XBert Type: Standard
Accounting Software: Xero, MYOB, QuickBooks
Country Restriction: AU only
Risk Type: Tax Risk
Business Function: Contacts
Overview
The "Incorrect ABN for business" XBert detects when a contact in your accounting system has an Australian Business Number (ABN) recorded that does not meet the official ABN format requirements. This alert helps prevent the risks of transacting with unregistered or incorrectly identified businesses.
What it does
This XBert reviews all contacts in your system that have an ABN entered and checks the format and validity of those ABNs using the rules defined by the Australian Business Register (ABR). If an ABN fails this validation check, the alert is triggered so you can review and update the contact record.
Note: This alert does not check for invalid ABNs found on bill attachments. That is covered by a different XBert.
How it works
XBert identifies contacts that:
Have an ABN recorded in your accounting system
Are linked to income or expense transactions
Have an ABN that fails the ABR format validation
These could be cases where the ABN was mistyped, partially entered, or includes check digits that do not align with the ABN verification algorithm. XBert flags these so you can verify the business identity and avoid issues with tax reporting or compliance.
Example/Use Case
Marie runs a bakery and purchases a new oven for $5,000 from a supplier. A few months later, the oven breaks down. When she tries to contact the supplier, the phone number is disconnected. It turns out the ABN provided was invalid and the supplier wasn’t a registered business. Marie now has to spend an extra $2,000 to fix the oven and can’t claim GST back on the original purchase. If she had checked the ABN earlier, she could have avoided the risk entirely.
Accounting software
All major Australian-compatible accounting software (e.g., Xero, MYOB, QuickBooks Online).
Which countries it supports
Australia only.
Processes
This alert falls under the ‘Bookkeeping Services’ category and helps ensure supplier and customer records are accurate and compliant. To resolve this issue:
Go to the contact record in your accounting software.
Verify the ABN by using the ABN Lookup website.
If the ABN is incorrect, ask the contact to confirm their current registered ABN.
Once verified, update the ABN in your accounting system.
Avoid purchasing from unregistered businesses unless there is a valid reason and you understand the risks.