04/23/2025

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 U.S. Department of Education will resume collections on defaulted federal student loans starting May 5, 2025, ending a pause since March 2020. Over 5 million borrowers are in default, with nearly 10 million expected soon, and the Department will restart Treasury offsets, wage orders, guarantee agency collections to recover part of the $1.6 trillion federal loan debt.

The Department is launching a nationwide outreach campaign, urging borrowers to contact the Default Resolution Group, enroll in income-driven repayment (IDR) plans, or get loan rehabilitation. With only 38% of borrowers current on payments and nearly 1.9 million stuck in processing delays, new tools like simplified IDR enrollment help to support repayment, not loan forgiveness, which the US Department states is not an option.

Source: US Department of Education

💰 Making Cents of Accounting

#EscapedTheBig4💨🏃‍➡️

📺 Advertisement

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Source: Wisdify

💸 Profit & Loss Report

On April 22, 2025, the PCAOB fined Adeptus Partners LLC $75,000 and managing partner Howard Krant $50,000 for violating audit standards during the 2020 and 2021 audits of Blockchain of Things Inc. and Applied UV Inc. Krant failed to supervise auditing teams, review workpapers, and obtain sufficient evidence, while their quality control systems were lacking.

The PCAOB discovered false review signatures, unverified workpapers, and missing documentation, leading to incomplete, improper auditing. Krant was suspended for one year, and Adeptus must hire an independent consultant when improving quality control practices, with the PCAOB emphasizing the importance of accountability to protect investors.

Source: CPA Practice Advisor

💎 Rare Accounting Oddities

Did you know the average lifespan of a tax rule in the U.S. is just five years? Every half-decade, the tax code gets a makeover — new deductions, credit rules making seasoned accountants feel like they're learning something new.

The federal tax code has ballooned to about 75,000 pages, nearly tripling since the 1970s. Just like navigating a maze with a newly established set of financial directions every few years. 

So, if you're an accountant, tax preparer, or just someone trying your way on finances, staying updated isn't just helpful — it's a basic necessity.