How to report the profits and losses of my business currency transactions ?

have an LLC in Florida with election of S Corporation for tax purposes. I invoice in Euros my Europeens customers. They send me Euros in my Euros account (in Florida). After that, I sell Euros et buy US Dollars to a "regular US account". How can I report to IRS the profits and losses of my business currency transctions (that's not for investment purpose) ? Tx for your help !!|||These are really to seperate issues.








1.The sale of merchandise should be reported in $ equalivents at the time of sale.





2. If the euros are exchanged later at a different rate, gain or loss should be calculated,then reported a a gain or loss





to ignore the gain or loss could cause issues later if questioned in an audit situation.|||The simplest approach is to ignore profit and loss on the currency exchange and simply account for all sales in the dollars you receive. For example, you receive 100 Euros from one customer and convert to $60, you report the sales revenue as $60. When you receive another 100 Euros and exchange for $58, you report that sales revenue as $58.





The important thing is to keep all documents in good order in case you get audited.





If you are hedging your foreign exchange, the accounting procedures for reporting gains and losses on currency exchange are complicated. In that case you should hire a CPA.