Xero Accountant, Xero Platinum PartnerWe share some expert tips and tricks for getting the most out of your Xero accounting software, including Xero bank rules.

1. Xero Bank Rules

Xero bank rules are a great way to automate reconciling transactions in Xero. Bank rules are best used for transactions that need splitting out, such as entertainment expenses which are 50% deductible and 50% non-deductible.

With bank rules, you can define the conditions for rules to suit specific bank transactions. Conditions can be based on exact phrases or key words in the transactions. You are also able to allocate the transaction total based on fixed or percentage amounts.

Xero bank rules can be created from Accounts > Bank Accounts > Create Rule or directly from the reconciliation page.

2. GST Audit Report

Xero’s GST audit report displays transactions that determine the amount of GST to pay or have refunded. This report can only be generated when you run the GST return.

The GST audit report splits out transactions and displays them in groups such as GST on expenses, GST on sales, and NO GST. Reviewing the GST audit report is a great way to check if you have claimed GST correctly on transactions. You can edit transactions directly from the GST audit report if any transactions need changing for GST or account codes.

3. Link Xero With IRD

Xero has the capability to link directly to the IRD and file your GST return through Xero. It does not send underlying transaction information to the IRD.

Before you can file GST returns, you’ll need to make sure you have:

  • Access to the GST return report;
  • Authorisation to file the GST return; and
  • Your own myIR login from the IRD.

Once you have checked the return and are ready to file, you’ll need to save the return as final. Click on ‘Save’ and then select ‘Save Final’. At the top of the return, a ‘File now with IRD’ button will appear. This will take you to the IRD’s myIR login page. Enter your myIR login and password. Xero then uploads your GST return to the IRD. The return receipt can be viewed in Xero once it has been successfully filed.