Billing overseas clients in US dollars

Why US dollars are the norm

Jamaican BPO centres, software teams, creative agencies and consultants often serve clients in North America and Europe who budget in US dollars. Quoting in the client's currency removes uncertainty on their side and often makes the sale easier.

The consequence is that the invoice currency is not the currency in which you file taxes, pay wages or settle most local bills. Everything between invoice and ledger needs a documented conversion, otherwise the books drift away from the bank.

A Kingston customer-service centre invoices a US telecom client monthly in dollars for agent hours. Its finance lead records the invoice at the rate agreed with the accountant, matches the wire when it arrives and posts the exchange difference separately. The client sees a clean dollar invoice; the company sees consistent Jamaican dollar books.

Invoice promptly and consistently. Send invoices on the same day each month, to the same contact, with the same layout, and confirm receipt. Overseas payment cycles are often fixed, such as a payment run on a particular day, so an invoice that misses the cut-off can wait an extra month.

What to put in the contract

State the currency, the rate card or fixed fee, the invoicing frequency, the payment deadline, the payment method and who bears bank charges. Decide what happens to late invoices and to disputed hours. Add a clause on the governing law and how disagreements are resolved, which an attorney-at-law should draft for you.

Agree the invoice format with the client's finance team, including the purchase order number, billing entity name and submission address. Many overseas accounts-payable teams reject invoices that lack these details without telling you why.

Hourly or per-seat billing needs evidence. Keep timesheets, activity reports or usage logs for each invoice so a dispute about hours can be settled quickly. Send the supporting report together with the invoice if the contract requires it.

Recording exchange rates

Pick one rate source and apply it consistently: for example the rate on the bank advice when funds are received, or a published daily rate on the invoice date. Record the USD amount, the rate and the JMD value on each entry. Differences between the invoice-date and payment-date values are exchange gains or losses.

At month-end, revalue open USD receivables as your accountant instructs. This sounds technical, but with a simple list of unpaid USD invoices and the closing rate it is a ten-minute task.

Overseas clients often need documents from you before they can pay: a completed vendor form, your bank details on company letterhead and a tax form or certificate if the client requests one. Ask for the list in advance and prepare a standard pack, so the first payment is not delayed by paperwork.

Getting paid

Bank wires, card platforms and payment services each have different fees, speeds and limits. Compare the total cost on a typical invoice, including intermediary bank charges, which may reduce the amount you receive. Provide your bank details exactly, including any intermediary or reference requirements.

Receive the money into a USD account where possible, and decide when you convert. Keep a note of the purpose and the invoice number on each receipt, because banks may ask questions about large foreign inflows.

Consider currency risk. If your costs are in Jamaican dollars and your income is in US dollars, a fall in the exchange rate helps you and a rise hurts. Discuss with your bank or accountant whether to hold balances in dollars, convert regularly or fix prices for the contract period.

Tax and records

Whether your services qualify for any zero rating under GCT, and how income is taxed, depends on the nature of your business and any incentives you hold. Do not assume; ask Tax Administration Jamaica or your accountant and keep the written answer.

4invoices issues PDF invoices in the currency you agree and archives them. 4softerp records the ledger entries, and 4mycontracts stores and e-signs service agreements. The modules do not set the JMD conversion automatically or file anything with Jamaican authorities.

Review contract renewals with the currency in mind. A rate card agreed years ago may no longer cover rising local costs, so build a yearly price review into the agreement.

Tax and compliance questions to settle early

Ask Tax Administration Jamaica or your accountant how income from overseas clients is taxed, whether your services can be zero-rated for GCT and what evidence is needed. The answer can depend on the kind of service and where it is used, so avoid relying on assumptions or on what another company does.

Check whether you hold, or are eligible for, any incentive or special status that affects the tax treatment of your export income. Such status usually comes with conditions and reporting duties, and the books must show the qualifying income clearly.

Foreign clients may withhold tax from payments to you under their own rules, or ask you for forms that confirm your tax residence. Keep any withholding certificate, because it may be creditable against your Jamaican tax. Record the gross amount, the withholding and the net receipt in the ledger so the figures reconcile.

Finally, schedule a regular conversation with your accountant about currency. Review the average rate you achieved, the fees paid, the exchange gains or losses recorded and the balance of foreign currency held. A short quarterly check often reveals easy savings, such as consolidating payments, negotiating a better bank rate or changing the date on which you convert.

Yes, parties are free to agree the invoice currency, and many exporters of services do. Your accounts and tax filings are normally kept in Jamaican dollars, so record the exchange rate used for each conversion and agree the method with your accountant.

Use one documented source consistently, such as the bank's rate on the day funds are received or a published rate on the invoice date. Your accountant will tell you which method suits your reporting. What matters is that every entry shows the USD amount, the rate and the JMD value.

Agree who bears charges in the contract, ask the client to pay in full with fees borne by the sender where possible, and compare the net amount received across payment routes. Record any shortfall as a bank charge so the invoice can still be matched.

Yes. 4mycontracts lets you draft service agreements, route them for approval and collect electronic signatures, and keeps them in an archive. It does not provide legal advice, so have an attorney-at-law review terms such as governing law and liability.

Information page

This page is informational. Confirm requirements with the competent authority; 4b2b tools cover general invoicing and records only.