XBert Type: Standard
Accounting Software: Xero, MYOB, QuickBooks Online
Country Restriction: New Zealand only
Risk Type: Cash Flow Risk
Business Function: Sales
Overview
This XBert warns you when a customer who still owes you money is no longer an active business on the New Zealand Business Number (NZBN) Register. A business is usually removed from the register when it has been wound up or liquidated. If this happens while the customer still owes you, there is a real risk you may never be paid, so it pays to act quickly.
What it does
XBert takes the contacts in your accounting software that have an NZBN recorded against them and matches each one to the official NZBN Register. It then checks whether you still have unpaid sales invoices owing from those customers. If a matched customer has been removed from the register and you are still owed money, XBert raises this alert.
How it works
The alert is raised when all of the following are true:
The customer has an NZBN recorded against their contact in your accounting software.
XBert has confidently matched that contact to a record on the NZBN Register.
The NZBN Register shows the business as removed (no longer active), which usually means it has been wound up or liquidated.
You have one or more sales invoices to that customer that are still owing, with more than $0.00 left to pay.
At least one of those invoices is dated on or after the date the business was removed from the register.
XBert ignores invoices that have been deleted or voided, and any invoice that is already fully paid. It only runs for New Zealand businesses, and only acts when the match to the register is a strong, high-confidence one, so you are not troubled by false alarms.
Example/Use Case
Steve runs a newsagency in Hamilton. He sends an invoice for $850.00 to Dave's Plumbing for stationery supplied over the past month. Around the same time, Dave's Plumbing is wound up and removed from the NZBN Register. Steve's invoice is still unpaid. XBert matches Dave's Plumbing to the register, sees that it is no longer active, and alerts Steve that he is still owed $850.00 from a customer that may no longer be able to pay. Acting quickly, Steve contacts the appointed liquidator to lodge his claim before the company's affairs are wound up, giving himself the best chance of recovering the debt.
Accounting software
This XBert runs for businesses using Xero, MYOB or QuickBooks Online.
Which countries it supports
This XBert is available for New Zealand businesses only, because it relies on the New Zealand Business Number (NZBN) Register.
Processes
Business area: Sales (Accounts Receivable). To resolve this XBert, work through the following steps:
Look the customer up on the NZBN Register at nzbn.govt.nz to confirm the NZBN is correct and to check the current status.
If the business has been removed from the register, treat the money owed as at risk, as the customer may be unable to pay.
Review the unpaid invoices for this customer and confirm the amount still outstanding is accurate.
Contact the customer, or the appointed liquidator, as soon as possible to chase the money owed and lodge any claim before the business is wound up.
If the NZBN recorded against the contact is wrong or out of date, update your accounting records with the correct details.
Avoid extending further credit or issuing new invoices to a business that is no longer active.
Once you have reviewed the contact and taken action, mark the XBert as resolved.