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Unpaid income with a removed business

Marsha Galicia avatar
Written by Marsha Galicia
Updated today

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

Overview

This XBert identifies when you have outstanding invoices issued to customers that are no longer registered as active businesses on the NZBN Register. It helps you prevent follow-up with businesses that have been dissolved and avoid losses from uncollectible debts.

What it does

XBert scans customer contact records and unpaid invoices in your accounting software. It checks for active Business Numbers and matches them against the NZBN Register. If a customer's business number shows as “removed” and there are invoices still owing, XBert raises an alert.

How it works

For New Zealand tenants only, XBert does the following:

  • Identifies contacts that have a valid Business Number entered in Xero, MYOB or QuickBooks

  • Confirms the business number has a registration status of “removed” on the NZBN Register

  • Checks for unpaid invoices with non-zero balances linked to those contacts

  • Triggers an alert for each business with outstanding income

This alert helps you manage risk by drawing attention to income that may no longer be collectible.

Example/Use Case

Steve runs a newsagency. He sends an invoice for $85 to Dave’s Plumbing for stationery. A few weeks later, Dave’s Plumbing is deregistered. The invoice remains unpaid. Fortunately, XBert picks this up and alerts Steve. He quickly contacts Dave and settles the invoice before the business is closed completely. Without the alert, the income may have been lost.

Accounting software

This XBert works with:

  • Xero

  • MYOB

  • QuickBooks

Which countries it supports

New Zealand only.

Processes

This XBert falls under the Sales (Accounts Receivable) process and highlights potential compliance and financial risks related to uncollectible income.

To take action:

  • Review the contact record in your accounting software

  • Look up the business on the NZBN Register

  • Confirm if the customer is indeed removed or if the business number was entered incorrectly

  • If incorrect, update the contact details with a valid Business Number

  • If the business is no longer active, consider writing off the debt or following up with the business owner directly

Avoid issuing new invoices to deregistered businesses unless you are certain of their current trading status.

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