Foreign Currencies Bookkeeping Question

by Glenda
(Canada)

Foreign

Foreign

I have a new client who deals in US $ and does not need to exchange into CAD $ as he pays his expenses, salaries etc. all in US $.


I am writing from Canada. Where should I get the exchange rate from for recording the transactions as the books have to be kept in CAD $.

I was thinking of the Bank of Canada noon rate. Are there any rules with CRA regarding this?

Thank you!

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Jul 17, 2023
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Recording CAD in USD
by: BB

When recording transactions in Canadian dollars (CAD) for a client dealing in US dollars (USD), it is important to use an appropriate exchange rate.

While the Bank of Canada noon rate can be a reliable source, it is advisable to consult the Canada Revenue Agency (CRA) guidelines for specific rules and requirements.

The CRA provides guidelines on the acceptable methods for determining exchange rates for tax purposes.

These guidelines may include using specific exchange rates published by the CRA or using rates provided by recognized financial institutions.

It is important to ensure compliance with the CRA guidelines to accurately report transactions and maintain proper accounting records.

To determine the most suitable exchange rate for your client's transactions, consult the CRA guidelines or seek guidance from a tax professional or accountant familiar with the specific requirements for recording foreign currency transactions in Canadian dollars.

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Foreign Travelling Pastor Bookkeeping

Pastor Bookkeeping

Pastor Bookkeeping

I do the bookkeeping for a consultant/pastor and she travels oversees to minister/teach. She never requires or asks for any compensation when she goes, but if she receives money does she have to claim that as income?

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Dec 27, 2017
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Bookkeeping For Pastors Compensation
by: Stephanie

Thank you for your question about bookkeeping for a pastor who travels oversees to minister/teach.

Traveling pastors/ministers are typically considered to be independent contractors (self-employed) under the common law.

When a minister performs ministerial services, all of the earnings, including wages, offerings, and fees that are received for performing marriages, baptisms, funerals, etc., are subject to income tax.

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