GST Reconciliation Post Conversion

GST Reconciliation Post Conversion

Publish your BAS for the period before your conversion date

Run and publish the older BAS, or finalise the new Activity Statement for all periods prior to your conversion date that contain transactions with GST.
You’ll need to do this in Xero so your GST Reconciliation report is correct, even if they may not match the BAS you lodged with the ATO. For example, if your conversion date is July 2016, and you had unpaid invoices or bills dating back to February 2016, you'd publish activity statements for the quarters 1 January to 31 March 2016 and 1 April to 30 June 2016.
You can refer to your previous accounting system for full details of your BAS for these periods.

Run the GST Reconciliation report to check conversion balances

Run the GST Reconciliation report for a date range that captures all the GST entered prior to your conversion date. Staying with the previous example, this means running the report from 1 January 2016 to 30 June 2016.

Comparative balances can also affect the GST account. If you entered comparative balances for the 2015 year, you'd run the report from 1 April 2015 instead.

If you use the new activity statement, you'll need to manually enter the figures in the Filed column. Use the amounts from 1A and 1B of your finalised activity statements.

Review the GST Reconciliation report and confirm the GST Account Summary balance and the GST Account Balance match. Both balances should equal your conversion balance for GST. Any Unfiled GST represents a rounding balance.

If the balances don't match in your report, review your conversion balances, and invoices and bills outstanding on your conversion date. Re-enter them if necessary.

When you've confirmed your GST Reconciliation report is correct, you might want to publish it.

Complete the BAS after your first quarter in Xero
Run and publish the older BAS, or finalise the new activity statement, for the first period after your conversion date.

Run your next GST Reconciliation report

Run the GST Reconciliation report using the same From date as before, but this time extend the To date to the end of the first GST period you’ve completed in Xero.

Review the following details in your report:

  • Check the Filed amounts for GST Collected and GST Paid agree with your BAS. Manually update the Filed column if you use the new activity statement.

  • Check the transactions listed in GST Account Transactions are correct.

  • Check the GST Owing section is correct and the GST Owing Closing Balance matches the GST to pay or refund on your BAS. You'll need to allow for rounding and any previous liabilities not yet paid.

  • Check the GST Account Summary balance and the GST Account Balance match. Any unfiled GST represents a rounding balance.

When you've confirmed your GST Reconciliation report is correct, you can publish it.

After you publish each subsequent BAS, run your GST Reconciliation report. Keep the same From date and change the To date to the end date of your last published BAS.

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