Screwing up Accounting BAD!!!

  • Creator
    Topic
  • #193009
    Dog pounder1977
    Participant

    I have just started my first entry level accounting position full time last week and today was day 6. I have to say that I am truly second guessing whether this field is for me. For instance, I worked part time for the past 3 months and the accounting manager had me doing small work such as B/S, reconciliations, payroll. etc. And I thought to myself “hey this is easy!” But now that I am full time, the more difficult work is coming in and it is just NOT clicking in my brain AT ALL how to do the work! One thing that confuses me the most is that I am trying to apply my knowledge from school with everything I do but the way they do accounting contradicts what I learned in college!

    Even the language is different! The accounting manager will say to me “blah blah blah… check this INVOICE” And in my brain I am thinking OK accounts payable, but NO she is referring to an Account Receivable? Another example, in school we are taught when a business has warranties, they Dr. the warranty expense and Cr. the estimated warranty payable account to write off the expense for the year. Then when it is time to pay the warranty, Dr. the estimated payable and Cr. the Cash account. Easy day! At work? Not so easy!

    The way they do it is pay the warranty through the manufacturer as a third party.For instance, a customer needs work done that is covered under warranty. We create Cr. the account payable for PARTS and order them from the manufacturer. Then when the manufacturer decides to pay the warranty, they send us a credit memo for our accounts payable (parts) and then we create an account receivable (or “invoice” I should say) for that credit memo. Just completely ignores everything else about warranty expense, warranty payable, and everything taught in college. That was just an easy example, it gets even more confusing when the manufacturer decides NOT to pay at ALL! I am seriously thinking about quitting and just going to school full time for my MAcc and getting my CPA because I am already getting stressed out and I haven’t even been there 2 weeks full time.

    I work at a dealership by the way. Has anyone else felt like this before? I read one post by a guy who accepted a job as a Cost Accountant and his experience is very similar to mine. All I want to do as an accountant is review and prepare financial statements, conduct audits, give consultations using ratios, etc. Basically do ACTUAL accountant things we are taught in school. Do I need to work at a firm or something to experience this kind of work?

    One day I will face that exam.

Viewing 15 replies - 1 through 15 (of 16 total)
  • Author
    Replies
  • #660502
    sdguy
    Participant

    If you don't feel comfortable and fully understand the data entry, then you won't be successful doing the more complex things you want to do.

    The more complex stuff requires the data entry to be done correctly, as they say, garbage in garbage out. Plus if you don't understand it, then how will you manage people below you to do it? And review their work? The financial statements and ratio calcs will be wrong.

    Btw, “invoice” = AR, “bill” = AP

    Your accounting manager was right. This is standard terminology.

    AUD: 83
    FAR: 77
    REG: 86
    BEC: 86

    #660503

    Seriously… thinking about quitting after day 6? Sorry if this is coming as a shock to you, but work is completely different from school.

    General rule is people need around 3 – 6 months to get situated and get the ball rolling on a new job.

    Ask questions if you don't understand something or if you get stuck… seriously who cares if they think you're dumb. Your performance review is months away. You'll have time to prove yourself. I take the opportunity to ask the dumbest questions the world 1-2 weeks into a new job and take extensive notes on the process of how something is done (because i never want to ask a question twice) since people will be more forgiving because you're new.

    If you wait like 2-3 months and then start asking dumb questions, people will start getting annoyed and your competency starts to get questioned.

    I probably went on a tangent because I'm procrastinating studying, but to wrap things up:

    • Don't quit your job after 6 days.
    • Ask questions on things you don't know, since, you know, you've only been working there for 6 days.
    • Stop being scared, accept the challenge.

    GL

    #660504
    Dog pounder1977
    Participant

    @sdguy- no she is wrong. She refers to BOTH the A/R and A/P's and virtually everything as an invoice/voucher so its hard to determine what the heck she is even talking about at times. She computes everything by hand completely disregarding the fact that we are in the digital age, instead of using hard drives she uses stacks upon stacks upon stacks of folders of the same color with no indication of what belongs where. The entire workplace is a cluster F***!!! She doesn't even like me using my excel formulas, graphs and so forth to calculate things but would rather me use a handheld calculator to add tons of numbers and thinks its humorous by mentioning that she does things “old school”.

    She is not even a CPA, CMA, nor has any background in accounting. An actual CPA had to teach her how to takeover the job back in 1997 because the previous person had quit. Most things she does wrong and I even overheard the auditor that came in last week (my first week) mention why the heck she debited her “other income” account and credited accumulated depreciation when an asset was traded via a like kind exchange? It made since to me right off the back what she did wrong and what he was explaining but it did not to her because she does not know accounting. I hate it and I am really considering quitting. Also, to make things worse, there are NO BENEFITS for this job so I have to join the Air National Guard in order to receive some form of healthcare and life insurance for me and my 2 year old son. The company does not have to use Obamacare because they are under the company size threshold. Pay is only 14.75 per hr bi weekly and NOT direct deposit. She mails a check but if she is late on payroll, I don't get paid.

