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Question

An accountant always had trouble giving information that he should have recorded in Quick Books. He was using the most recent version of Quick Books,we run a small insurance brokerage company, and the accountant was supposed to keep track of Expenses and Revenue-I'm assuming he categorized the expenses -we ran commission cycles every week and paid commission to our selling agents. Commission was to be recorded in Qb's, & checks were recorded in batches as journal entries-the amount recorded in the journal entry had to be classified as a type of expense...I believe he was classifying it as cost of goods sold. Escrow was also withheld ea. week from commissions and was to be recorded in QB as well. Other Exp. were recorded as "vendors", (phone bill, rent, utilities, etc)whenever I asked him to run a report on a expense or escrow, he had trouble. We let him go but I need to know how I can tell the financials he gave us were right-and how to know if he was recording things correctly?

Submitted: 94 days and 8 hours ago.
Category: Finance
Value: $9
Status: CLOSED
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Posted by James Heal 94 days and 5 hours ago.

Answer

Thanks for the question.

 

I'm sorry to hear about this and i agree with you - it's not fair for an accountant to give you this type of service.

 

Absolutely you have recourse here, but you must follow these steps and don't procrastinate.

 

This accountant has an obligation to straighten this out for you, and if he's a CPA especially, he's governed by certain guidelines that prohibit him from not giving you proper service. Either way, as a tax preparer, he's governed by the state to give you correct answers and proper help.

 

It's too tough for you figure this out without his help.

 

First, contact the accountant again, in a very polite way, and ask him to straighten this out and then you can part ways, but not before.

 

If that doesn't work, contact a non-profit arbitration company who will halt proceedings until both sides of the story are presented. They will then make an impartial ruling based on facts and i don't think you wil lose based on the information you provided. The accounting industry has such a negative persona right now, they don't have a leg to stand on. Furthermore, he's the one who messed this up and the onus of proof is on him to account for it.

 

Here's a link for your reference.

 

 

http://www.adrforum.com/

 

 

Next, depending on the outcome, have your local attorney send a demand letter to the accountant to get theis straightened out until everything gets cleared up. These demand letters are inexpensive and usually get the job done.

 

Next, consult the local attorney about a possible malpractice. It sounds to me as if this was done without proper care and the accountant may be liable based on what you told me.

 

Remember, the accountants have such a negative reputation right now, he will work something out with you if you follow these steps and put pressure on him.

 

Regrads.

94 days and 4 hours ago.

Reply

Thanks for the answer, but I'm still not clear on one thing...my main concern is that my financial reports have been wrong...if this accountant had trouble running reports, I'm taking a guess it's because he wasnt recording things or recording things wrong...if this is the case,wouldn't it cause my Financials to be inaccurate?

Accepted Answer

Yes, it may cause everything to be inaccurate, and in that case you're going to need competent help from another accountant.

 

The steps I've provided allow you to work with the former accountant to at least get his reaonsing behind what he did record,so you can go in with a clear picture to the new accountant.

 

Furthermore, It's going to cost you to have a new accountant clean up what this guy left you with and I believe it's his responsibility to work with you or the new accountant to clear things up and/or pay damages.

 

Please follow the steps I provided earlier and if needed take legal action against your former accountant.

 

Regards.

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Expert: James Heal
Pos. Feedback: 100.0 %
Accepts: 
Answered: 8/20/2009

Financial Advisor

15 years expertise in all ares of personal finance, including credit cards, mortgages, real estate.

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