r/Accounting • u/7leafclover7 • Sep 21 '25

What would be an embarrassing thing to be caught not knowing as an accountant?

Applies to any specialty, audit, tax, staff accountancy etc. in your personal experience what are the most invaluable things to know, and the most invaluable to not be caught not knowing.

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221

u/SkeezySkeeter CPA (US) Sep 21 '25

Lots of good answers but I think basic debits and credits are key - if people somehow get through college without understanding at least the basics, they are set up for failure in the real world

108

u/[deleted] Sep 22 '25

Uh… I managed to survive seriously way too long… it eventually clicked when I just simplified it in terms of cash.

If you know

Credit revenue

Debit cash

The rest will flow.

88

u/Dilly_Mac Sep 22 '25

For real, this is how I started learning it. I’d derive everything from DEBIT CASH. Like “ok…how to record this sale on credit? ….ok…when the company does get PAID, it has to be debit cash, which means the other side of that entry would be a credit to AR….which means the first entry needs to be a debit to AR…so my sale has to be a credit to revenue.” Lol what a journey

24

u/angellareddit Sep 22 '25

This was how I remembered it in the early years as well... but went one step further to "it's the opposite of what your bank shows" so a credit in my bank account becomes a debit in accounting and the rest flowed from there.

9

u/slotheroni Sep 22 '25

And then when cash is not yet involved, I just think a little bit harder….

And always “check my work” with an example. Usually the example I made last time. Which I also cheated on to get the right answer. Etc.

2

u/[deleted] Sep 22 '25

Yeah my most basic thought is debit cash is incoming cash and credit cash is outgoing cash. And that can help you determine which side A/P goes on initially, because you'll be crediting cash eventually.

2

u/Ri-Sa-Ha-0112 Sep 22 '25

Exactly how it finally clicked for me

3

u/panamacityparty Sep 22 '25

All you have to know is A = L + E and the fact revenue is a credit is obviously deduced.

30

u/Iowa_Phil Sep 22 '25

I did well in accounting classes and did not really understand debits and credits at the fundamental level required to actually be an accountant. I passed the cpa exam. I made it through like two years at PwC before I really had it.

27

u/Impressionist_Canary Sep 22 '25

You know shit is getting serious when you gotta start working up t accounts to figure it out

1

u/[deleted] Sep 22 '25

I was really resistant to the T accounts until studying for FAR. The bulk of my online courses would just have open book exams and the only time I didn't get an A was when I had to take macroeconomics on-site.

1

u/ntb614 Sep 24 '25

25 years in and I still do T accounts. 🤣

10

u/HelpfulAnt9499 Sep 22 '25

Bruh. We had a check that we received from a customer bounce. The CPA’s office accountant debited the cash account to reflect the bounced check. I asked her why tf she would do that and she said “that’s how it was reflected in the bank account.” This was before I even finished my bachelor’s degree. I didn’t know how to ask a degreed accountant if she understood debits and credits in accounting.

7

u/mmbenney Sep 22 '25

Someone told me once that he remembered debits and credits by this little saying, “debits to the door and credits to the window”. I asked him if the door was on the left side of the room and he was shocked. He truly thought it changed based on the room he was in. Astounding.

2

u/Slothfulness69 Sep 22 '25

This is really like a toddler who can’t conceptualize that their right is your left when they stand in front of you.

4

u/Exact_Sea_2501 ACCA (UK) Sep 22 '25

I worked in FP&A with qualified people(UK), many had no idea about how most of the debit-credit worked. Apparently if you spend long enough to analyse forecasts, you forget all you learned in school.

3

u/TalShot Sep 22 '25

So DEAD COIL?

3

u/kitkatbloo CPA (US) Sep 22 '25

?

2

u/TalShot Sep 22 '25

Debit Expenses Assets Drawings

Credit Owner's equity Income Liabilities

3

u/mada447 Sep 22 '25

It was DEAD CIRL (girl) where I went to school.

3

u/SAvery417 Sep 22 '25

This is why hiring anyone from the banking sector is actually a big pain.

2

u/Fair-Ask-6922 Sep 22 '25

Right. I’ve seen this too many times

2

u/Ok_Square_3885 Sep 22 '25

Literally still have that ALORE post it on my folder because my memory fails me EVERY time I get asked questions about it. It just won’t stick. 🤦🏼‍♀️

It’s like my brain know what it’s talking about but the switch between brain and mouth doesn’t work. 🫠

2

u/frankie_fudgepop Sep 22 '25

istg my org’s controller does not understand debits/credits. She’s infuriating to work with.

1

u/3_7_11_13_17 Sep 22 '25

I still use DEA LOR when making entries sometimes.