Symbotic's going down, down, down

We’re unpacking Symbotic’s big stumble — thanks to some major accounting mistakes, their stock just took a nosedive. With revenue missteps and cost issues, the company’s financials are getting a much-needed redo. Also, you'll never guess how long it took (and how much it paid) to become an accountant in 1919. Lucky for you we found the answer, check it out in Bookkeepers Binge.

In Today's Newsletter:
⚫ PwC pushes for accounting reform
⚫ AICPA announces changes at the top
⚫ SEC fines UPS over writedown
⚫ Intuit revamps QuickBooks with an AI twist

Walmart-backed Symbotic stock falls amid accounting problems

Symbotic, the AI-driven warehouse tech firm backed by Walmart, just hit a major snag. They've uncovered accounting errors, leading to a delay in their annual report and a downward revision of their current-quarter outlook. The crux of the issue? They recognized revenue prematurely and mishandled cost overruns, which skewed their financials. As a result, Symbotic warns that their recent financial statements can't be trusted and will need updates.

This financial misstep has had a major impact on Symbotic’s outlook, with the company now projecting first-quarter fiscal 2025 revenue between $480 million and $500 million, significantly lower than previous forecasts. Last year, Symbotic had reported record revenue, which drove its stock price up, but the current revelations have sent its shares into a sharp decline, leaving them down more than 55% year-to-date. (Investopedia.com)

AI's potential as the accountant's sidekick

In this forward-looking episode, Amy Hancock of Hancock & Hastings Ltd and James Goulsbra of GTA Accounting explore their predictions for how artificial intelligence will transform their practices. From leveraging ChatGPT to developing custom automation bots, they discuss why AI won't make accountants obsolete — but rather supercharge their ability to deliver value by eliminating mundane tasks. The duo examines how embracing these emerging technologies could fundamentally change how accountants work and serve their clients. (ACCA UK)

The Bookkeeper’s Binge

This is interesting: In December 1919, System: The Magazine of Business ran an ad promising to turn men into expert accountants in just six months. The reward? A salary of $3,000–$5,000 a year, which is roughly $56,000–$92,000 in today’s money. Pretty impressive for the time!

What we're applauding: For the first time in its 179-year history, Deloitte UK put a woman in charge of its audit and assurance business. Congrats Allee Bonnard!

What’s buzzing: Andrew Hunzicker of DOPE CFO recaps the recent Cannabis Conference in Denver with must-know insights for accountants in the cannabis industry.

What we’re watching: In this April 2024 TED Talk, Pete Stavros spills the secret sauce of business success: giving employees a real stake in the game by broadening stock ownership.

$36,090,000,000,000

U.S. National Debt (Treasury.gov)

• AICPA names Koziel as new CEO and president
• Ethics under scrutiny: Private equity's impact on professional services
• Spokane accountant gets prison term for $715K medical practice theft
• PwC US leader pushes for CPA licensing reform
• SEC fines UPS for delayed goodwill write-down

Intuit unveils AI-driven QuickBooks upgrades

Intuit is supercharging QuickBooks with new AI features aimed at automating routine business tasks. The company's AI assistant, Intuit Assist, can now convert conversations and documents into invoices and bills, send smart payment reminders for overdue invoices, and automatically categorize expenses — helping business owners focus on strategic work. (CFO Dive)

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The Net Gains is curated and written by Paul McCormack and edited by Bianca Prieto.