• 877-780-4848
Avalara Tax compliance done right
  • About
  • How it works
  • Plans and pricing
  • Tools and resources
Menu
877-780-4848
Call
Menu
  • 877-780-4848
About
How it works
Plans and pricing
Tools and resources

Table of Contents

1. Choosing a Tax Basis
2. Sales Tax Lookup
3. Connect to TrustFile
4. Accrual Basis and Cash Basis
5. Xero and Avalara TrustFile

Guide to Managing Sales Tax in Xero

Chapter 5: Accrual Basis and Cash Basis

Reconciling data upon a switch from ‘Accruals’ to ‘Cash’ basis or vice versa

If you change the accounting basis used for Sales Tax, you may have to make a manual reconciliation and adjustment. For example, if you have been filing sales tax returns on a cash basis in the past, and decide to move to an accrual basis method, some invoices could be reported twice. Since TrustFile includes both Paid and Authorized invoices, you may have invoices that transition from Authorized to paid from the previous period that would be double remitted in TrustFile in the new period.

Reconciliation can be made by manually creating a negative transaction in TrustFile to remove a duplicate transaction on the form. To make a manual adjustment, tap ‘Orders’ and click ‘Add Sales Tax Data’. Enter a manual transaction that cancels out the original, using the same address and amounts.

Alternatively, you can make an aggregate override on the form itself if you know the amount to be credited.

  • Resources
  • Sales Tax Blog
  • Sales Tax Guides
  • Sales Tax Forms
  • Sales Tax Glossary
  •  
  • Research
  • White Papers
  • Videos
  • Events
  •  
  • TrustFile
  • Integrations
  • Pricing
  • Contact Us
  • Let's Connect:
  • Sales (US): 8777804848
  • Copyright 2019 Avalara Inc. All rights reserved.
  • Site Terms

How can we help?

Our automation specialists are here to answer any questions you have, click the button below to start a chat.