You're about ready to sign a big new client to a contract worth over $50,000. Your boss is under a lot of pressure to increase sales. He calls you into his office and tells you his job is on the line, and he asks you to include the revenue for your contract in the sales figures for the quarter that ends tomorrow. You know the contract is a sure thing but the client is out of town and cannot possibly sign by tomorrow. What do you do?

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Business

Avery York

13 June, 06:04

You're about ready to sign a big new client to a contract worth over $50,000. Your boss is under a lot of pressure to increase sales. He calls you into his office and tells you his job is on the line, and he asks you to include the revenue for your contract in the sales figures for the quarter that ends tomorrow. You know the contract is a sure thing but the client is out of town and cannot possibly sign by tomorrow. What do you do?

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Savanna · Answer 1

This is a complicated ethical dilemma because generally you wouldn't want to hurt or do things that can be negative for your boss, specially if he is a good boss. But including unrealized sales is also a bad thing.

This is not only unethical but also violates accounting principles (known as accounting fraud). This can lead to several and severe penalties, which in some cases include jail time. In this case and for this amounts that would not be the case, but other negative consequences can result.

What happens if something goes wrong and the sales is not closed. The answer is simple, you will lose your job. If other employees learn about this your credibility will suffer a lot. Everyone will believe that you always lie about your sales figures.

Personally, I would find an excuse for not including that sales contract in the current month. No choice is easy, but you should do the right and legal thing.