I need a few questions about the same problem and topic.
I have a client who wants to pay inUSD and also wants invoices in USD, since he is outside Denmark / EU so he needs invoices for his office record and accounting. How do I deal with this situation? Can I do my whole setup with USD invoices and report the same for tax. Will SKAT accept USD invoices and also if there is any problem doing business in US Dollars
Thats fine with tax. You will need to either do all your accounting i USD or to enter the DKK value at time of invoicing and then make correction for loss/gain on currency when paid. You can only have your bookkeeping in one currency
Thank you so much for the reply. that clears a fear and very basic but important step for me. much appreciated.
another question popped up which I should have asked with my questions and that is if I am able to do my entire business in USD then how do I keep expenses as in terms of receipts which I spend locally and I get those receipts in DKK and not in USD. I mean eventually, I will be doing my business invoices in USD but local expenses all in DDK how should I go about that?
As in first answer - you bookkeeping has to be in either USD og DKK - DKK recomended in Denmark to make year end clearer and easier
Anyway you will therefor have to use the today exchange rate to get everything to either DKK or USD
If you invoice 100 USD - and on the day of invoice that is 6,40 dkk, you note 640 DKK and if you are then paid - and the exchangerate has changed so you receive 630 DKK, then you book the 630 against payment of the invoice and another 10 DKK as loss on currency against the rest of the invoice
I do not think you can manage all this yourselv - so I would work with on online bookkeeper
Depending on how you US income is created - you may find you need a US company registration - but that is not something I can advise on her in details
it makes complete sense to keep everything in DKK but since I get paid against my services and buyers are located in USA, UAE so it is logical to keep current in USD but of course, as you said I cant do this all myself therefore I signed up billy and dinero and they both have no option to show two currencies on one invoice.
Buyers need invoices in USD for their taxation and so on. i am working from Denmark so I think I do not need to register a company in the USA (btw I am into Web Development & Programming so clients could avail those services from me from anywhere in the world if I am not wrong)
my head is spinning after looking at the amount of work it will involve to keep two different currencies in perfect bookkeeping.
as for for your advice I have an idea of how it needs to be done also thanks to you for the pros/cons but with all honesty, I have no workflow and no idea where to start and how to start