The Friday Lowdown ⬇️

If you're new around here, every day I share the 4-5 best accounting insights I saw in the past 24 hours.

I scroll. so you don't have to.

💎 WTF of the Day

Lowballing Your Audit Fees? Big Mistake.

A new study reveals that public companies pinching pennies on audit fees often wind up with bigger headaches. The researchers found that when firms pay rock bottom prices, they’re more likely to stumble into financial errors and restatements, costing way more than whatever they “saved” in the first place.

Companies in the bottom tier of audit spend were likelier to delay their financial reports and face a spike in negative market reactions.

💎 What’s poppin in accounting

Private Collectors Only Get 2%

The IRS thought outsourcing tax collection to private companies would rake in the big bucks. Instead, these collectors only managed to recover 2% of the $25 billion owed in 2023, that’s just $500 million.

Most unpaid taxes are still hanging out there, widening the tax gap and leaving the IRS with a huge pile to tackle. Plus, hiring these private firms often costs more than what they actually collect.

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 📊 Weekly Trend Chart

Baby Bust Sparks Big Shifts

Birth rates are dropping sharply in countries like Japan, Italy, and the U.S, leading to an aging population and a smaller workforce by 2025. This decline, averaging 1.5% in 2024, threatens economic growth and puts pressure on social services.

Businesses may struggle with talent shortages and turn to automation, while governments might need to overhaul pension and healthcare systems. Industries related to education and childcare could shrink, whereas those serving seniors might boom. The Baby Bust isn’t just numbers, it’s reshaping our future.

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