Accounting Principles 101, Part 2

November 7, 2019 by OSYB Staff

Intuit QuickBooks shares that the “Financial Accounting Standards Board (FASB) establishes a set of Generally Accepted Accounting Principles (GAAP) so that businesses in the United States can maintain uniformity with their financial information”. Do keep in mind that only public companies are the only businesses required to abide by GAAP.

If you are a small business owner with a possibility of taking your company public, it would be prudent to start abiding by GAAP standards. In addition, following GAAP standards is of positive interest to investors. Whether you own a non-profit or private company, understanding and practicing GAAP is an investment towards the future. The rules cover a wide range of principles and philosophies, including:

• methods to recognize revenues, expenses, assets, and liabilities on financial statements
• guides to measure and report profits and losses
• presentation style of information on financial statements
• required information business owners that need to be included in financial statements

***

For full article: Accounting principles for small business owners

Image Credit: Deposit Photos