How to Use Wave in Multiple Currencies as a Freelancer
Hi all, I'm new to Wave and accounting in general, so please forgive any 'duh!' mistakes or questions!
MY BANK ACCOUNTS
I work online and travel constantly. For the first time, I've decided to get my accounting ducks in a row and sort out invoicing ect. My main bank account used to be in South Africa (ZAR), but now I've switched to Revolut so I can work in a more stable currency (GBP) as well as receive money from clients in other countries (for example, AUD in Australia). The bank account gives me a base account and various separate accounts in a few currencies. When I'm in a country that uses the right currency, my card will pay with that, else I transfer the money over into GBP as an interbank exchange rate. I also receive money from Paypal (in USD) that I generally send to my ZAR account for various reasons.
HOW I GET PAID
I get paid in multiple ways. The most common is via Upwork which works in USD. I send a bank transfer from Upwork to my GBP account on Revolut. When I get paid via Paypal in USD, I send it to my South African account (ZAR) as my Revolut card sometimes has issues withdrawing money. Recently, clients have started depositing directly into my Revolut account via direct payment (for GBP customers) and swift transfers (for all other currencies). When I bill clients like this, I usually bill in USD and convert it to their currency using the current exchange rate.
HOW I USE MY MONEY
I often withdraw cash in whatever country I'm in as many shops don't accept cards in Asia. I also use my ZAR and GBP cards to pay for general living expenses. I use my accounts like an employee would, rather than a business. To add to the madness, I also have a savings account which I occasionally dip into to cover cash flow issues.
Whew, so now you know the back story, here's a few things that I'm having a little trouble with. If you could shed some light on them, I'd be very appreciative.
1. What base currency should I use? USD because I've been historically billing in that? GBP because my new account is in that?
2. I'd like to set up automatic payments, but I do not have a credit card. If I do get a credit card, it'll probably have to be in ZAR, which is a volatile currency, to say the least. Not sure if I qualify for a credit card elsewhere as I have no credit history (although I do have a British passport).
3. When I spend money on my accounts, it's in a different currency, is that a problem?
4. How do I separate my personal and business spendings if I am a freelancer and they are the same thing (at this time). I'd like to switch to paying myself a salary, but it doesn't make sense when I don't have a regular income (or a month's buffer cash).
5. How do I categorize my personal savings account to not show up on my business account?
Wow, mammoth post. If you think I could benefit from any help documentation or something, feel free to send it my way. Thank you!