How can comparative balances be shown in financial reports?

The correct approach to show comparative balances in financial reports is through the manual entry of these figures in the Conversion balances screen. This method allows users to input the beginning balances for both the current year and the previous year directly. By doing so, businesses can display accurate comparative figures that reflect their financial performance over different periods, aiding in analysis and decision-making.

Other methods, such as importing full historical data, primarily focus on bringing in comprehensive data records rather than selecting specific comparative balances for reporting. Connecting bank feeds to Xero and using automated reconciliation features are useful tools for updating and reconciling ongoing transactions but do not offer a direct way to present comparative balances as required in a financial report.