USA Clean up Prior Period Accounts

Oct 20, 2016
Reaction score
United States
I recently took over the Finance Department of a company that imploded ... seriously. They were two years behind in A-133 audits that I had 3 months to complete. The accounting system was/is in such bad shape that the auditors could not form an opinion. I have been here 6 months now have to complete the audit for this fiscal year. There are a lot of outstanding transactions that I would like to clean up. There is no way (well it would take more hours and people than I have) to completely go back through all the transactions and fix them.

There are deposits from prior years that are still outstanding in the bank reconciliation. There is no way to tell if they were made in error or if they are duplicates. There are ACH transactions still outstanding. How should I go about removing them/reversing them to clear them out of the bank reconciliation and off the outstanding transactions list?

I also have old receivables that again I am not sure if they were mistakes or duplicates. The previous accounting group I really don't think knew what they were doing. Should they all be cleared to doubtful accounts? Should I adjust prior period financial statements for these corrections?

Ask a Question

Want to reply to this thread or ask your own question?

You'll need to choose a username for the site, which only take a couple of moments. After that, you can post your question and our members will help you out.

Ask a Question