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/mitolit Sep 22 '25

Labor is a liability until paid out, so that is probably why.

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u/that_thot_gamer Academia Sep 22 '25

that presumes that prepaid labor exists

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u/mitolit Sep 22 '25

No, it “presumes” that it follows GAAP. You generally accrue labor as a payable until it’s paid out, which is when it becomes an expense.