05/06/2025

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! 

📝 Journaling Insider

The IRS reduced its workforce by 11% through a mix of voluntary departures under the Deferred Resignation Program (4,128 employees) and probationary workers termination (7,315 employees). Most laid-off employees had less than one year of service and lacked documented performance issues, leading to court-ordered reinstatements, further administrative leave.

The cuts heavily affected key IRS units like Taxpayer Services, IT, and Small Business/Self Employed, with Revenue Agents making up 31% of those. A second round of the DRP approved 13,124 more resignations, with employee shrinkage projections up to 60,000–70,000 by year-end, raising concerns to serve taxpayers and enforce tax laws nationwide.

Source: CPA Practice Advisor 

💰 Making Cents of Accounting

#WorkLifeBalance💆🏻‍♀️🥴

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Wisdify has launched a new Healthcare Accounting CPE course series designed for CPAs who feel less sure about navigating legal, regulatory compliance in the healthcare industry. 

The first available course, Healthcare Accounting & Compliance (CPE: 1.5), makes complicated healthcare topics like HIPAA, HITECH, and Stark Law accessible by discussing their financial implications in a CPA-friendly way — minus the legal jargon.

Cost Accounting in Healthcare (CPE: 2.5), which focuses on allocating costs, improving profitability, and strategic financial decision-making using healthcare-specific examples. 

Lastly, Revenue Recognition in Healthcare (CPE: 1.5), which tackles ASC 606, bundled payments, capitation, and revenue estimation through real-world case studies examples.

These professional courses are part of Wisdify’s all-access subscription, helping CPAs build their expertise in the demanding healthcare industry with confidence, and practical instruction.

Source: Wisdify

💸 Profit & Loss Report

Donald Trump’s public vow to revoke Harvard University’s tax-exempt status has sparked legal alarm, as experts warn it could violate laws barring presidential influence over IRS actions. Legal scholars say the IRS has the authority to act, but Trump’s politically charged statement could be used as evidence of retaliatory intent, weakening any case against Harvard.

Senators Warren and Markey have called for an investigation into potential misuse of IRS power, while Harvard pledged to fight any action, citing the threat to its educational mission. Legal experts agree the IRS would face a lengthy, uphill legal battle, and warn that politicizing tax-exempt status could have long-term consequences for all higher education institutions.

Source: Mass Live

💎 Rare Accounting Oddities

Do you wonder how a lease could make you an owner without really owning anything? In accounting, that's where capital lease & operating lease goes in.

A capital lease pretends you're the owner of an asset, showing up on your balance sheet, complete with depreciation and interests. Meanwhile, an operating lease keeps things low-key by staying off your documents entirely. 

So, whether you’re faking it till you make it with a capital lease or going incognito with an operating lease, understanding the difference is key to navigating your accounting with ease!