05/21/2025

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! 

💸 Profit & Loss Report

Senate unanimously passed the No Tax on Tips Act, a bill that exempts cash tips reported to employers from income tax. Introduced by Sen. Jacky Rosen, whose state has the biggest share of tipped workers, the bill allows workers earning $160,000 or less in 2025 to deduct up to $25,000 in tips from taxable income, with adjustments for inflation.

The bill fulfills a 2023 campaign promise by Donald Trump, gaining support across party lines, calling its passage “very close to 100%.” While others supported the measure as worker-focused relief, critics note it only applies to reported cash tips, excluding digital tips and broader wage reforms. The bill now moves to the House of Representatives for approval.

Source: New York Daily News

💎 Rare Accounting Oddities

Did you know that accountants used IBM’s first mass-produced computer for automating employee payroll? That’s right — accounting pros were already feeding punch cards into machines to streamline ledgers and boost efficiency. 

This bold, time-saving revolutionary move helped shape the foundation of modern financial accounting, marking a change from manual bookkeeping to automated data processing.

So the next time you boot up your accounting software, give a silent nod to all payroll rebels of the ‘50s who proved calculators are just the beginning of something revolutionary.

Let’s be real for a second: You can solve variance faster than your morning espresso hits, but when someone drops words like Stark Law, HIPAA, or payer mix variance, do you suddenly feel like you've wandered into a medical drama?

Wisdify’s Healthcare Accounting Series offers Continuing Professional Education (CPE) courses designed specifically for accountants looking to build healthcare expertise 

Healthcare Budgeting and Forecasting (3.0 CPEs, 11 lessons) equips learners with skills to develop healthcare budgets, build forecasting techniques, and manage costs effectively. Lessons on budgeting methodologies, forecasting patient volumes, analyzing budget variances, and implementing financial planning to healthcare operations are discussed. 

Financial Statement Analysis in Healthcare (2.5 CPEs, 15 lessons) catches on interpreting healthcare-specific financial statements. Key financial ratios, revenue recognition challenges, and organizational risk assessment will be discussed. Financial health evaluation, and discussing regulatory impacts on profitability gives useful knowledge on healthcare compliance demands. 

Ready to flex your accounting muscles in healthcare finance — without needing a JD or an MD?

Then scrub in, CPA. Your healthcare accounting glow-up starts today!

Source: Wisdify

📝 Journaling Insider

SEC Chair Paul Atkins said the agency could take over PCAOB’s auditor oversight duties if Congress dissolves the board as part of cost-cutting. While the SEC currently lacks the funding, Atkins noted the proposed legislation includes provisions for transferring PCAOB resources.

However, experts argue that dissolving would harm audit quality and investor protection. The PCAOB’s specialized focus which the SEC lacks might disrupt regulatory continuity, and that recreating its functions could take years. The SEC also wouldn't retain PCAOB’s $400 million funding source, limiting its capacity to absorb various responsibilities.

Source: Thomson Reuters

💰 Making Cents of Accounting

#StraightLineDepression📉😟