I Think My Firm is Cooking Its Books

Beverly Flaxington is a practice management consultant. She answers questions from advisors facing human resource issues. To submit yours, email us here.

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Dear Bev,

Three and a half weeks ago, I took a new role in a leadership position with a well-known advisory firm in our area. I like the president and COO very much. My role as CFO was clearly defined and the interactions have been positive and supportive.

But I’m finding some questionable accounting as I am going through the financials from the last few years. I don’t know that it is nefarious or intentional, but it is irresponsible. The COO had been doing the books before my arrival. It was part of her responsibilities for the last seven years, and when she became overwhelmed with other duties, they created my role. She has a degree in accounting, so she was qualified to do this work.