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    2 Replies Latest reply on May 12, 2010 8:55 AM by CFO45202

    Officer responsibility

    CFO45202 Newbie
      As a result of an officers mistake, the company incurred fairly sizeable expenses, causing the company to miss budgeted profits. The officer is also an owner. The officer recommended that they take personal responsibility for the expenses the business incurred as a result of their mistake. If the officer reimburses the company for the expenses incurred, can the the expenses be removed from the company's financials? I assume the entry would look like - debit accounts receivable from owner / credit expense.
        • Re: Officer responsibility
          LUCKIEST Guide
          Officer responsibility

          Who r u?? What is your title in the company??

          Does the company have an accountant?? a lawyer??
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          • Re: Officer responsibility
            CFO45202 Newbie
            I am the controller, recently brought in. The company is not interested in taking legal action. While the mistake is significant, it was not illegal, was not done intentionally, and did not benefit any individual. That said, the officer wants to take personal financial responsibility for the mistake so the company does not incur the expense. We are referring the issue to accountants but I wanted to see if anyone had any ideas here.