Symptom: Sales and Purchase Tax Control Accounts are missing. VAT Balances 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 system account. All VAT postings are made in the one account.
Explanation: There’s no requirement to operate multiple VAT system accounts such as Sales and Purchase Tax Control Accounts as well as a VAT 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 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 system accounts equals the balance in online accounting software).