Troubleshooting – General – VAT/tax Accounts / Balances

Symptom: Sales and Purchase Tax Control Accounts are missing. VAT or tax alances don’t agree. Trial Balance totals aren’t the same in the old and new software.

Cause: Both Xero and Quickbooks Online operate a single VAT / tax system account. All VAT / tax postings are made in the one account.

Explanation: There’s no requirement to operate multiple VAT / tax system accounts such as Sales and Purchase Tax Control Accounts as well as a VAT / tax liability account.

Xero and Quickbooks Online combine all the transactions into one account to make things easier.

Check: Calculate the net balance of the Sales and Purchase Tax Control Accounts and the VAT / tax liability account. This net figure should be the same as the one you see in Xero or Quickbooks Online.

Fix: None required (assuming the net balance of VAT / tax system accounts equals the balance in online accounting software).