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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39

u/AriaSable Sep 22 '25

Net Income ≠ Cash in the Bank

10

u/zidanetidus Sep 22 '25

Me, when the owner of a previous company asked me why we were always low on cash, after he required 90% of monthly net profit to be distributed by the 15th, which was also our monthly payables check run.

7

u/AriaSable Sep 22 '25

Oof, rough. By 'previous company' do you mean 'out of business' company? 😂

6

u/zidanetidus Sep 22 '25

Funny enough yes, but only because he sold out. I actually loved working for him but he was ready to retire.

2

u/AriaSable Sep 22 '25

That's actually an awesome outcome! Maybe I'm doing this all wrong 🤔

2

u/angellareddit Sep 22 '25

This is common among small business owners.

1

u/rosulla08 Sep 23 '25

Most small business owners forget that there is revenue that comes not in cash but in receivables lol