Accounting Services: The Deal is On! (NASDAQ: GRPN)

NEW YORK - The deal must have been on for Groupon when they hired their accountants. The company recently reduced net income by over $20 million and revenues. The company under reserved for products being returned. The company has had accounting issues in the past. The auditors also found material weaknesses in their internal controls. Groupon sells coupons to customers however a lot of their money has come from aggressive advertising which drives site traffic and their site has not been able to sustain a strong amount of traffic. The company has also struggled with competitor sites rising up essentially every day. The company has high expenses and low profit. The stock is also at near $10 billion and it has a precarious financial position.

Next time Groupon may want to choose accountants who are not as cheap.