XBert Type: Standard
Accounting Software: Xero, MYOB, QuickBooks Online
Country Restriction: the United Kingdom only
Risk Type: Compliance Risk
Business Function: Purchases
Overview
This XBert checks for bills entered against a supplier whose UK company has been dissolved or cancelled on the Companies House register. It helps you avoid recording and paying purchases against a business that no longer legally exists, which keeps your records accurate and reduces your compliance and fraud risk.
What it does
It looks at the bills in your accounting software and identifies the company or VAT number recorded for each supplier. It then matches that supplier to the official Companies House register and compares the company's current status, and the date it ceased, against the date on the bill. If a bill is dated on or after the supplier's company was dissolved, XBert flags it so you can review it before you pay.
How it works
XBert only flags a bill when all of the following are true:
The bill is still in a raised state, meaning it is in draft, submitted (awaiting approval) or authorised. Voided and deleted bills are always ignored.
XBert can match the supplier to a record on Companies House. It uses the company or VAT number entered on the supplier's contact record, and where none is recorded there, it uses the most recent number it has seen for that supplier.
The matched company is no longer shown as active or open on Companies House, for example it has been dissolved, struck off or otherwise cancelled.
The bill is dated on or after the date the company ceased. A bill raised while the supplier was still trading will not be flagged.
XBert is also careful to avoid false alarms. If the match is only to the closed UK branch listing of an overseas company, XBert does not flag the bill, because the overseas business itself is still trading. This prevents bills from large international suppliers being flagged simply because an old UK branch registration was closed. XBert also only acts on a confirmed company match, not a loose name-only guess.
Example/Use Case
Priya runs a small catering company and orders a new commercial oven from a supplier for £6,000. She enters the bill ready for payment. What she does not realise is that the supplier's company was dissolved on Companies House two weeks earlier, and the bill is dated after that. XBert matches the supplier to the register, sees that the company is no longer active, and flags the bill.
Priya reviews the alert before paying, searches for the company on Companies House, and confirms the business has been struck off. She also notices the bank details on the invoice have changed. She contacts the supplier for an explanation and current details, and holds the payment until she is confident the transaction is genuine. Reviewing the alert in time saved her from paying £6,000 to a business that no longer existed.
Accounting software
This XBert runs on UK-compatible accounting software, including Xero, MYOB and QuickBooks Online.
Which countries it supports
United Kingdom only.
Processes
This alert falls under the Purchases (Accounts Payable) area and helps you avoid the compliance and fraud risk of paying a supplier that has been dissolved or cancelled. To resolve it:
Open the bill and the supplier's contact record in your accounting software.
Check that the company or VAT number is entered correctly and against the right supplier.
Search for the company on the Companies House register to confirm whether the business is dissolved or still active.
If the number is wrong or out of date, contact the supplier for their correct, current details (they may now trade under a different company) and update the contact record.
If the supplier really has been dissolved, hold the payment and decide whether the bill is still valid. Do not pay it until you have confirmed who you are really paying.
Update or remove the bill if it is no longer valid, then mark the XBert as resolved.
Paying a bill from a cancelled or dissolved company can leave you without a valid invoice, unable to reclaim VAT, and exposed to fraud or HMRC queries. A quick check now protects both your cash and your records.