We at B&J Bookkeeping are always looking to help our clients help themselves. One such practice is that of GAAP. Below, we will tell you more about GAAP for small business bookkeeping.
1. What is GAAP?
GAAP stands for generally accepted accounting principles. It refers to a common set of accounting standards and procedures that have been laid out by the Financial Accounting Standards Board. Public companies located in the United States are required to adhere to GAAP as their accountants develop their financial statements. However, they are also good practice for those non-public small businesses. Especially those who want to keep up with their competitors.
2. What Documents Do I Need for GAAP
GAAP may include a number of financial and accounting data such as the following:
- Total assets and liabilities.
- Equity in currently owned properties.
- Current and projected revenue.
- Hedging and derivatives.
- Fair value and foreign currency.
- Current leases.
- Nonmonetary transactions.
- Payroll information.
- Past and future taxes.
- Any industry specific expenses such as travel, inventory, storage, etc.
The Goal of GAAP for Small Businesses
The goal of GAAP is to ensure a your business has its financial statements complete, consistent, and have the ability to stand up to an audit. GAAP also makes it easier for potential investors to analyze useful information from your business’s documents. However, GAAP is a complex practice even if your business is not required to adhere to it. This is why we recommend procuring the services of a professional, qualified bookkeeper in your area to conduct this work to do it properly and accurately.
You may learn more about the complexities of GAAP from the CFA Institute.
Get GAAP for Small Business Bookkeeping with B&J Services in Houston
Finally, we are focused on helping your Houston-based small to mid-sized business use GAAP practices to help make the most of their money. Our bookkeeping services are professional, fairly priced, and help you properly perform any and all GAAP tasks you need. Feel free to contact our office to learn more on how we can help with your GAAP and all bookkeeping needs.