Turn bookkeeping mistakes back into money with XBert

by XBert Team ~ 4 min read

Small bookkeeping errors cost your business money. Using XBert and Xero, you can catch that mistake money early, before it's gone for good.

Positive cash flow is vital to a sustainable business, but even small mistakes in your bookkeeping affect cash flow, cost money and can kill your business. Buried deep in your books are mistake money and financial risks. XBert can help keep your business alive by finding anomalies and errors early so you can turn mistakes back into money.

What is mistake money?

Mistake money is money lost, or about to be lost, due to avoidable bookkeeping mistakes that become small business risks. You could enter transaction details incorrectly, allocate a transaction to the wrong account or accidentally raise a duplicate bill or invoice. Errors also impact your reports, and you won't have a real picture of your business' health.

Many small business owners squeeze in bookkeeping at night, on weekends, or in-between the mountain of tasks that need doing. Bookkeeping and accounting are complicated; that's why there are professionals! The mix of rushed or infrequent bookkeeping, lack of expertise and no quality assurance can be a recipe for disaster.

Bookkeepers deal with hundreds of transactions each day across many clients. It's so easy to make a typo, select the wrong item from a drop-down panel or lose track of where things are at, especially if multiple people are working across the same clients.

You're only human, and mistakes happen.

What's more worrying is that errors and anomalies could be the result of dishonest practices of others which makes you a victim of fraud. If you can't identify the business risks, you may get ripped off!

Types of mistake money

GST payments Businesses can change their GST registration status at any time. A supplier you've dealt with for years could fall below the threshold and now is not registered to charge GST. If you're unaware of the change, you could continue to pay GST and can't claim that money as an input credit. Alternatively, you may not pay GST when you should, and could end up with a tax debt or fine.

Incorrect or invalid ABNs Without a valid ABN, you can't check the GST registration of a supplier and submit the right GST claim. The ABN and business name should match the record on the Australian Business Register (ABR). Otherwise, you could be trading with someone who is not who they claim to be, and you may never get that money back.

Unregistered and cancelled businesses A business can cancel their registration at any time, and it's very risky trading with unregistered or cancelled businesses.

Duplicate bills You may receive a duplicate bill from a supplier or raise a duplicate bill yourself for payment. Perhaps you pay twice and don't notice, or if you do notice, it could take a long time to get a refund or credit on your account.

Duplicate invoices If you create a duplicate invoice, you'll inflate your Sales or Income. You may make a purchase based on those inflated figures and get a shock when you discover the money is not there. Sending duplicate invoices will annoy your customers and clients who may switch your competitor instead. The other problem is that you spend time chasing money that you're not owed.

Duplicate contacts

Duplicate contact records or records with inaccurate or incomplete information can mean your invoices get sent to the wrong person or the wrong address leading to payment delays.

Account coding errors

Coding a transaction incorrectly or allocating it to the wrong account doesn't just affect your reports, you could pay the ATO (Australian Tax Office) more than you should, submit inaccurate GST claims or miss out on valuable tax deductions.

What can I do about mistake money?

Good bookkeeping and accounting are crucial to running any business well. Set aside regular time for administration and bookkeeping, weekly if possible; keep your contact records updated; and use an integrated accounting system to efficiently manage the books and give an up-to-date financial status of your business and cash flow.

How do you minimise errors, small business risks and save mistake money? You could check your books, and re-check, then check again, but there aren't enough hours in the day or probably enough staff available to do this. You'd also need to manually check the ABR each time before you make any payments. Urgh!

Wouldn't it be wonderful if there was a low-cost and simple solution that did all the hard work for you and found mistake money before it's too late?

Wouldn't it be a massive time-saver if there was an accounting solution to automate the auditing of your books and manual checks to ensure you don't pay GST when you shouldn't or trade with a cancelled business?

Well, hello there, XBert.

XBert in action

XBert is a Xero connected app that uses sophisticated algorithms and AI to find anomalies, patterns and possible errors in your cloud accounting data. XBert links with the ABR to monitor business registration, GST status and ABN of your trading partners so that you don't have to.

XBert analyses your data hourly, automating many of the manual bookkeeping checks and alerts you to financial risks in your books.

For busy bookkeeping, accounting and advisory practices XBert CONNECT provides a unique way to manage your business process, streamline workflow and keep track of clients' financial risk easily and efficiently from the one dashboard.

XBert Blog InPost Images MistakeMoney Alerts

The risk alerts, called XBerts, link directly to the relevant Xero entry or ABR record. You resolve the risk in Xero and can file that XBert away. You can also create tasks and can assign XBerts and tasks to someone to manage.

With XBert, you're alerted early and can take action to address any issues or impacts on your cash flow. You can correct any mistakes such as duplicate contact records, bills or invoices, know when a supplier is not registered for GST, and reduce the risks associated with unregistered or cancelled businesses.

Your books will be more accurate and so will your reports, so you'll have better information to make better business decisions.

Peace of mind and finding bookkeeping mistakes early

Errors and anomalies in your books cost you money or may be a sign of fraud! Inaccurate records create inaccurate reports which can affect the future of your business.

XBert helps keep your business alive by finding common bookkeeping risks so you can turn mistakes back into money.

XBert's automated audit and risk detection saves you money, but also saves you time and effort. Instead of wasting time and resources searching for and fixing mistakes or monitoring the ABR, you can focus on your business, customers and clients.

XBert is a fantastic collaboration tool for business owners, business managers, finance teams, bookkeepers and accountants to work together and resolve risks early.

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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