XBert Type: Standard
Accounting Software: Xero, MYOB, QuickBooks Online
Country Restriction: Canada only
Risk Type: Cash Flow Risk
Business Function: Sales
Overview
The "Unpaid Income with a Cancelled Business" XBert helps you spot unpaid sales invoices owed to you by a customer whose Canadian business registration has been cancelled. A customer whose Enterprise Number has ceased may no longer be trading, which puts your outstanding income at risk of never being paid.
What it does
This XBert reviews your sales invoices and checks each customer's Canadian Enterprise Number against the federal business register. It compares the customer's registration status with the dates of your unpaid invoices, then highlights customers who owe you money but whose business has been cancelled.
How it works
XBert raises this alert when all of the following are true:
The customer's Canadian Enterprise Number is recorded against the register as cancelled (any status other than active or open).
You have one or more sales invoices to that customer with an amount still outstanding (the amount due is greater than $0.00).
The invoice was dated on or after the date the customer's registration was cancelled. Invoices you raised while the customer was still active are deliberately ignored.
It considers invoices in draft, submitted, authorised and paid states, because a part-paid invoice can be marked paid yet still have money outstanding. Voided and deleted invoices are ignored. When a customer qualifies, XBert groups their unpaid invoices together and reports one alert showing the total amount they still owe you.
Example / Use Case
Priya runs a print shop in Vancouver and invoices a regular customer, Maple Ridge Cafe, $1,240.00 for a catalogue run. The invoice goes unpaid for several weeks. Unknown to Priya, Maple Ridge Cafe's Enterprise Number was cancelled in the federal register the month before, and the cafe has quietly wound up. XBert flags the unpaid $1,240.00 against the cancelled business. Priya can now chase payment straight away while there is still someone to contact, rather than discovering the loss months later.
Accounting software
Xero, MYOB, QuickBooks Online.
Which countries it supports
Canada only.
Processes
This XBert supports your Sales (AR) process and helps reduce the risk of bad debts.
To resolve this alert:
Look up the customer on Canada's federal business register to confirm whether their Enterprise Number has genuinely been cancelled.
If the registration is still valid, update the Enterprise Number on the customer's contact in your accounting software so the record matches the register.
If the business really has been cancelled, contact the customer or its representatives and follow up the outstanding invoices for payment.
Decide whether to chase, re-issue or write off the unpaid amount, depending on what you learn.
Take care before extending further credit or sending new invoices to a customer whose business is no longer registered.
Once you have reviewed and corrected the details, mark the XBert as resolved.
Keeping customer records up to date with valid registration numbers supports better credit control and helps protect your cash flow.