Complete your GST Reconciliation report with a conversion balance

Learn how to complete your GST Reconciliation when your organisation has a GST conversion balance. We'll use an example to show you how it works.

Before you start, learn how Xero builds the GST Reconciliation report, and where the figures come from.

If you're starting a new business or have just registered for GST, follow the process to complete your GST Reconciliation report after you start with GST.

Example scenario

  • Your organisation's conversion date is 1 July 2015.
  • You use the accruals basis to account for GST.

    If you use the cash basis for GST, review what Xero includes in the conversion balance for GST and make sure you've entered it correctly.

  • Your organisation lodges a BAS every quarter, and your last BAS before you converted to Xero was for the quarter ended 30 June 2015. You completed this BAS outside Xero.
  • You've entered your conversion balances into Xero, including the details of invoices and bills outstanding at your conversion date. Your oldest outstanding invoice or bill is dated 20 February 2015.
  • Your conversion balance for GST is 6695.00 credit (you owe GST to the ATO). This balance is made up of:

    • GST on outstanding invoices $1111.49 (credit)
    • GST on outstanding bills $903.96 (debit)
    • Other GST outstanding $6487.47 (credit)
  • You've entered comparative balances into Xero for the year ended 30 June 2014.

Follow these 4 steps to understand how the reconciliation works.

  1. Publish your BAS for the period before your conversion date
  2. Run the GST Reconciliation report to check conversion balances
  3. Complete the BAS after your first quarter in Xero
  4. Run your second GST Reconciliation report