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The key rule
A US-dollar business bank account holds USD. Your Canadian-dollar reporting may translate it, but the underlying USD bank balance should remain in USD. Changing the currency of a transaction or inventing a CAD transfer is not a safe way to force a match.
1. Confirm the bank account currency
In Business bank account setup, verify the correct currency before importing. Use the USD account for USD statements, and review the opening and closing amounts as USD figures.
2. Keep transaction details in the right currency
Import and review USD deposits, payments and fees against the USD statement. An invoice paid in USD still needs the right customer, receivable and FX handling; a category suggestion does not automatically determine exchange differences.
3. Work through a simple example
Your USD bank starts at US$1,000, receives US$450 and pays US$120. Its closing bank statement amount is US$1,330. You should reconcile that USD figure first, rather than comparing directly to a converted CAD total.
4. Treat cross-currency transfers carefully
If you move money from CAD to USD, the bank may use a trade rate and charge a conversion spread or fee. Review the transfer legs, amounts and rate; don't make two unrelated deposits that inflate income. Cashflow applies safeguards to cross-currency transfers and USD-ledger edits, but you still need to verify the accounting entries.
5. Separate the reporting translation
The CAD reporting value will depend on the appropriate FX rate and valuation date. The Bank of Canada publishes indicative daily CAD conversion rates; your financial institution's executed rate can differ. Bank of Canada daily FX.
Next: period-end FX adjustments.
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