Accounting Error

Terry_Turner

Yes but was unaware that they would benefit when the figures were provided.

Pennywise

Was the person a qualified accountant?

Terry_Turner

Not qualified. Basic book keeping qualification.

xapprenticex

Terry, I'm going to assume its you as you seem to know everything about the case.

How can software be in error? Thats like saying the calculator was wrong. Maybe im misunderstanding you.

You can end up losing you job, it really depends on how close and valued you are. Also it could end up being a situation where someones head 'Must' roll, so in that case it will be you. Have you spoken to your line manager about this?

Also how did you manage to become a FC without being a qualified accountant? Just with a book keeping qualification??

But yes, more checks should be in place to prevent this from happening.

I'd own up before I was found out, assuming they dont know already.

dlmcr

This thread makes no sense whatsoever.

This sounds like what happened ast Tesco. "oh no we just made an Honest Error, guv honest". we just "misposted" 250mil worth of revenue into the wrong period and deferred some bills into a later period. Oops.

On the "error in software" point: Accounting software isn't just "wrong" as it gets rigorously tested pre-release but if it is the system that has been physically written wrongly so that there are bugs that have not been picked up as part of pre release testing then approach the supplier of the software.

Assuming that it is not really the software that is at fault but something else, you cannot just "post" the wrong figure in a P&L. That is what a suspense account is for. Do you understand how a set of accounts and P&L works and how they relate? Overstating profit is something that will have been planned and thought out how it would be done in order for profit to appear that way, and if this story is correct is a much more serious issue than a question about just an employee losing their job. Even if the wrong "figure" was provided there would have been a "drill down" available which would have made it obvious there was something incorrectly done in terms of procedure, deliberately or accidently.

The issue is not about whether it is a book-keeper or account of FC doing this work (although that is a serious enough issue itself) but the issue is there is nobody at a more senior level or externally auditing what has been done and what assumptions have been made as part of the preparation of the P&L.

You might also not want to publicise your real name as your posting name if that is what it is - not too long with google and we might find out more than you think.

Terry_Turner

There is no overstating profit or anything like that. It was an incorrect accrual, meaning the costs for the year were minus the accrual figure. There will b no financial gain from this as once the accounts are correctly compiled the issue will come to light.

eamon

In the past accounting systems did throw the odd error (years ago I encountered one with some Computer Associate software) but I agree with other posters in that today it is extremely rare. However if the OP has been transposing data from a spreadsheet then leaves quite a lot of room for error.

Timpu

Bonuses would not be paid on a figure that has not been thoroughly checked, re-checked and checked again. Anyone with 'impeccable competence' would do so with their eyes closed. Why would a GM leave something so crucial to someone with basic bookeeping qualifications rather than a qualified accountant?

IMHO this story does not add up. I'll give OP the benefit of my doubts and assume bits are missing to protect identity and the company.

Edit: Agree with others, employees can lose their job for failing to meet performance expectations of the role.

getmore4less

Terry_Turner wrote: »

There is no overstating profit or anything like that. It was an incorrect accrual, meaning the costs for the year were minus the accrual figure. There will b no financial gain from this as once the accounts are correctly compiled the issue will come to light.

You seem to be asking when my mistake is found out can I bee sacked?

asajj

xapprenticex wrote: »

Also how did you manage to become a FC without being a qualified accountant? Just with a book keeping qualification??

I assume this would be finance assistant. Otherwise that company has bigger issues.