This is a question that comes up a lot. One of the best features of Stripe is that it allows you to seamlessly operate in multiple currencies and convert it all back to your main currency with zero input from you.
However that can cause an accounting nightmare in Xero, depending on how you want to do your books and how many currencies you work with.
That is because Xero only allows one currency per account.
Before you start syncing Stripe transactions to Xero, you need to really think about how you want things to look. Do you really need multiple currencies in Xero, or is converting it all into your home currency good enough?
Using Silver Siphon, you have two options. The example below uses Aussie Dollars (AUD) as the home currency, charging customers in USD. These are for example purposes only and they could be any currency in your setup.
- Set up one account in Xero, in AUD. Stripe automatically converts everything to your home currency. This is the most popular method, the way we do things in our business, and usually the easiest. If you choose this method, on the Services page make sure “use original currency” is unchecked (the default)
- Set up two (or more if you have more than two currencies) accounts in Xero, one in USD and one in AUD. The main reason you would use this method is if you need to reconcile against invoices in Xero and you want the amount to match exactly in the same currency. You can still match AUD to USD invoices, it’s just a little trickier and won’t match automatically.
The issue with this method is that the accounts balances in Xero will keep moving in one direction (AUD up, USD down) as there is no balancing between the two currencies – Stripe only transfers to your bank account in the one lump sump of AUD. If you go this way, you can link multiple Xero accounts on the services page. If you have already set up an account, you can unlink Xero and then relink, selecting multiple accounts.
Hope that helps!