XBert Type: Standard
Accounting Software: Xero, MYOB, QuickBooks
Country Restriction: CA only
Risk Type: Tax Risk
Business Function: Sales
Overview
The "Invoice Raised with an Inactive Customer" XBert checks whether any unpaid invoices have been issued to a customer whose business number has been marked as inactive on Canada’s Business Registries. This helps ensure your accounts receivable records are accurate and alerts you to the risk of unpaid income.
What it does
This XBert scans for unpaid invoices created after the customer was marked as deregistered or cancelled on Canada’s Business Registries. If any are found, it alerts you to review the invoice and the customer’s business number to avoid pursuing payments from businesses that are no longer operating.
How it works
XBert monitors invoices raised for Canadian businesses and cross-checks the associated business number against the official registry. If the customer has been marked as inactive or cancelled, and you’ve issued an invoice after that date, XBert flags it for your review.
Example / Use Case
Steve runs a newsagency and issues an invoice for $285 to Dave's Plumbing for office supplies. A few weeks later, Dave’s Plumbing is dissolved, and Steve hasn’t received payment. Because the invoice was raised after the business had been deregistered, Steve risks not being paid.
XBert picks up on this and alerts Steve, prompting him to contact the customer directly. He’s able to settle the amount before the business closes its accounts, avoiding a write-off.
Accounting software
Xero, MYOB, QuickBooks
Which countries it supports
Canada only.
Processes
This alert falls under the Sales (Accounts Receivable) process and highlights risks relating to billing inactive businesses.
To resolve this issue:
Select RESOLVE NOW in XBert to open the customer’s record in your accounting software
Review the business number entered against the customer
Confirm their business status using Canada’s Business Registries
If the business number is incorrect or outdated, request updated information from your customer and update your records
If the invoice was sent after the business became inactive, consider whether it should be voided or reissued under a different entity (if applicable)
Avoid issuing invoices to deregistered or inactive customers. Always confirm the customer’s business number before sending an invoice to ensure you’re trading with an active, legitimate business.