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Is my company accounting correctly?

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Hi there. Need your independent advice please. I started working recently at a small business who do IT work and contracting for other businesses and invoice them monthly. My role is to send these invoices out, chase money, deal with some Ap, etc (a basic finance assistant role) while the main accounts are externally outsourced to the local accountants. 

 The companys YE was end of April and when sending all the invoices they did for that period to the accountants, my manager (the founder / MD) asked me to withhold all APril invoices and tell the accountants they did no IT work for that month. Instead, dividing the invoices across May, June and July and sayinh the work was done in those months. 
 
why would this be? Vat would still be the same as they are still recognising the invoices / income. But just not in the actual month. 
 

Thanks 

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By Paul Crowley
14th Aug 2020 08:06

Limited company?

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Replying to Paul Crowley:
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By Allyaz
14th Aug 2020 08:12

They are a limited company yes.

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By Paul Crowley
14th Aug 2020 08:09

Different to the other IT company?

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By Wanderer
14th Aug 2020 08:18

Allyaz wrote:
Is my company accounting correctly?

Hi there. Need your independent advice please. I started working recently at a small business who do IT work and contracting for other businesses and invoice them monthly. My role is to send these invoices out, chase money, deal with some Ap, etc (a basic finance assistant role) while the main accounts are externally outsourced to the local accountants. 

 The companys YE was end of April and when sending all the invoices they did for that period to the accountants, my manager (the founder / MD) asked me to withhold all APril invoices and tell the accountants they did no IT work for that month. Instead, dividing the invoices across May, June and July and sayinh the work was done in those months. 
 
why would this be? Vat would still be the same as they are still recognising the invoices / income. But just not in the actual month. 
 

Thanks 

Oh come on. In another thread you state you are a fully qualified ACCA and now you're asking "Is my company accounting correctly?"!
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By ireallyshouldknowthisbut
14th Aug 2020 09:34

"why" well its obviously tax fraud.

If you are an ACCA member then speak to their ethics advisory bods (I am ICAEW but i think you have similar).

I imagine you need to resign.

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By SXGuy
14th Aug 2020 09:47

The answer to your question is so blatantly obvious I'm baffled you asked it. Think of year end. Think of tax...

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By Bo Peep
14th Aug 2020 09:49

As have others have said, it sounds like straight-up tax fraud/manipulation of revenue recognition. Are there any performance based pay targets within the company? Bank loan covenants? Given this has come from the MD, it makes your role in finance pretty untenable.

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By bernard michael
14th Aug 2020 09:56

To add to what the others have said did the company try to claim any furlough support ??

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Replying to bernard michael:
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By Paul Crowley
14th Aug 2020 10:02

My first post was to decide if SEISS or Furlough was the issue

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