A shutdown halts processing, piles up invoices, and leaves contractors and nonprofits fronting the float.

Accounting ARC

With Liz Mason, Byron Patrick, and Donny Shimamoto

Center for Accounting Transformation

When the federal government shuts down, headlines focus on politics. But behind every furlough and frozen budget lies a deeper story—one told through accounting cycles, payroll ledgers, and cash flow reports.

In the latest episode of Accounting ARC, hosts Liz Mason, CPA; Byron Patrick, CPA.CITP, CGMA; and Donny Shimamoto, CPA.CITP, CGMA, break down what really happens when appropriations stall and the business of government grinds to a halt.

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“This is the kind of thing accountants think about,” Mason says at the start of the episode. “What’s the actual technical answer? What does a shutdown mean for accounts payable, for payroll, for the IRS? What’s really happening behind the scenes?”

Their discussion reveals a complex web of accounting impacts—from unpaid invoices and delayed reimbursements to frozen nonprofit grants and confused taxpayers.