Skip to main content

Unpaid Income With A Cancelled Business - CA

Marsha Galicia avatar
Written by Marsha Galicia
Updated over 3 weeks ago

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

Overview

The “Unpaid Income with a Cancelled Business” XBert helps you detect unpaid invoices sent to customers who are no longer registered on Canada’s Business Registries. It highlights potential risks in your accounts receivable by flagging inactive or dissolved entities that may not be able to settle their debts.

What it does

This XBert scans for unpaid invoices linked to customers whose Business Number is deregistered or cancelled. It alerts you when a contact has been matched as no longer active and you still have outstanding receivables with them.

How it works

XBert automatically:

  • Reviews all unpaid invoices for Canadian tenants

  • Flags businesses with a cancelled or deregistered Business Number on Canada’s Business Registries

  • Includes invoices that are not marked as deleted, voided, paid, draft or submitted

  • Only surfaces alerts for contacts with an outstanding balance greater than $0.00

  • Lists the total unpaid amount owed to your business

Example / Use Case

Steve runs a newsagency and sends an invoice for $85.00 to Dave’s Plumbing for office supplies. Weeks later, Steve discovers that Dave’s Plumbing is no longer an active business. The invoice remains unpaid. Luckily, Steve is able to contact Dave in time and settle the outstanding amount before the business concludes its affairs.

Without XBert’s alert, Steve may not have noticed the risk of non-payment due to the business being deregistered.

Accounting software

Xero, MYOB, QuickBooks

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 business using Canada’s Business Registries

  • If needed, contact the customer and request the correct Business Number and updated details

  • Update the Business Number in your accounting software to ensure records are accurate

  • Follow up on unpaid invoices and determine if re-issuing them is necessary

  • Avoid sending future invoices to unregistered or inactive entities unless absolutely required and you understand the associated risk

Keeping customer records up-to-date with valid registration numbers supports better credit control and ensures compliance when it comes to claiming tax credits like GST/HST.

Did this answer your question?