XBert Type: Standard
Accounting Software: Xero, MYOB, QuickBooks
Country Restriction: CA only
Risk Type: Tax Risk
Business Function: Purchases
Overview
The "Expenses with a Cancelled Business" XBert checks your supplier records to identify any businesses that are no longer registered according to Canada’s official business registries. This ensures you’re not transacting with inactive or deregistered suppliers, which could result in non-compliance with Canada Revenue Agency (CRA) rules and financial penalties.
What it does
XBert scans the Business Numbers recorded against supplier contact records in your accounting software. If a Business Number is cancelled or missing from Canada’s Business Registries and there are expenses recorded for that contact, XBert raises an alert.
How it works
For Canadian tenants, XBert will trigger this alert when:
A supplier contact has a Business Number entered in your accounting software
That number is matched to a deregistered or non-existent business on Canada’s official registries
There are expense journal entries recorded for the supplier
This helps you avoid claiming GST/HST on transactions with businesses that are not properly registered.
Example / Use Case
Bill owns a pizza shop in Toronto. He recently purchased a commercial oven for $6,000 from a supplier he’s used for years. However, that supplier’s Business Number was deregistered months ago.
Later, during a CRA audit, Bill is informed that the expense is non-deductible because the supplier is no longer an active entity. Bill is required to repay $2,700 in GST previously claimed. If XBert had been enabled, Bill would have been warned about the issue ahead of time—allowing him to verify the supplier or choose an alternative.
Accounting software
Xero, MYOB, QuickBooks
Which countries it supports
Canada only
Processes
This XBert alert falls under Purchases & Payables (AP) and is part of the broader bookkeeping and tax compliance process.
To resolve this alert:
Select RESOLVE NOW to open the contact record in your accounting software.
Check the supplier’s Business Number on Canada’s Business Registries.
If the Business Number is incorrect or deregistered, contact your supplier to confirm and request updated details.
Once verified, update the contact record with the correct Business Number in your accounting software.
Avoid making future payments to unregistered businesses unless there’s a valid reason and you fully understand the implications.
Keeping your supplier records up to date is essential to ensure compliance with CRA rules and to avoid unnecessary tax exposure.