    One day I will face that exam.

    #660505
    Dog pounder1977
    Participant

    @quittingCPA- Believe me, I ask a million questions when she assigns me something because I literally do not understand it. It's like I have to turn ON my brain at work to the way they do accounting. Then when it is time to go home, I have to shut OFF my brain to the way they do it and turn it back ON to the way the book teaches me when I study. Then do it all over again the next day. I will give it until the end of this month then let them know if things do not ease up. There are no benefits, and the pay isn't even direct deposit. I thought receiving a check in the mail would be a “good” thing at first because I would not spend my money as quickly but then when I started being late on my rent because SHE is behind on payroll and mail the checks a week AFTER the due period, that is when things have become a problem. I have seen too many jobs in Salt Lake City paying 18-20 per hr or 30-50,000 salary for a BA in Accounting with minimal experience AND FULL benefits that makes me feel like I am selling myself short by staying here.

    One day I will face that exam.

    #660506
    Missy
    Participant

    Two things, from someone who's been around a very long time. First, you will never find a job anywhere that follows a college textbook like a script. Second I contend that (at least in industry) you truly need to start out where you are before you can excel at reviewing financials, consulting, and those types of things. If you ever aspire to be a manager you'll be much more effective overall if you've done all the jobs that roll up to that first..

    Get the MACC and the CPA, those are great, but experience is going to be a key component of landing the type of job you're looking for.

    Licensed Massachusetts Non Reporting CPA since 2012
    Finance/Admin/HR Manager

    #660507
    Snickets
    Participant

    I would try and ask as many questions as possible while you are new there. No matter how much school you have under your belt on the job training should always be available and not make you feel like you are drowning. You should try this first and if management makes you feel stupid or incompetent then that is just garbage management. I would start looking for a new job immediately while you are still trying to figure out your currentl role so that you have a little backup in case you decide to quit.

    Your not stupid or dumb you are learning the difference between theory and practice.

    AUD 84
    FAR. 78(expired/retake 5/9/16)
    BEC 77
    REG 76

    #660508
    KBinMN
    Member

    After reading the stuff about pay and benefits, you really should be looking for other jobs. Now.

    It is a horrible sign if they are paying you late. That is not ok. And who mails checks? Can't they just hand you your check on payday?

    And anyone who has a problem with you moving to excel (from adding by adding machine) should just get out of accounting.

    #660509
    Missy
    Participant

    Well the pay/benefits is a dealbreaker with a child (may I ask why you accepted the position?)

    And while she may be doing things wrong and may certainly benefit from embracing technology, I feel that 6 days is not enough to make that assessment. She's been the accounting manager for 18 years, unless its a family business and she is family, she knows a thing or two. Her background really is irrelevant, many people with CPA's make mistakes too and lots of them.

    Regarding the warranty confusion, I believe that what is taught in school presumes that there is no 3rd party involved. If the manufacturer originally bills for then parts before deciding whether they are covered under warranty it is correct to book it as parts expense/accounts payable. If the mfr then sends a credit you should just basically offset the entry for the payable and parts. It sounds more like its the manufacturer's warranty expense than the dealership's and therefore there would be no need for you to deal with a warranty expense account at all. Hope that helps.

    Licensed Massachusetts Non Reporting CPA since 2012
    Finance/Admin/HR Manager

    #660510
    sdguy
    Participant

    Lilperk

    I never said your manager was smart. All I pointed out was the error in your original post, where you connected “invoice” with AP. That is all.

    But the bugger issue, like I mentioned, as did Mla11692, you do need to learn and start from the ground up and learn to do the grunt work before moving up to analysis and Financials.

    AUD: 83
    FAR: 77
    REG: 86
    BEC: 86

    #660511
    samfutureCPAboy
    Participant

    @lilperk09 – I've worked with a dealership for over a year and the first couple of weeks was confusing. As you said, it was different from the actual accounting stuff we learned in college. But if you stop and think and go back to basic accounting (meaning, understand what you are doing and why your doing it), then you will understand it little by little. That's what I did. I started connecting the dots until I finally understood the whole dealership process. Your only in your day 6. Don't quit just because you don't understand. Try to understand it. This is what accounting is all about. And you need to know the basics before you can move up the ladder. If its hard for you to do something like A/P & A/R, then it would be hard for you understand the more complex stuff. Hope this helps!

    CA Candidate

    F- 68, 78 (Thank you, Lord)
    A- 75 (Thank you, Lord God)
    R- 72, 75 (Thank you, Lord God Almighty)
    B- 74, 77 (Thank you, Lord God Almighty Forever!) DONE!!

