06/26/2025

Well, hi there! Sit back, enjoy, and relax as you’re currently on the Daily Accrual.

Every day, I sift through the accounting noise so you don’t have to. I share to you the most relevant, juicy accounting insights that really matter – nothing phony, just some good, accounting testimony! 

📊 Accountants Gone WILD

The IRS is under a 2026 filing season crisis due to over 25% staffing cuts, workforce layoffs alongside the proposed 20% budget cut (37% with IRA losses). Taxpayer Services lost 21% of employees, call handling threats, return processing, taxpayer support. Unless the hiring freeze is lifted and necessary staff are hired year-end, the IRS won’t be equipped to handle demand surge if the “One Big Beautiful Bill” passes, adding retroactive 2025 tax changes.

A 1.4 million ERC backlog, worsened by poor communication for disallowed claims and refund delays continues to be reported. 387,000 unresolved identity theft cases are averaging 20 months, disproportionately affecting low-income taxpayers relying on refunds. Without immediate funding and staffing interventions, NTA warns how taxpayers in 2026 will face severe service delays, refund disruptions, and further erosion of trust in the IRS’s ability to deliver.

Source: Journal of Accountancy

🧮 COOL AF! (Cool Accounting Facts!)

Meet William Seward Burroughs, the frustrated 1890s bank clerk who got so exhausted from tallying endless ledgers he invented the first successful adding machine that could print results. 

No more scribbling numbers or accidental double entries. His machine came with a nine-column keyboard, a mechanical governor, and built-in printer—a game-changer for banks back then.

By 1890, his adding machine was employed across banks worldwide, earning him the prestigious John Scott Medal for scientific innovation, helping pioneer the computing industry. 

So the next time your excel spreadsheet crashes, just be glad you don’t have to manually crank the adding machine by hand!

You’ve mastered ASC 606 like a pro, and reconcile statements blindfolded. Throw in acronyms like HIPAA, HITECH, and Stark Law, and suddenly it feels like a whole new language.

Wisdify’s Healthcare Accounting Series is designed for accountants confident with GAAP but feel confused when navigating healthcare’s legal, regulatory, and financial complexities. 

Value-Based Care & Population Health Accounting equips accountants to handle financial impact of healthcare’s shift from fee-for-service to value-based care, covering essential metrics like TCOC, MLR, PMPM, risk-sharing agreements, revenue recognition under ASC 606 and IFRS 15, financial reporting for population health initiatives. Audit readines, integrating considerations into financial performance analysis will be emphasized.

Accounting for Healthcare Technology Investments dives into accounting challenges of healthcare technology investments, teaching learners how to assess ROI, NPV, IRR, and payback periods for assets like EHR systems, AI tools, telehealth, SaaS platforms. Differentiation between capitalizable and non-capitalizable costs, proper amortization methods, reporting impacts on financial statements, balance sheets, and cash flows will be taught.

Courses are made with bite-sized video lessons, quizzes, and final assessment, designed to make complex topics accessible for professionals considering healthcare accounting roles within organizations.

Start learning with Wisdify today — before your client subscribes to another healthcare-accounting product you’ll have to figure out how to amortize.

Source: Wisdify

🔢Numbers Don’t Lie

PCAOB fined Dutch affiliates of Deloitte, PwC, EY $8.5 million for widespread exam cheating and serious quality control failures in 2018 to 2022. The misconduct involved hundreds of employees, including partners sharing answers during mandatory training on topics like audit standards, independence, and ethics. Answer sharing occurred through electronic communications and joint test-taking, breaking various accounting compliance.

PCAOB recorded a $25 million fine against KPMG Netherlands in 2024 for similar cheating misconduct. Deloitte and PwC received a $3 million fine, while EY was fined $2.5 million along with formal censures requiring strict quality control improvements. PCAOB discussed measures together with the Dutch Authority on Financial Markets (AFM) to prevent future violations. Fines were reduced due to “extraordinary cooperation” which includes remedial actions.

Source: CPA Practice Advisor 

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