Overview: In practice, mis-coded transactions are easy to miss — especially across large transaction volumes or when multiple staff are coding in Xero throughout the period.
The GST Transactions Review analyses transactions for a selected period and surfaces any that appear to be incorrectly coded. It checks for things like:
Transactions coded to a tax rate that doesn't match the account type
Suppliers that are known to be GST-free (such as ASIC fees or overseas providers) that have been coded with GST
Transactions coded differently from every other transaction in the same account
For each identified issue, it shows you what's currently coded, what it's suggesting instead, and why. You review each one, make any changes in Xero, record your decision, and save the results as a workpaper.
Please refer to the Glossary for definitions of key terms used in this article.
Before you start
If your binder is connected to Xero, the tool will automatically pull all the transactions imported into the binder from Xero.
If your binder isn't connected to Xero, you can still use the tool by uploading a CSV export of your transactions.
How to run a GST Transactions Review
Step 1 — Configure and run
Open the GST Transactions Review tool from within your binder. Before running, check the following:
Source — if your binder is connected to Xero, this is pre-populated with your connected organisation and the number of transactions available for the period.
Period — defaults to your binder period. Adjust if needed.
Accounting basis — defaults to your binder's setting (Cash or Accruals).
When you're ready, click Run AI review.
Step 2 — Review identified issues
When the review completes, you'll land on the Identified Issues tab.
Each row in the table is a transaction the AI has flagged. For each one you can see:
The account the transaction is coded to in Xero
The gross and GST amounts
The current tax rate and the suggested correction
A rationale — click the ⓘ icon to see the full explanation
A confidence level — green dot means high confidence, red dot means lower confidence. Always read the rationale regardless.
Use the filter pills to focus your work:
Action Required — transactions you haven't reviewed yet
Addressed — transactions you've already decided on
All — everything the AI flagged
Reviewing transactions the AI didn't flag
Switch to the All Transactions tab to see every transaction in the period, including those the AI didn't identify as an issue. If you spot something that needs correcting, click Flag on that row to add it to your Identified Issues list, where you can review it and record a decision in the same way.
Step 3 — Decide on each issue
For each identified issue, click View in Xero to open the transaction directly in Xero and check the coding. Then use the Decision dropdown to record what you've decided:
Resolved — you've corrected the issue. Select the reason:
Fixed in Xero
Fixed in binder journal
Other
Not an issue — you've reviewed the transaction and disagree with the suggestion, or the current coding is intentional. Select the reason:
Correct as coded
Supplier is GST-free
Outside scope of BAS
Other
Your decisions are saved as you go. If you close the tool and come back, everything will be where you left it.
Step 4 — Save as Workpaper
Once you're satisfied with your review, click Save as Workpaper. This creates a workpaper record in your binder, capturing a snapshot of the review at that point in time, including:
All identified issues and suggested corrections
Your decision and reason for each issue
You can save a workpaper at any stage — you don't need to address every issue first.
Using CSV upload
If your binder isn't connected to Xero, click Use CSV upload instead on the setup screen.
Your file needs to include these fields: date, account name, account code, account type, description, reference, amount, and current tax rate. Column names don't need to match exactly — you'll map them in the next step.
After uploading, review the column mapping, click Confirm column mapping, select your accounting basis, and click Run AI review.
Re-running the review
You can re-run the review at any time — for example after making corrections in Xero, or to run a final check before lodgement. Click Re-run from within the tool.
Decisions you've already recorded carry forward automatically for any transactions that haven't changed.
Each time you save a workpaper, it creates a new record. Previous workpapers are not overwritten.
Frequently asked questions
Does the tool change anything in Xero?
No. The tool is read-only. It analyses your data and surfaces issues for you to review. Any corrections are made by you directly in Xero or via a binder journal.
The AI flagged a transaction I know is coded correctly. What should I do?
Select No action required and choose the reason that best applies — most commonly "Correct as coded." This records that you've reviewed the flag and are satisfied with the current coding.
Can I use this tool for MYOB or QBO binders?
Yes, via CSV upload. Export your GST transaction data from MYOB or QBO and upload it using the CSV path.
Where does the workpaper appear?
Alongside the GST Transactions Review tool in your binder. It opens in Excel like any other workpaper.