Kreigler Automation has some explaining to do after their fourth quarter results were released Tuesday with some shareholders critical as to why the company booked some revenues prematurely. This goes against the accounting practices they had implemented in the past but went ahead and assured the disappointed investors that this has ‘never happened before’ and ‘hopefully never will again’.
“Normally revenue is only counted in the books when we provide delivery of the product,” said head of accounting Carol Charles. “But this year we’re not exactly sure what happened. We were just booking so many orders and it was happening so fast. We tried to have better controls in place but before we knew it we had booked all this revenue. It’s not something you can undo either we just have to wait until we’re ready to go for our next earnings announcement.”
CPA Michael VanDerSloot had more to add. “Sometimes a newer company has issues like these. Kreigler is only a 20 year-old company and stuff like is totally normal. It happens to companies all the time and our firm will continue to consult them. Hopefully our highly experienced staff can train them well so they only book revenue once we’re ready.”