We have been using WHMCS for at least 5 years.
We have also been using the same accountants for about 4 years.
About two years ago our accountants came to us claiming that due to our "billing system" we had a major outstanding VAT liability. The couldn't exactly tell us what the problem is but said something in the lines of WHMCS is a snapshot based system and they need an audit trial based / true accounting system. To be honest, I still don't know exactly what they meant because I am not an accountant and they don't seem to understand WHMCS very well at all.
Nevertheless, we carried on, giving them our monthly income reports and what not. Then we were told that because of these "billing" problems they recommend we rather go over from accrual basis to cash basis, in order to have more accurate books. Technically speaking this would be illegal in our country due to our high turnover, but the accountants insisted this would be the only way to work around the problems they are having with the billing system.
Now again recently I was confronted with another VAT surprise. Apparently now what's happening is monthly snapshots are taken of our books, after we apply debit orders, and this compared with the month before. To be honest this entire process is very foreign and unclear to me. Apparently now I will be getting VAT surprises every two months due to a new discrepancy that was picked up.
I am now engaging with a consultant to assist me with this issue. He said that for starters we should approach WHMCS and ask them if we can get an audit trial of every change on every record in every invoice, with regards to status and line amounts.
I would just like to know from the community if anyone has experienced the same problem? Has anyone's accountants complained saying that what happens in WHMCS doesn't truly reflect what's happening in the books? Can anyone explain to me in clear terms exactly why WHMCS might be screwing with my VAT?
We have also been using the same accountants for about 4 years.
About two years ago our accountants came to us claiming that due to our "billing system" we had a major outstanding VAT liability. The couldn't exactly tell us what the problem is but said something in the lines of WHMCS is a snapshot based system and they need an audit trial based / true accounting system. To be honest, I still don't know exactly what they meant because I am not an accountant and they don't seem to understand WHMCS very well at all.
Nevertheless, we carried on, giving them our monthly income reports and what not. Then we were told that because of these "billing" problems they recommend we rather go over from accrual basis to cash basis, in order to have more accurate books. Technically speaking this would be illegal in our country due to our high turnover, but the accountants insisted this would be the only way to work around the problems they are having with the billing system.
Now again recently I was confronted with another VAT surprise. Apparently now what's happening is monthly snapshots are taken of our books, after we apply debit orders, and this compared with the month before. To be honest this entire process is very foreign and unclear to me. Apparently now I will be getting VAT surprises every two months due to a new discrepancy that was picked up.
I am now engaging with a consultant to assist me with this issue. He said that for starters we should approach WHMCS and ask them if we can get an audit trial of every change on every record in every invoice, with regards to status and line amounts.
I would just like to know from the community if anyone has experienced the same problem? Has anyone's accountants complained saying that what happens in WHMCS doesn't truly reflect what's happening in the books? Can anyone explain to me in clear terms exactly why WHMCS might be screwing with my VAT?