Today’s post isn’t about my assistant, but about a co-worker.
Those of you out there in non-accounting land the basic “building blocks” of Financial Statements are: Assets, Liabilities, Equity, Revenue, Expenses, Gains & Losses. The first 3 – Assets, Liabilities, Equity – comprise the Balance Sheet. The rest – the remaining 4 – make up the Income Statement of also known as the P&L (Profit & Loss Statement).
My co-worker’s assistant did not put through an Accounts Payable Transaction correctly and now her Accounts Payable subledger does not match the General Ledger (the GL is what we report on, the subledger is a sort of “holding pot” of various transactions that gets transferred over as one lump sum at the end of the month). My co-worker has spent the last 3 hours trying to fix the error her assistant made.
Now bearing in mind that the subledgers (AP, AR, Fixed Assets, etc) are closed for August and any transactions flowing through them will be for September – no backdating a transaction in the subledgers. My co-worker has tried to figure out how to get her schlepp to put through a transaction in August.
When I informed my co-worker that August is closed and there is nothing she can do in the subledger she kept saying that she has to try. I told her the correction can be done in September, it will be a reconciling issue between the subledger and the GL, and to just accrue in the GL what should be reported. She was highly flustered, especially when I told her to put it off until tomorrow afternoon – as we do our preliminary reporting to the NYC Regional Office tomorrow morning. She got very tense and stressed until I told her that this does not affect the P&L — these entries she’s trying to do are between Balance Sheet Accounts.
Her response was – I wish someone told me these were not P&L accounts. Argh! Grant me strength! She’s a fricken Senior Accountant, at this level I expect someone to atleast know their Chart of Accounts and know which accounts go into which Financial Statement.
I’m surrounded by obtuse people.