Accounting tools to catch risks before you know the risks exist and spot fraud

by XBert Team ~ 4 min read

XBert is the bookkeeping and accounting tool to catch risks before you know the risks exist.

Are you or your bookkeeper making tiny errors with invoicing that could lead to the loss of thousands of dollars of income? Are you spending money you can't afford because your reports are incorrect? Maybe somebody is getting creative with your accounts and taking money from the business?

XBert uses machine learning to detect possible bookkeeping entry errors and helps you reduce risk, including potential fraud.

Just a little whoopsie, or something more

Ahhh the curse of fat fingers. We've all been there; sent a message with a typo in it, or worse, sent a message to the wrong person entirely. Doh! Hopefully, it's no biggie, maybe just a little awkward next time you meet.

But typos and errors like this in your accounting system can cost you big.

Imagine you enter an invoice for $100,000 instead of $10,000. That one extra digit will completely throw out your forecasting and overestimate your income by a whopping $90,000. If you don't spot the error at the time, you'll get a rude shock when it's time to pay that invoice.

It's so easy for you or your bookkeeper to slip. Without noticing, an extra digit is added to the total, one is left out, or there's a transposition error charging $9100 rather than $1900.

If your invoice is for an amount less than it should be, will your client tell you? If they don't, you're out of pocket. If it's more than it should be - your client will almost certainly tell you. They could get annoyed thinking you're trying to pull the wool over, or that you're a little incompetent, jeopardising your relationship.

These errors mean you can't trust your reporting. Your income will either be understated or overstated and not reliable as a basis for business decisions.

The problem could worsen if you have multiple people entering invoice details, particularly if they're not familiar with your business and don't recognise when things aren't quite right.

There could be a far more serious problem. Someone with access to your accounts may be using these incorrect entries to commit fraud against.

Finding the issue before it's too late saves you from potential losses and any damage to your business relationships.

Hands up who's plagued with fat fingers?

Small business owners are busy. The accounts get done during any spare moment you can find. Hands up if you enter invoices while you're having lunch; sandwich in one hand, the other on the food-stained keyboard? Or late at night while fighting to keep your eyelids open?

Well, that's a lot of hands! It's no surprise that typos and errors can get made.

If you have a new bookkeeper or finance person on your team, they won't know your business history with each client. They may not recognise that an invoice amount is unusual. It won't be flagged with you, and that mistake will be carried through to payment.

XBert will catch unusual invoicing activity and errors before it's too late. You'll be alerted when an invoice amount differs compared to your past activity with that client.

XBert in action

XBert's machine learning technology gives you data-driven alerts when an invoice is raised that doesn't follow past behaviour. You'll be advised to review the invoice and make sure it's correct.

XBert reviews your invoice history to determine if the current amount is outside the usual range for the client. When compared to other months, you may have over-invoiced or under-invoiced.

If this invoice amount is more than previous months, it could mean that your client is spending more with you - which is awesome. Or, if it's less, there could be a valid reason.

However, you should always investigate why an invoice amount is unusual.

XBert InvoiceRisk 8k

Resolving this in XBert is quick and simple. Open up the sales records for this client in your linked cloud-based accounting software and review your recent invoices.

If any past invoices are incorrect, you may need to reissue them or create a credit note to the client. If the current invoice is wrong, correct it, then send it to your client. If you've already sent the incorrect invoice, you may need to void it. Tell the client to ignore payment for the first invoice number and pay the new invoice instead.

Peace of mind knowing your numbers are right

XBert alerts you or your bookkeeper that there may be an invoicing error based on the previous invoicing for this client. You can confirm the accuracy and take action, if required, to fix the error.

If this wasn't detected, you may make purchasing and business decisions on inaccurate income reports. Imagine if small mistakes like that get repeated! There's also the danger your client gets annoyed, thinks you're a goose, and that damages your relationship.

It may not be due to an entry error. Your client may be expanding and increasing their spend. Woohoo! Give them a call, stay on their preferred list. Or perhaps they're reducing their spend due to reasons you don't know. If you're not in regular contact with the client, you may not pick up on any budget changes or spend patterns.

"I do a lot of repeat work for clients, especially in the new housing sector. I usually do the accounts last thing at night when I'm tired and easily distracted. It's great that XBert picks up possible errors in my invoicing. It means I'm not p*ssing off my repeat clients by over-charging, and not losing money by under-charging. Either way, it saves me money." James, electrician from WA

Unusual monthly invoicing and errors 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 and save you 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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