Multi-Currency Shopify Stores: How Xero or QuickBooks Handle Foreign Sales

Feeling confused about how to handle foreign sales in your Shopify store? You’re not alone.

Global ecommerce is growing faster than ever. With international orders coming in from Europe, Canada, Australia, and beyond Shopify store owners are waking up to the reality of multi-currency chaos.

Your Shopify dashboard shows sales in various currencies. But how do you report those in your books? What exchange rate is right? How do you avoid errors in tax filings or profit reports? Most importantly: Can Xero or QuickBooks actually handle all of this properly?

Let’s break this all down in simple English no jargon, no confusion. Just straight answers.

The Rise of Global Shopify Stores

Ecommerce isn’t local anymore. A growing number of Shopify merchants are expanding to global markets. You might accept payments in:

• USD for American customers
  
• GBP for UK buyers
  
• EUR for European shoppers
  
• AUD, CAD, and even JPY or SGD
  

But with global reach comes multi-currency accounting nightmares:

• How do you record that €120 sale in your GBP-based books?
  
• What exchange rate should apply: Shopify’s? The bank’s? The accounting software’s?
  
• What happens if the exchange rate fluctuates the next day?
  

These aren’t minor details. One bad setting in Xero or QuickBooks can leave you:

• Reporting wrong profits
  
• Paying incorrect taxes
  
• Getting in trouble during audits
  

That’s why understanding how these tools handle foreign currency is critical.

How Shopify Records Foreign Sales

Let’s start with Shopify itself.

Shopify supports multi-currency sales natively especially if you’re using Shopify Payments. It allows you to list prices and accept payments in multiple currencies. Sounds great, right? But there’s a catch.

What Shopify Records:

• The order amount in the customer’s currency (e.g., $100 USD).
  
• The converted amount in your store’s default currency (e.g., £78 GBP).
  
• The exchange rate used at the time of sale.
  
• Payment processing fees and refunds also in the customer’s currency.
  

Shopify converts these internally so your dashboard shows your “home currency” totals. But when it comes to accounting, things get murky.

Here’s why:

Shopify ≠ Accounting Tool

Shopify is not an accounting system. It:

• Doesn’t apply accounting standards.
  
• Doesn’t sync exchange rates reliably to Xero or QuickBooks.
  
• Doesn’t generate financial reports (P&L, balance sheet) with audit-grade accuracy.
  

That’s where integrations like Xero or QuickBooks step in.

How Xero Handles Multi-Currency for Shopify

Xero is strong with multi-currency but only if it’s set up right.

Key Xero Multi-Currency Features:

• Supports 160+ currencies.
  
• Uses daily mid-market exchange rates from XE.com.
  
• Automatically revalues foreign balances at month-end.
  
• Shows gains/losses due to currency movement.
  

How Xero Connects with Shopify:

You’ll typically use an app like A2X, Synder, or Amaka to connect Shopify with Xero. These tools:

• Pull order data from Shopify (including currency).
  
• Convert amounts based on actual exchange rate used in Shopify Payments or PayPal.
  
• Create invoices or summaries in Xero in your base currency.
  
• Record the payment and fee in appropriate currency accounts.
  

Smart Workflow:

1. A French customer pays €120 via Shopify.
   
2. A2X records the sale in Xero as an invoice.
   
3. The amount gets converted to your home currency (say £102) at the exact rate.
   
4. Xero applies a monthly revaluation to foreign balances.
   

Common Xero Issues:

• Exchange rate mismatches between Shopify and Xero.
  
• Fee entries missing from payouts (leading to profit overstatements).
  
• Apps like A2X not syncing in real-time (causing reporting delays).
  

If not set up correctly, you could double-count income or understate expenses.

How QuickBooks Handles Multi-Currency for Shopify

QuickBooks Online also supports multiple currencies but it’s slightly more rigid.

QuickBooks Multi-Currency Features:

• Supports multi-currency contacts (customers, vendors, banks).
  
• Automatically pulls daily rates from IHS Markit.
  
• Records realized and unrealized currency gains/losses.
  

But here’s the catch…

Limitations of QuickBooks Multi-Currency:

• Once enabled, it cannot be turned off.
  
• You must assign a default currency to each customer/supplier.
  
• Changing currencies mid-transaction can break automation.
  
• Shopify payouts must be manually mapped to each currency account.
  

Shopify to QuickBooks Integration:

Apps like A2X, Synder, or Bold Commerce help bridge the gap. Here’s how it works:

1. Customer pays $100 USD on your Shopify store.
   
2. App pulls this transaction and creates a sale in QuickBooks.
   
3. The exchange rate applied may be different from Shopify’s.
   
4. You must reconcile payout deposits from Stripe, Shopify Payments, or PayPal.
   

QuickBooks Risks:

• You may see currency discrepancies between Shopify and QuickBooks reports.
  
• Reconciling bank deposits in multiple currencies is more time-consuming.
  
• Some cheaper connector apps don’t handle fees or refunds correctly in foreign currencies.
  

So, while QuickBooks can handle foreign currencies, it needs tighter controls.

