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Whats your accounting process?


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I know I should really be talking to my accountant about this but I wanted to get the process sorted in my own head before I tried to explain it to someone else.

 

So can you share your accounting process with me in relation to where WHMCS works with your accounting package.

 

Thanks a bunch! :)

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Hi,

 

I think that would have a lot to do on the Country you are in and the requirements set by your government for tax reporting etc.

 

One VERY important thing that all businesses should do, even if a hobby business, is to keep bank accounts completely separate from personal bank accounts.

 

If all bills paid and payments received go through that business bank account, then you have a very good trail of transactions, simply by looking at all your bank statements for the financial year.

 

We do NOT do double entries by duplicating WHMCS data into an accounting programme, but we DO add in all transactions (reconciled with our bank statements). Some small businesses may even be able to do their accounting/books once a year just before tax time by simply using a spreadsheet and their bank statements.

 

WHMCS for us is a time saver. We do NOT "rely" on it at any stage for Tax purposes, but it does automate all the Invoices etc, which used to take us several days a month to generate. In fact WHMCS has saved us 1/2 a person so far... we are now working on the other half ;)

 

Cheers,

Paul

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For the most part all you need are the invoices from WHMCS, and the bank records (I too have a different account for both). As in my country I have report sales and pay tax every month I just take it all to my accountant and she takes care of it. It is also very important to include a lot of details on the invoices (make sure you have your full business name, address, phone, business registration number/tax number or some kind of business specific number and whether tax is applied).

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Sorry, a bit off topic... but...

...Monthly tax? Wow!

 

And here I am thinking our quarterly BAS returns were annoying. :D

Tax is only done annually here, and can even be done up to 10 months after the end of financial year.

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Ah yes :) Poland is no good place to run a business, with VAT laws, taxes due every month (that's income and VAT) as well as ZUS payments (again monthly), which is your government run health insurance and retirement benefits. The last part is the worse as those payments are 1/5 of the average monthly salary here in Poland :(

 

America is nice, low tax, only in the state you live in, easy to read laws (at least compared to what they make you go through in Poland), here having an accountant is nearly a must unless you want a new career :)

 

Just to shock you a bit more, I have to pay VAT (22%) for all orders within the EU and the income tax in the Polish government follows these guidelines:

 

- 19% (most commonly chosen) you can write off expenses of running your business

- 3% (can only be used under a certain income) you do not get to write off expenses

- 18%/32% (the 18% is until you reach a certain income, than its 32%) you get to write off expenses and some other crap, all I know is this won't benefit me :)

 

I use the 3% tax rate as my income isn't that huge and neither are my expenses, though by September/October I'll have to switch as my business has been growing steadily over the last few weeks ;)

Edited by DedicatedPros
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