Beware of dodgy dealers and bookkeeping risks | Watch out for Incorrect ABNs

by XBert Team ~ 3 min read

XBert connects with the Australian Business Registry to ensure you are trading with registered business so you can reduce risk and save money.

Are you certain that everyone you or your clients do business with is correctly registered with an ABN and are who they claim to be? How would your business or your client's business cope if one day a trading partner vanished into thin air owing money?

XBert connects with the Australian Business Register to check ABN records, helping reduce the risk of dealing with unregistered companies and avoiding potential financial danger.

Throwing money away unnecessarily

Imagine you decide the best way to grow your business is to fork out $50,000 for a new piece of equipment for your factory. You've done your research, know the features you want, calculated the expected boost to productivity, and found the best purchase price.

Nice work! That's $50K well spent.

After only a month of use, there's a major fault with the machine. BUGGER! But, no worries, you'll call the company that supplied it to get it replaced within the warranty period.

Except, the supplier has vanished. You discover the supplier wasn't even a registered business and now you'll have a $12,000 repair bill to cover as well.

You've been scammed, royally!

If you'd known to begin with the supplier was unregistered, alarm bells would clang, and you'd look for a more reputable business. Saving you thousands of dollars.

If you trade in Australia with someone that doesn't have an ABN, firstly you're a bloody galah. Secondly, you're exposing your business to increased risk and potentially a damaging financial loss.

So many things can go wrong. A warranty given by an unregistered business is worth less-than peanuts. They could disappear at any time with jobs half-finished, shoddy work, or products not supplied.

You're left out-of-pocket. There may be an extra financial burden from any tax and GST implications. Your association with an unregistered business could also damage your reputation.

Urrggghh, what a headache.

Who remembers to check every supplier? Be honest now

Most small business owners have to manage their invoicing and accounts during any sliver of time they can find. That sliver is usually found late at night after the family has gone to bed, on weekends, perhaps before sparrow's, or during the workday between a dozen other urgent tasks.

You want to get the accounts over with as quickly and painlessly as possible.

You may not think to check whether new suppliers are registered businesses. What a time-drain that would be. You may become complacent, particularly if you also deal with overseas suppliers who don't require an ABN.

It's not just new suppliers you should watch out for. You could have previously dealt with a business whose ABN has now been cancelled. They're continuing to trade illegally, but you're not aware.

Trading with an unregistered business is a huge risk.

Luckily, there's a way to know that any business you or your client deals with is correctly registered.

XBert in action

XBert regularly connects with the Australian Busines Register to check ABN records and monitors any changes.

XBert alerts you when a contact's ABN is cancelled, inactive, or doesn't exist on the ABR. They may not be registered.

XBert BookkeepingRisk ABN Cancelled

If you choose to trade with an unregistered business, you're in danger of fly-by-night operators doing shoddy work, or taking your money without delivering the expected result.

There will also be GST and tax implications. If an Australian supplier doesn't provide their ABN, you may need to withhold an amount (currently 47%) from their payment and send it to the ATO.

Without an ABN or the correct ABN, you can't check the GST status of the business. You may pay no GST, then be liable for that amount. Or, the business sends you a tax invoice, including GST. You pay that GST amount but can't claim it back on your BAS since they're not GST registered.

XBert also alerts you when an ABN or business name doesn't match the ABR record.

XBert BookkeepingRisk ABN DoesntMatch

You should check that you've entered the contact's details correctly, perhaps you or your bookkeeper made a typo with the ABN or the business name. If the details you entered are the same as what was provided to you, then that business may not be who they say they are.

Peace of mind that you're steering clear of unregistered businesses

Your business, or your client's business, could avoid additional expense and hassle with XBert. Risk alerts will identify issues with unregistered business, ABNs, business names and GST statuses.

You can clarify details to make sure the business is legitimate, and update their contact records in your linked cloud-based accounting system.

"It's so reassuring to know that XBert will tell me if a supplier is unregistered. The risk of dealing with a dodgy business isn't worth it! Paying for XBert is well worth it for the thousands it could save me." Marie is the owner of a bakery in suburban Sydney

ABN errors and Australian Business Register record discrepancies are just some of the many risks XBert will find reviewing your accounting data on an hourly basis. Using sophisticated algorithms, predictive analytics, and machine learning, XBert is there to detect business risks, saving you time and money.

If you're serious about business success, sync your accounting data with XBert, and in just a few minutes, you'll discover the amount of money at risk and how to prevent losing it. Book a demo or start your FREE 14-day trial now!

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