Most accountants are familiar with the term S.A.L.Y. (same as last year). It's an indicator that this item doesn't necessarily need to be looked at because, at a minimum, it's the same as the previous year, if not for numerous prior years.
For example, the cost basis of the common stock of an S Corporation would be marked as S.A.L.Y. after the year of inception forward unless there was some change. With a simple compilation, there would be no need to show the backup for the stock basis since that's typically in the permanent file and the current year's work papers show more of the current year's activity.
If you think about it, those S.A.L.Y. amounts also make our accounting work a little easier because it's one less account that needs to be analyzed. It takes less effort because nothing has changed, sometimes for years and years.
While that might be helpful in our accounting work, for many accountants, S.A.L.Y. is also how they live their lives. Day after day, year after year, they are in a rinse and repeat cycle with their professional careers and their personal lives.
This week on The CPA MOMS Podcast we discuss why S.A.L.Y. can be a problem and what you can do instead.
You can read the full show notes HERE
If you would like help with S.A.L.Y. in your career or in your personal life, you can schedule a FREE 20-minute coaching session HERE
