What currency must UK statutory accounts be prepared in?

UK limited companies must prepare statutory accounts in GBP, with foreign transactions translated at the transaction date under FRS 102 Section 30.

Which exchange rate should I use for VAT conversion?

HMRC requires a consistent method; recognised sources such as the ECB's daily reference rates are acceptable, and switching methods mid-period is a common compliance error.

What is an unrealised FX gain or loss?

It's the difference between the value at which a foreign balance was originally posted and its value when retranslated at the closing rate on the reporting date, and it appears in profit and loss even without any cash movement.

Should a startup use software or a managed bookkeeper for multi-currency accounts?

Software handles automated postings and rate conversion well, but a managed provider like KeystoneFA adds the compliance judgement and disclosure work that software alone doesn't cover, particularly as transaction volume and investor scrutiny grow.

How often should foreign currency balances be reconciled?

Currency bank accounts should be reconciled monthly against their own ledgers, with a full revaluation of outstanding balances carried out at each statutory reporting date.

Multi-currency bookkeeping for startups: what to do now

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Keystone Financial Advisory Limited is a private limited company registered in England and Wales with company registration number 16711561.

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