I am trying to find out if this CPA help my business partner take advantage of me.
I am the 49% owner, the other partner is the 51%. I received very little accounting records the first few years, but started to think I am getting cheated.. This partnership lasted 10 years
1) My partner was taking out more than his 51% and under paying me for years. The K1's would show how much I earned but the amount I received was less than the earned amount (I understand this part) but many of the years what I received was less than the amount the K1 show was dispersed. The CPA coded these loans as AR which built up to 70K over the years. As I started to demand my $ the 70k AR was reclassified as distribution to him.
2) My partner bought 4k of computers that were not for our LLC, the accountant knew this, the accounts staff sent me emails stating they knew this yet the accountant still classified them as business expense loosing me about 2k I income.
3) My partner paid off a 20K Amer Exp bill and the accountant classified them as office supplies, we have never head any such supplies before and never has any Amer Exp bills in the past. I received an email from the CPA staff stating they knew the 20k Amer Exp bill was for one of this guys other companies, yet they still deducted it as business related cheating me out of 10K.
4) The book keeper at the CPA's office sent me a spread sheet showing I was under paid 30K over the 10 years. I called the CPA asking for an accurate amount I am owed he says the max the major partner owes me is 5-10K after factoring in all the factors??? He said were about 50K of expenses where the other guy paid for bills that help out LLC (like he wrote 1 check to the accountant for several companies accounting work). I said but the expenses still should be listed in the GL no matter if Santa Clause paid the bill or not and there are not that much expenses!
The CPA told me when you are a minority partner you are SOL and at the mercy of the major partner, also the accountant has no responsibility to the other partners. I understand that accountants should not be liable if someone is cheating and they have no knowledge of it but when the accountant knows the major partner is embezzling money I feel the CPA is responsible.
What responsibility does the CPA have?
I am the 49% owner, the other partner is the 51%. I received very little accounting records the first few years, but started to think I am getting cheated.. This partnership lasted 10 years
1) My partner was taking out more than his 51% and under paying me for years. The K1's would show how much I earned but the amount I received was less than the earned amount (I understand this part) but many of the years what I received was less than the amount the K1 show was dispersed. The CPA coded these loans as AR which built up to 70K over the years. As I started to demand my $ the 70k AR was reclassified as distribution to him.
2) My partner bought 4k of computers that were not for our LLC, the accountant knew this, the accounts staff sent me emails stating they knew this yet the accountant still classified them as business expense loosing me about 2k I income.
3) My partner paid off a 20K Amer Exp bill and the accountant classified them as office supplies, we have never head any such supplies before and never has any Amer Exp bills in the past. I received an email from the CPA staff stating they knew the 20k Amer Exp bill was for one of this guys other companies, yet they still deducted it as business related cheating me out of 10K.
4) The book keeper at the CPA's office sent me a spread sheet showing I was under paid 30K over the 10 years. I called the CPA asking for an accurate amount I am owed he says the max the major partner owes me is 5-10K after factoring in all the factors??? He said were about 50K of expenses where the other guy paid for bills that help out LLC (like he wrote 1 check to the accountant for several companies accounting work). I said but the expenses still should be listed in the GL no matter if Santa Clause paid the bill or not and there are not that much expenses!
The CPA told me when you are a minority partner you are SOL and at the mercy of the major partner, also the accountant has no responsibility to the other partners. I understand that accountants should not be liable if someone is cheating and they have no knowledge of it but when the accountant knows the major partner is embezzling money I feel the CPA is responsible.
What responsibility does the CPA have?
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