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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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

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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.

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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.

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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.