    Education - Completed
    Ethics Exam - 100%
    Experience - In Progress

    “Faith is believing that God is going to take you places before you even get there.” - Matthew Barnett

    #660512
    Dog pounder1977
    Participant

    @mla11692 I accepted the position because the military screwed up on my contract forcing me to get out less than a year after I transferred to my new command. Basically, I was supposed to have 3 yrs remaining and that 3 yrs turned into 6 months. December 2014 I was notified I had to get out by April 2015. I had just moved here 8 months earlier. So I posted a quick resume on Indeed.com, got an interview and got hired with these people 3 days later. Started working part time doing small stuff from Jan 2015 until March 20th because I still had to work with the Navy.

    Then last week my time with the Navy ended and I turned full time. Everything was last minute for me and I literally had no real time to prepare. Luckily I never relied on the military for security and kept my butt in school for all 4 years. That is the only reason I accepted the job but had I known they operate the way they do, I would have easily turned the offer down. Also, today was Day 7 and I asked the accounting manager, “Where is the scanner?” She laughed and said “Ha ha I told you we are old school” I almost walked out right then and there.

    One day I will face that exam.

    #660513
    Dog pounder1977
    Participant

    @sdguy- I understand where you are coming from but if you have to look at from my point of view. I have been using nothing but technology since I can remember. To completely ignore all of those readily available resources and use “pen and paper” as a substitution is absolutely killing me and making not only her but myself work harder and not smarter.

    @KBinMN- I am working on my resume right now as I type back to you guys.

    @Snickets- I know I am far from dumb but that is how I feel at that job. I mean the place is literally pen, paper, and folders. God forbid they have a fire or a bad flood, literally everything they have ever worked for, stored, or kept would be DESTROYED because they keep everything above me in the cellar. I took some folders up there for retains and saw stacks and stacks of A/P records from 1993 to 2013. In my mind, I am thinking all that stuff should be electronically saved if it is older than 7 years, and the originals should be stored somewhere like a leased storage place or some place more appropriate.

    @samfutureCPAboy- I know I can do the job, I just cannot do it the way she works with paper and pen. For instance, today we were doing payroll and she gave me a folder full of individual employee vacation days…vacation days? She saw my dumbfounded look and asked me what was wrong I said I can't work with paper like this I would much rather create a database using microsoft office products and store the info like that. I even did a quick example of using CTRL+K in Excel showing her how I could link individual cells to another spreadsheet or wherever using that simple keyboard shortcut and she said no you have to use paper. Then she turns around and loses a paper with payroll info on it and gets mad because she can't find it and I am just sitting there looking at her running around like a chicken with its head cut off when it should have been on excel in the first place.

    One day I will face that exam.

    #660514
    Missy
    Participant

    Clearly this job is not a good fit for you and I hope you find something fabulous very soon.

    However I want to give you a piece of unsolicited advice. Even the most wonderful improvements to processes and procedures take time. You are in a position to bring this dealership into the 21st century but it won't happen 7 days into your first full time accounting position. At your next job do yourself a huge favor and watch and learn for a few months before expecting your employer to come around to what suits you best. I am basically running an office that I took over 2 months ago and while I see plenty of potential for improvements (and am in a position to implement whatever I want, whenever I want) I am still doing things the old way for now until I've been through 3-4 full monthly cycles. Even though I've been doing what I do for over 20 years, I know how important it is to build trust so changes are better received. You might consider that going forward especially since you're green in this field.

    Licensed Massachusetts Non Reporting CPA since 2012
    Finance/Admin/HR Manager

    #660515
    Anonymous
    Inactive

    I totally understand wanting to get out because of pay/benefits. However, a lot of times the way we think things “should be done” and the way management “wants things done” are very different. I worked for a multi-billion dollar corporation right out of college and was shocked by the amount of manual processes and lack of use of technology. It's not all that uncommon. If that part of the job is going to bother you to the point of quitting, you might want to reevaluate your priorities.

    #660516
    Anonymous
    Inactive

    Each business/industry has its own vernacular and often it isn't the same as accounting speak, so just take notes and do your best. As others have mentioned, if you hang in there and prove yourself, you may be able to transition the company into the digital age, although you will need to prove yourself and earn management's trust first.

    In most organizations the type of work you would like to be doing (review and prepare financial statements, conduct audits, give consultations, etc) aren't things that an entry level employee would be assigned, you will need to climb your way up the ladder to earn the right to do those highly coveted accounting projects. Most accounting work is humdrum, I should know, I've been in the accounting field for over 25 years, having worked my way up from a staff accountant to CFO, working in the insurance industry and the Dept of Defense contractor industry.

    Hang in there and do your best! Good luck.

Viewing 15 replies - 1 through 15 (of 16 total)
  • The topic ‘Screwing up Accounting BAD!!!’ is closed to new replies.