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Turnover per XERO and VAT declared Net Sales should be ideally Equal ,however often may not match and therefore need reconciling-which is important to understand the difference from both the YE accounts and HMRC point of view .

There should be a report in XERO which can facilitate this reconciliation rather than use spreadsheets -which is time consuming when the information is already existing in XERO

One of difference arising is -"The Date" invoice created and approved -are different and will report in different periods of the VAT return and Xero Sales Nominal Account

Example -Invoice created and left as Draft -dated 26/4/23 (note 1)
Approved on 20/9/23 (Note 2)

Note 1 -The Nominal Account will show this sale dated 26/4/23 ie Qtr say April -June 23
Note 2 -The VAT entry as output will be declared in Qtr July -Sept 23

This calculation gets complicated with lots of such entries in the year and suggest a report on sales within Xero to be able to pick up both Created and approved dates for each sales invoice and an option in the current Nominal codes transactions report.

so overall annual turnover per the year will be equal in this simple example but not when within each Qtr