This checklist is designed to ensure all steps are followed when processing foreign currency transactions, minimizing risks and ensuring compliance with financial regulations.
Determine if the transaction involves foreign currency exchange and note the specific currencies involved.
Check the current exchange rates from a reliable source and document the rates applicable for the transaction date.
Convert the foreign currency amount to local currency using the evaluated exchange rates.
Ensure that all necessary documentation related to the foreign currency transaction is complete and accurate.
Secure necessary approvals from management or finance team as per the financial policies before proceeding.
Input the transaction details into the accounting system, ensuring to reflect the foreign currency and the conversion.
After processing, keep track of any foreign exchange gains or losses that may affect financial reporting.
Ensure that the transaction complies with relevant financial regulations and internal policies concerning foreign currency transactions.