XBert Type: Standard
Accounting Software: Xero, MYOB, QuickBooks
Country Restriction: ZA only
Risk Type: Tax Risk
Business Function: Purchases
Overview
This XBert identifies bills over R5,000 (excluding VAT) in [Month] that lack attachments. According to the South African Revenue Service (SARS), for a business to deduct input tax on expenses, a valid tax invoice is required. While attaching documents in accounting software isn't mandatory, doing so ensures easy access for audits and supports VAT claims.
What it does
XBert scans bills over R5,000 (excluding VAT) without attachments in the past 12 months. It flags these bills to prompt users to attach the necessary documentation, ensuring compliance with SARS requirements.
How it works
XBert analyzes bills in your accounting software, focusing on those over R5,000 without attachments. It checks for the presence of tax amounts and the absence of supporting documents, highlighting potential compliance issues.
Example/Use Case
John from John's Appliances purchased equipment worth R5,560 from ACME Suppliers 11 months ago. During a tax audit, his accountant requested the corresponding tax invoice. John couldn't locate it in his physical files and had to contact ACME for a duplicate. Had he attached the invoice to the bill in his accounting software, it would have been easily accessible.
Accounting software
This XBert is compatible with South African versions of Xero, MYOB, and QuickBooks.
Which countries it supports
South Africa only.
Processes
This alert falls under the 'Purchases (AP)' category and specifically addresses accuracy in bookkeeping for purchases/accounts payable.
To resolve this issue:
Select "RESOLVE NOW" within XBert to review the bill.
Attach the missing tax invoice to the bill in your accounting software.
Ensure future bills have the necessary documentation attached promptly.
By maintaining proper documentation, you support accurate VAT reporting and reduce the risk of compliance issues.