XBert Type: Standard
Accounting Software: Xero, MYOB, QuickBooks
Country Restriction: GB only
Risk Type: Tax Risk
Business Function: Sales
Overview
This XBert identifies contacts with significant VAT activity but lacking a recorded VAT number in your accounting software. Ensuring that all contacts with substantial VAT transactions have valid VAT numbers is crucial for accurate tax reporting and compliance.
What It Does
The XBert scans your accounting data to detect contacts who:
Have significant VAT-related transactions (either as expenses or income).
Lack a recorded VAT number in their contact details.
By highlighting these contacts, XBert helps you rectify potential oversights that could lead to compliance issues or missed tax credits.
How It Works
XBert analyzes your financial transactions to:
Identify contacts with cash income and/or expense journals that include VAT.
Calculate the total VAT activity per contact.
Highlight the top 20% of contacts based on VAT activity.
From these, flag up to three contacts with at least £30 in total VAT activity and no recorded VAT number.
This focused approach ensures that you address the most critical discrepancies without being overwhelmed.
Example/Use Case
Maxine operates a mechanic shop and regularly purchases tyres from Auto Express. Over the year, she accumulates significant VAT expenses from these transactions. However, she overlooked entering Auto Express's VAT number into her accounting system. XBert detects this discrepancy, alerting Maxine to update the contact details. By doing so, she ensures accurate VAT reporting and avoids potential issues with tax authorities.
Accounting Software
This XBert is compatible with UK-based accounting software, including:
Xero
MYOB
QuickBooks Online
Supported Countries
United Kingdom
Processes
This alert falls under the 'Bookkeeping' category, specifically addressing sales/accounts receivable (AR) processes.
To resolve this issue:
Select "RESOLVE NOW" within XBert to update the VAT number on the contact's record in your accounting software.
Request the correct VAT number from your contact if it's not readily available.
Verify the VAT number using the Check a UK VAT Number service.
Update the contact details to include the verified VAT number, ensuring accurate future transactions.