GST Account needs to be split
Please allow the function to split the linked accounts for GST Collected on Sales/Income and GST Paid on Purchases/Expenses. It's extremely frustrating to have them all lumped into the one account and makes year end reconciling much more time consuming and difficult. Needless to say, it makes it a lot harder to do year end adjustments correctly.
Hi Jodie, the single GST account in Xero is designed to calculate and create the org's Business Activity Statement based on the accounting method selected in the org's settings. I want to be open that we don't have plans to change this.
However, you could use custom tax rates to separate different rates within the GST account.
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Nick Navarra commented
What Xero should do is have a "primary jurisdiction" (e.g. Australia so that the system can continue working as is in relation to preparing BAS's) with tax codes liked to this "primary jurisdiction", but allow additional tax codes to be created that are not linked to the "primary jurisdiction" but can be linked to specific accounts in the chart of accounts.
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Nick Navarra commented
Kelly. This is insane and Xero should be looking at this if it wants to say it is relevant in the modern commerce world. There are so many reasons why different tax codes need their individual account including being able to keep track of GST/VAT reporting in different countries in which a business sells (and the suggestion that a company should have more than 1 Xero account to accomodate this is not a reasonable solution), dealing with different types of taxes in some countries which require separation in the accounts, agents need a separate account where they are actually not responsible for remitting GST to the ATO (but rather pass it on). I am sure there are many other reasons but reall to say that Xero isnt even considering this is quite arrogant on Xero's behalf. There seems to be a lot of people asking for this so it would be greatly appreciated if this could be given further consideration.