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Unpaid Income With A Cancelled Business - AU

Marsha Galicia avatar
Written by Marsha Galicia
Updated yesterday

XBert Type: Standard
Accounting Software: Xero, MYOB, QuickBooks
Country Restriction: AU only
Risk Type: Tax Risk
Business Function: Sales

Overview

The "Unpaid Income With A Cancelled Business" XBert identifies open invoices that are yet to be paid from a customer whose ABN is cancelled or cannot be matched on the Australian Business Register (ABR). This alert highlights the risk of unrecoverable income due to trading with businesses that are no longer registered.

What it does

This XBert scans your unpaid invoices and flags those where:

  • The contact has an ABN entered

  • The ABN has been matched to a status of "cancelled" or is not found on the ABR

  • The invoice has not been marked as Paid, Deleted, Voided, Draft or Submitted

  • The invoice total is greater than $0.00

How it works

XBert automatically matches the ABNs of contacts listed on unpaid invoices to the ABR. If the ABN is found to be cancelled or unmatched, and money is still owed by the customer, the alert is triggered.

This XBert is only applicable for Australian tenants and is part of your credit risk monitoring.

Example/Use Case

Steve, who owns a local newsagency, sends an invoice for $85 to Dave’s Plumbing for stationery supplies. A few weeks pass and Steve notices the invoice remains unpaid. XBert alerts him that Dave’s Plumbing’s ABN has been cancelled. Steve contacts Dave and manages to recover the payment just before Dave’s business is closed down entirely. If XBert hadn't raised the alert, this invoice may have gone unpaid.

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 - Sales (AR)' category and serves as a preventative measure for reducing bad debt. To resolve this alert:

  • Confirm the customer’s ABN via the ABN Lookup website

  • If incorrect or cancelled, reach out to your customer for clarification

  • If the ABN is valid, update the contact in your accounting system

  • Do not issue new invoices to businesses with cancelled or invalid ABNs

  • Consider re-issuing existing unpaid invoices with updated customer details where appropriate

  • Ensure all records reflect accurate registration information to maintain compliance and reduce risk

This alert helps you stay ahead of potential credit issues and ensure timely collections.

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