This content has been marked as final. Show 2 replies
Who r u?? What is your title in the company??
Does the company have an accountant?? a lawyer??
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.
Go to original post
Reply to original post
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.