My coy is in CDN but it prepares its FS in USD. Has 2 two banks (BMO & Chase). BMO (USD and CAD), the chase account is USD. Whats the home currency on QBO USD or CAD?

Thank you for reaching out to the Community and providing detailed information, mosh1.

Setting up the Home currency in QuickBooks Online (QBO) depends on your specific preferences and what works best for your business operations.

Generally, the Home currency in QBO is initially based on the country where you signed up and created your account.

However, since you mentioned that most of your income and expenses are in USD, you can set your Home currency to USD to better align with your financial transactions and reports.

I highly recommend consulting your accountant for precise guidance, they have the expertise to suggest the most suitable Home currency for your business and ensure it complements your financial workflow and reporting requirements.

Additionally, you can utilize the Multicurrency feature in QBO, which allows you to enter transactions in different currencies without changing your Home currency.

For more details, you can refer to the article: Multi-currency FAQ.

Please let us know if you have any further questions or need additional clarification.

I would like to add to this conversation as I am confronted with issues pertaining to income received in USD but tax home and home currency are in CAD.  I set up a USD bank account to receive funds into Canada, then transfer those funds into a CAD account.  My current setup is to invoice the customer in USD to receive the funds (Client insists), then I create a journal entry to make the transfer from USD to CAD while also accounting for capital gains.  Since the business is a sole proprietorship, I have set up Classes that divide personal expense from business expense.  Also as part of this, I break down housing expense between personal and business since I can only account for a percentage of the square footage in the home used for business.  I have it this way so that I can create reports that show the deductions I can take for the month and then transfer the net amount into a personal account.  All tax is transferred into a holding account until tax is due.  In total, I perform three bank transfers before I have completed the process of being paid (Monthly).  I want to record all transactions so that I can trash most of the huge Excel spreadsheet that manages ALL of our finances.  FYI. I am using QBO Plus.  

The question:  what is the best way to record all of these transactions.  The journal entry recording funds from USD to CAD doesn't want to match the transfer in the bank feed.  Also, when I record the journal entry to accrue our payroll, the numbers hit the reports correctly, but the transfers wont match.  Is there a better way, or are there additional steps I need to take?