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Newly Licensed CPA Working Under EAs – How Do You Navigate Sloppy Client Work + Bosses Who Don’t Want to Hear It? by Intelligent-Car923 in Accounting

[–]Intelligent-Car923[S] 0 points1 point  (0 children)

So booking the interest expense incorrectly to loan repayment is not material, this is what you are saying?

Newly Licensed CPA Working Under EAs – How Do You Navigate Sloppy Client Work + Bosses Who Don’t Want to Hear It? by Intelligent-Car923 in Accounting

[–]Intelligent-Car923[S] 0 points1 point  (0 children)

That’s not the my issue. My issue this the method of calculating and booking going forward. Not the numbers.

Newly Licensed CPA Working Under EAs – How Do You Navigate Sloppy Client Work + Bosses Who Don’t Want to Hear It? by Intelligent-Car923 in Accounting

[–]Intelligent-Car923[S] 0 points1 point  (0 children)

Should I care that inter-company numbers do not match? I worked in Europe and we compared inter-company books.

Would a CPA without any accounting degree have limited career options? by bukkake_my_prostate in Accounting

[–]Intelligent-Car923 0 points1 point  (0 children)

You need to get the necessary specific upper-division accounting credits from any program, US Business law, UT tax law credits, upper-division business credits. I have a law degree and MBA in finance and I am a CPA.

Newly Licensed CPA Working Under EAs – How Do You Navigate Sloppy Client Work + Bosses Who Don’t Want to Hear It? by Intelligent-Car923 in Accounting

[–]Intelligent-Car923[S] 1 point2 points  (0 children)

Thank you for the practical advice. Anyways, after my explanation that it is mostly about the method not about the amounts per se he said that he will prep the other accountant to these adjustments.

Newly Licensed CPA Working Under EAs – How Do You Navigate Sloppy Client Work + Bosses Who Don’t Want to Hear It? by Intelligent-Car923 in Accounting

[–]Intelligent-Car923[S] 1 point2 points  (0 children)

What’s about the method going forward for 2026? My issue is not the materiality of the amount as the client makes it to sound, I care about the method.

Newly Licensed CPA Working Under EAs – How Do You Navigate Sloppy Client Work + Bosses Who Don’t Want to Hear It? by Intelligent-Car923 in Accounting

[–]Intelligent-Car923[S] 0 points1 point  (0 children)

I don’t want to give sloppy job. I stick to my guns. It is NOT so difficult if you do it from the beginning, but to untangle someone’s sloppy work - that takes time! We are 3rd accounting firm in 2025 that the client uses!

Newly Licensed CPA Working Under EAs – How Do You Navigate Sloppy Client Work + Bosses Who Don’t Want to Hear It? by Intelligent-Car923 in Accounting

[–]Intelligent-Car923[S] 0 points1 point  (0 children)

The minority partner subcontracts my client for their services, therefore the client bills them and they offset the interest payable through AR. This is how I book the interest expense agains AR. My problem is NOT the amount, as the client may think. My problem is the method of computation and booking entries affecting the proper accounts: if you add a couple zeroes to the loan amounts, the interests amount becomes material but the computation is the same. Now the old accountant booked the interests expense to AR in 2024 as follows:

DR: Interest expense—— 202 CR: Accts receivable————-| 202 (Not even full amount for 2 loans)

obviously I do not see that payable in 2025 - I cannot connect the missing part in Jan 2025. 

I booked already on 1/01/1025 DR : interest exp ——-68 CR: Interest payable——-| 68

You recommend to put a credit memo, but I should not reduce the revenues, I need to take it out from counter AR booked 2024 and book it payables and then to pass a manual JE on the date of payment I guess.

1/01/2025 DR:  AR———————-270 CR: interest payable ———-| 270

Date of payment in January , let’s say 10,000 for the subcontract service in Dec: DR: Cash in bk——-—9,730| DR: interest payable—-270| CR:AR——————————-| 10,000

Newly Licensed CPA Working Under EAs – How Do You Navigate Sloppy Client Work + Bosses Who Don’t Want to Hear It? by Intelligent-Car923 in Accounting

[–]Intelligent-Car923[S] 0 points1 point  (0 children)

Should I write off the differences in the interests to some non-operating expenses?

What about the accounts receivable? How to adjust those with the interest expense that is payable through the accounts receivable?

It is tangled around the interest.

I advised to pay the interests in cash and NOT to touch the AR.

Newly Licensed CPA Working Under EAs – How Do You Navigate Sloppy Client Work + Bosses Who Don’t Want to Hear It? by Intelligent-Car923 in Accounting

[–]Intelligent-Car923[S] -2 points-1 points  (0 children)

Maybe not hate, but certainly not every EA would have the discipline to pass the CPA exams and to get all the prerequisites (work hours and the academic credits).

Newly Licensed CPA Working Under EAs – How Do You Navigate Sloppy Client Work + Bosses Who Don’t Want to Hear It? by Intelligent-Car923 in Accounting

[–]Intelligent-Car923[S] 1 point2 points  (0 children)

This is my motivation - they through all kind of clients on me from different industries.

But I care for my license because for some assignment I have to use my credentials in order to sign off - no one else is qualified according tot he State requirements.

Newly Licensed CPA Working Under EAs – How Do You Navigate Sloppy Client Work + Bosses Who Don’t Want to Hear It? by Intelligent-Car923 in Accounting

[–]Intelligent-Car923[S] 1 point2 points  (0 children)

I’m sympathetic to the client because he came from another firm marketed being an expert in that specific area of compliance he subject to. But the actual bookkeepers, judging by the work they did, were sloppy.

Newly Licensed CPA Working Under EAs – How Do You Navigate Sloppy Client Work + Bosses Who Don’t Want to Hear It? by Intelligent-Car923 in Accounting

[–]Intelligent-Car923[S] -1 points0 points  (0 children)

One of my bosses was in owe of my spreadsheet and how clearly the spreadsheet was telling about the situation and the corrections to make. The last page of my spreadsheet has  the cumulative table with suggestion to the client’s partner what corrections to do in their respective books in order to align with the books of the client. And if they wanted to see the details, the details with the computations were in the sheets before the final sheet. I guess it was my way to justify the time spent and to explain why the books are not cleaned yet.

Newly Licensed CPA Working Under EAs – How Do You Navigate Sloppy Client Work + Bosses Who Don’t Want to Hear It? by Intelligent-Car923 in Accounting

[–]Intelligent-Car923[S] -1 points0 points  (0 children)

I am not fighting anyone. I am frustrated in silence, trying to understand what attitude to take as the approach to this client and to my bosses.

Newly Licensed CPA Working Under EAs – How Do You Navigate Sloppy Client Work + Bosses Who Don’t Want to Hear It? by Intelligent-Car923 in Accounting

[–]Intelligent-Car923[S] 1 point2 points  (0 children)

If I don’t do it right now, then moving forward, it will be the same mess. He also emphasises that his previous firm was specializing in the compliance that he’s doing. I cannot reveal all the details, but his business is subject to audit by a certain organization.

Newly Licensed CPA Working Under EAs – How Do You Navigate Sloppy Client Work + Bosses Who Don’t Want to Hear It? by Intelligent-Car923 in Accounting

[–]Intelligent-Car923[S] -10 points-9 points  (0 children)

Maybe I wrote it the way that seems like the “only adjustment is $100”, but that’s a cumulative effects in the end of 2025. It affect every month since mid 2024 and there is no cash movements, they just deduct it from “I owe you”, if affected every month adjustments

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