Common Mistakes to Avoid with Multi-Currency Shopify Accounting

Here are some costly (but fixable) mistakes that trip up global Shopify merchants:

1. Not Enabling Multi-Currency in Xero or QuickBooks

If you haven’t enabled it, all your foreign transactions will convert incorrectly or not post at all.

2. Using the Wrong Exchange Rate

Shopify uses one rate, Xero/QuickBooks use another. If your integration app doesn’t align them, your books will be off.

3. Not Recording Shopify Fees

Many merchants forget that Shopify deducts processing fees in the original currency. Not recording these means overstated income.

4. Ignoring Currency Gains/Losses

Exchange rates fluctuate. If you’re holding foreign balances (e.g., in Stripe or PayPal), Xero and QuickBooks must revalue those every month.

5. Using the Wrong App

Not all apps handle multi-currency properly. Some create 1 transaction per order (clutter), others miss refunds or bundle fees badly.

Best Apps to Sync Shopify Multi-Currency with Xero or QuickBooks

Not all connector apps are built the same. If you’re selling internationally, pick one of these:

A2X Accounting

• The most robust for Shopify + Xero/QuickBooks.
  
• Breaks down payouts, sales, refunds, fees per currency.
  
• Converts amounts using Shopify’s actual exchange rate.
  
• Trusted by accountants.
  

Synder

• More flexible, great for Shopify + PayPal/Stripe combo.
  
• Handles real-time sync and multi-currency mapping.
  
• Works for QuickBooks and Xero.
  
• Has smart reconciliation features.
  

Amaka

• More affordable.
  
• Works well for Xero + Shopify.
  
• Handles summaries, not individual orders (great for high volume).
  
• Limited customization, but solid for basics.
  

Real-World Example: Let’s Say You Sell Globally

Imagine you’re based in the UK and just sold:

• $120 USD item to a U.S. customer
  
• €99 EUR item to a German customer
  
• $150 AUD to a customer in Australia
  

Shopify collects all of these, but deposits them into your Stripe account after deducting fees. Now…

• How do you record that in your books?
  
• What exchange rate do you apply?
  
• Do you show $120 as £92.40 today? What if the rate changes tomorrow?
  

That’s why apps like A2X step in they take all that data and plug it into Xero or QuickBooks accurately, using actual payout details and conversion rates.

How to Future-Proof Your Multi-Currency Accounting

Whether you’re using Xero or QuickBooks, here’s what smart global sellers are doing:

1. Enable Multi-Currency Early

Even if you’re not selling internationally yet, turn this on before your first foreign order. Easier to manage from the start.

2. Use a Trusted App to Bridge Shopify

Avoid manual CSV imports or basic apps. Use A2X or Synder to manage:

• Foreign orders
  
• Exchange rates
  
• Payment fees
  
• Refunds
  

3. Reconcile Monthly Not Yearly

Don’t wait until tax time. Reconcile all payouts monthly. Check currency gains/losses. Make sure balances reflect reality.

4. Work with Ecommerce Accountants

General accountants often miss ecommerce-specific currency workflows. Choose a partner who knows Shopify, Xero, QuickBooks, and global sales.

Want Help Setting Up Multi-Currency Accounting for Your Shopify Store?

Setting up Shopify with Xero or QuickBooks properly is not a DIY job.
Done wrong, it can cost you thousands in reporting errors, tax miscalculations, and missed refunds.

At eSeller Accountant, we help ecommerce brands like yours:

• Set up multi-currency Shopify integrations
  
• Fix foreign currency mismatches
  
• Reconcile global payouts accurately
  
• Automate your monthly bookkeeping
  

Let’s talk. Book a free consultation today and get peace of mind that your global accounting is finally in sync.

FAQs About Shopify Multi-Currency Accounting

Q1: Can Shopify automatically sync currency rates to Xero or QuickBooks?
No. Shopify doesn’t push its exchange rates to accounting tools. You need a connector app to do that properly.

Q2: What if my customer pays in USD but I report in GBP?
Your accounting system must convert the amount using the right exchange rate on the sale date. Otherwise, your books will be inaccurate.

Q3: What’s the best accounting software for international Shopify stores?
For most merchants:

• Xero = Best for automation and ease-of-use
  
• QuickBooks = Better if you already use it and understand its multi-currency system
  

Q4: How often do I need to update exchange rates?
Xero and QuickBooks update them daily, but you should still review revaluations monthly to reflect any currency gains/losses.

Q5: Does PayPal also create multi-currency problems?
Yes. PayPal stores funds in original currencies, and fees may differ from Shopify. Your connector app must handle PayPal + Shopify + Stripe properly.

Final Thoughts: Don’t Let Currency Confuse Your Growth

Multi-currency ecommerce is exciting but also risky.
One mistake in how Shopify, Xero, or QuickBooks handle foreign transactions can snowball into big reporting problems.

So take control:

• Use the right tools.
  
• Connect your apps carefully.
  
• Get expert help when needed.
  

Go global but keep your books local and accurate.

Ready to Simplify Multi-Currency Accounting?

Let us help you build a clean, global-ready accounting system.

Book Your Free Consultation Now
We’ll review your setup and guide you step-by-step.