant.

Exchange rate volatility

Foreign exchange (FX) rates are the prices at which one currency can be exchanged for another. They shift constantly and are unpredictable, creating accounting complexities. This volatility can distort reporting and cash flow if not carefully managed. Small businesses are particularly vulnerable, with margins often eroded by small moves in exchange rates.

Compliance and reporting requirements

Australian businesses must meet ATO requirements² and report in AUD. They also need to meet Australian Accounting Standards (AASBs)³ and IFRS standards⁴ if they operate internationally. Poor record-keeping or inconsistent conversion methods risk penalties and audit issues.

Consolidation and reporting complexity

Companies with subsidiaries across borders face the challenge of consolidating financials in different currencies. Reconciling these into AUD financial statements requires consistent policies and reliable technology.

Manual errors

Many businesses still rely on spreadsheets. Manual work increases the risk of error, slows processes, and creates inefficiencies that modern tools can eliminate.

How secure is multi-currency accounting?

Security depends on the systems in place, including how platforms protect funds, data, and transaction flows⁸. Strong governance means using licensed providers, segregated accounts, and enterprise‑grade security standards. Australian businesses should confirm that any provider complies with ATO and ASIC requirements while also meeting international benchmarks.

Airwallex is regulated by ASIC and holds customer funds with trusted financial institutions. The platform meets global standards including PCI DSS, SOC1, and SOC2 compliance, and applies bank‑grade encryption across all services. These measures safeguard sensitive information, protect against fraud, and ensure that reconciliations and FX conversions remain accurate and transparent.

What is real-time currency conversion and reconciliation?

Reconciliation ensures that financial records reflect actual transactions and balances. For multi-currency businesses, this process becomes much more complex. Automated reconciliation can track transactions across currencies, speed up month-end closing, and give finance leaders clear visibility of cash flow.⁶

According to Thunes, cross-border payments grew by more than 13% year-on-year in 2024⁷. This surge makes automated reconciliation essential, as manual processes cannot keep up with the scale and speed of modern multi-currency transactions. Automating reconciliation reduces errors, accelerates month-end close, and ensures finance teams maintain full control as transaction volumes continue to rise.

How can businesses monitor real-time FX conversions?

Monitoring FX conversions in real time helps businesses track costs and stay compliant. A practical playbook includes:

1. Connect a real-time FX API: Access bid, ask, and mid rates plus forwards directly in your ERP or BI dashboards.

2. Normalise data: Standardise currency pairs and timestamps to ensure accurate snapshots across systems.

3. Capture executed rates: Record the exact rate and timestamp from your payments platform for each transaction.

4. Compare against benchmarks: Check executed rates against mid-market or WMR intraday to quantify spreads.

5. Set alerts and feedback loops: Trigger alerts on variance thresholds and feed insights back into provider or route selection.

This process not only improves transparency but also supports audit readiness. Multi-source aggregation and ERP connectors help meet ATO and auditor expectations for consistent FX documentation.

How to do multi-currency accounting with Airwallex

Managing multi-currency bookkeeping becomes far simpler when you bring the right tools together. Airwallex helps Australian businesses streamline the entire process from payments to reporting:

Open multi-currency accounts

Receive, hold, and send money in more than 20 currencies without forced conversions. This keeps FX costs predictable and supports natural hedging when revenues and expenses align in the same currency.

Integrate with accounting platforms

Airwallex connects directly with Xero, QuickBooks, Sage, Odoo, and NetSuite. These integrations sync transactions automatically, reduce manual entry, and give finance teams a single source of truth across currencies.

Automate reconciliation

Real-time reconciliation tools match incoming and outgoing transactions across multiple currencies. Automation reduces errors, saves hours of manual work, and ensures that reports stay accurate and audit‑ready.

Monitor FX exposure

Dashboards, APIs, and configurable alerts give visibility into transaction and economic exposure. Teams can track executed vs benchmark rates, identify spreads, and adjust conversion strategies quickly.

Stay compliant

Airwallex maintains timestamped FX records and generates automated reports aligned with ATO, AASB, and IFRS requirements. This helps businesses demonstrate compliance and stay prepared for audits.

Simplify multi-currency accounting with Airwallex

Multi-currency accounting presents both challenges and opportunities for Australian businesses. With global payments revenues forecast to reach US$3.2 trillion by 2027, the need for robust multi-currency systems will only increase.

Airwallex provides the tools to make it simple. From multi-currency accounts to corporate cards and Xero integrations, we help businesses streamline accounting, improve compliance, and reduce FX risk.

Airwallex is more than a payments provider. We help Australian businesses simplify global bookkeeping through:

• Transparent pricing with no hidden fees

• Access to interbank FX rates, saving up to 80% on conversions

• Local account details in 20+ currencies

• Fast transfers with over 90% processed on local rails

• Secure, regulated infrastructure trusted by 150,000+ businesses globally

Multi-currency accounting: frequently asked questions

What are the key ATO compliance requirements for multi-currency accounting in Australia?

Australian businesses must keep accurate records in AUD for tax purposes, even when transactions occur in other currencies. The ATO requires consistent documentation of exchange rates, clear application of conversion methods, and complete records of all foreign currency dealings. Businesses also need to comply with international reporting standards such as IFRS if operating globally.

How does a multi-currency account help Australian businesses manage international transactions?

A multi-currency account lets Australian businesses hold, receive, and send money in multiple currencies without constant conversion. This cuts down on FX costs, improves cash flow, and allows suppliers and customers to transact in their preferred currencies. Platforms like Airwallex integrate these accounts directly with accounting software, making reconciliation simpler and faster.

What accounting software features are essential for multi-currency accounting?

Key features include automatic conversion with live FX rates, multi-currency invoice handling, and seamless integration with banking and payment systems. The software should generate reports in both foreign currencies and AUD, reconcile transactions accurately, and maintain full audit trails for compliance. Advanced tools also offer expense management and real-time reporting.

How can Australian businesses minimise foreign exchange exposure in their bookkeeping?

Businesses can reduce exposure by matching income and expenses in the same currency, using forward contracts to lock in FX rates, and keeping multi-currency accounts to avoid unnecessary conversions. Continuous monitoring of FX fluctuations and applying consistent revaluation policies also help keep financial records accurate while limiting volatility.

What are the latest regulatory changes affecting multi-currency accounting in Australia?

Updates include evolving ATO guidance on GST for cross-border services and stricter requirements for documenting FX rates used in reporting. Globally, new standards around CRS and FATCA reporting also affect Australian businesses with overseas operations. Companies need to stay on top of both local and international compliance changes.

How does invoice processing software integrate with multi-currency accounting systems?

Modern invoice software automatically detects currencies, applies the correct exchange rates, and syncs with accounting systems for accurate record keeping. These tools handle invoices in multiple currencies, convert values for reporting, and maintain audit trails. When connected with expense management, all foreign currency transactions are properly categorised and reconciled.

Sources:

1. https://tradingeconomics.com/australia/trade-percent-of-gdp-wb-data.html

2. https://www.ato.gov.au/businesses-and-organisations

3. https://www.ifrs.org/use-around-the-world/use-of-ifrs-standards-by-jurisdiction/view-jurisdiction/australia/

4. https://www.ifrs.org/issued-standards/list-of-standards/

5. https://www.airwallex.com/au/integrations

6. https://www.airwallex.com/au/blog/what-is-accounting-reconciliation

7. https://www.thunes.com/news/top-growth-drivers-in-consumer-cross-border-payments/

8. https://www.airwallex.com/au/blog/is-airwallex-safe