XBert Type: Standard
Accounting Software: Xero, MYOB, QuickBooks
Country Restriction: NZ only
Risk Type: Tax Risk
Business Function: Purchases
Overview
The "Expenses with a removed business" XBert identifies when expenses have been allocated to a contact that is no longer a registered business, according to the NZBN Register. This ensures the accuracy of business registration data when claiming expenses and tax credits.
What it does
XBert scans contact records for suppliers with an NZ Company Registration Number (CRN) and matches these to the NZBN register. If the CRN has a "removed" status and there are recent expenses recorded against that contact, XBert raises an alert. This indicates a potential issue with the legitimacy or status of the supplier used in the expense record.
How it works
XBert looks for:
Supplier contact records with a matched CRN on the NZBN register
Suppliers marked as “removed” on the NZBN
Expense transactions recorded against these suppliers
If the supplier has been removed from the register and expenses are still being claimed with them, XBert will trigger a risk alert. This helps prevent errors in reporting and potential exposure to compliance issues.
Example/Use Case
Bill runs a pizza shop and purchases a commercial oven from a supplier for $6,000. Unbeknownst to him, this supplier has had their registration removed from the NZBN. When the IRD audits his books, Bill is required to pay $2,700 in withholding tax because the business was not registered at the time of the transaction. If Bill had known, he could have asked the supplier to confirm their status or bought from another registered business instead.
Accounting software
Xero, MYOB, QuickBooks
Which countries it supports
New Zealand only.
Processes
This XBert falls under the Cleanup category and supports the Purchases (Accounts Payable) bookkeeping process.
To resolve this issue:
Check that your contact has provided the correct Company Registration Number.
Look up their current business status on the NZBN Register.
If the registration has changed, update the supplier record in your accounting software.
If the supplier is no longer a registered business, evaluate whether you should proceed with them or adjust records accordingly.