XBert Type: Standard
Accounting Software: Xero, MYOB, QuickBooks Online
Country Restriction: Australia only
Risk Type: Tax Risk
Business Function: Purchases
Overview
This XBert checks for unpaid bills you have raised against a supplier whose Australian Business Number (ABN) has been cancelled on the Australian Business Register (ABR). Paying a supplier with a cancelled ABN can put your GST claim at risk and may mean you have to withhold tax, so it is worth catching before you pay.
What it does
It looks at the suppliers on your unpaid bills and matches each one to the Australian Business Register by their ABN. When a supplier's ABN shows as cancelled on the register, and the bill is still open and unpaid, XBert flags the bill so you can review it before you process the payment.
How it works
XBert flags a bill that is still open in your accounting software, meaning it is in draft, submitted for approval, or approved, but not yet paid, voided or deleted. It only raises the alert when all of the following are true:
XBert has confidently matched the supplier to a business on the ABR by their ABN, not just by name.
That ABN is currently recorded as cancelled on the register.
The ABN was already cancelled on or before the date of the bill.
The bill was raised within the last 12 months.
If the supplier was still active when the bill was dated, or XBert could not confidently match the supplier to a cancelled ABN, the bill is left alone so you are not alerted unnecessarily.
Example/Use Case
Bill owns a pizza shop and recently raised a bill for a commercial oven from a supplier for $6,000. The bill is approved but not yet paid. A few days later, XBert alerts him that the supplier's ABN was already cancelled before the bill date. Bill looks into it and finds the supplier had deregistered their business. Because the ABN is cancelled, he may not be able to claim the GST on the purchase, and he could be required to withhold 47% of the payment. Spotting it early, Bill asks the supplier for their correct, current ABN, updates the contact details, and fixes the GST before paying, avoiding the tax exposure.
Accounting software
This XBert runs on Australian-compatible accounting software, including Xero, MYOB and QuickBooks Online.
Which countries it supports
Australia only. It uses ABN and ABR data that is specific to Australia.
Processes
This alert falls under the Purchases (accounts payable) area and helps you avoid tax risk from dealing with a cancelled supplier. To resolve a flagged bill:
Use the free ABN Lookup service on the ABR website to confirm the supplier's current registration status.
If the ABN is wrong or out of date, contact the supplier and ask for their correct, active ABN.
Update the supplier's contact record and ABN in your accounting software so future bills are correct.
Review the bill and amend the GST if the supplier is no longer registered for GST.
Avoid paying a supplier with a cancelled ABN unless you have a clear reason, and be mindful of any tax you may need to withhold.
Once the bill and supplier details have been corrected, mark the XBert as resolved.