XBert Type: Standard
Accounting Software: Xero, MYOB, QuickBooks
Country Restriction: GB only
Risk Type: Tax Risk
Business Function: Purchases
Overview
This XBert identifies payments made to suppliers whose companies have been dissolved or canceled according to the UK Companies House register. It helps ensure that your business transactions are with active and registered entities, maintaining compliance and reducing financial risks.
What it does
This XBert scans your accounting records to detect any payments made to suppliers with a Company Registration Number (CRN) that matches a dissolved or canceled entity in the Companies House register. It alerts you to these transactions, highlighting potential issues with supplier legitimacy.
How it works
This XBert analyzes authorized supplier payments and bank transactions created after the supplier's dissolution date. It cross-references the CRN provided in your accounting software with the Companies House database. If a match is found indicating the supplier is no longer active, and payments have been made post-dissolution, XBert generates an alert detailing the total amount paid to the canceled supplier.
Example/Use Case
Imagine your business, ABC Ltd., made a payment of £5,000 to XYZ Supplies, unaware that XYZ Supplies was dissolved two months prior. XBert detects that the CRN associated with XYZ Supplies is marked as canceled in the Companies House register and that a payment was made after this cancellation date. This alert allows you to investigate the legitimacy of the transaction and take necessary corrective actions.
Accounting software
This XBert is compatible with UK accounting software platforms, including:
Xero
MYOB
QuickBooks Online
Which countries it supports
United Kingdom
Processes
This alert falls under the 'Purchases (Accounts Payable)' process, focusing on ensuring that payments are made to legitimate and active suppliers.
To resolve:
Verify Supplier Details: Check the supplier's CRN against the Companies House register to confirm their current status.
Update Records: If the supplier is active, ensure that their CRN is correctly entered in your accounting software.
Communicate with Supplier: If discrepancies are found, contact the supplier to obtain accurate information.
Amend Transactions: If payments were made to a dissolved entity, consult with your financial advisor or accountant to determine the appropriate course of action, which may include reversing the transaction or making necessary adjustments in your records.
Prevent Future Issues: Implement a process to regularly verify supplier statuses to avoid similar issues moving forward.
By following these steps, you can ensure that your business maintains accurate records and complies with regulatory requirements, thereby mitigating potential financial and legal risks associated with transactions involving canceled suppliers.
For more information, refer to the Companies House Register to verify supplier statuses.