Quick ethics question for the group. Long-time client here in Dallas wants me to backdate some invoices to help with their fiscal year reporting. They're saying it's just a timing issue and the work was substantially complete in their previous tax year. The amounts involved are significant - about $45,000 in TXU audit findings. This doesn't feel right to me but they're pushing hard. Anyone dealt with similar requests?
Client asking me to backdate invoices for their tax purposes
Marcus, don't even think about it. That's straight-up fraud, regardless of how they try to spin it. Here in California I've had clients make similar requests and the answer is always no. Your invoice dates need to reflect when services were actually provided and billed. Their tax problems aren't your ethics problems.
Dan's absolutely right. I had a client in Wichita try this with some Westar audit work a couple years back. When I refused, they threatened to find another auditor who would be "more flexible." Let them go - your CUBA certification and professional reputation are worth more than any single client. Plus, you could face legal liability if their accounting irregularities get investigated.
The fact that they're pushing hard after you expressed concerns is another red flag. Legitimate businesses don't pressure service providers to falsify documents. Here in Phoenix with APS accounts, I've learned that clients who ask you to bend ethics rules in one area will ask you to compromise in others. This is probably just the tip of the iceberg.
You're all right - I knew this was wrong but wanted to make sure I wasn't being overly rigid. Going to tell them no and explain that accurate documentation protects both of us. If they want to end the relationship over this, so be it. Better than risking my license and reputation over their tax planning issues.
Good decision Marcus. Document this conversation in your client files too - if they're asking you to backdate invoices, they might be asking other vendors to do similar things. Having a record of your ethical stance could be important if any regulatory issues come up later. Sometimes saying no is the best service you can provide a client.