Industry Bookkeeping. Understanding the Four Basic GAAP Principles
Generally Accepted Accounting Principles are the common set of accounting principles. standards. and procedures that companies use to compile their financial statements authentic canada goose freestyle vest women outlet . GAAP and the ever-changing, cheap canada goose toronto 2015 . often-confusing world of accounting standards is important for business owners to understand canada goose freestyle vest women outlet . When you hire a virtual bookkeeper and part-time financial controller. the burden of understanding all the nuances of GAAP accounting standards falls off your shoulders. (After all canada goose freestyle vest women outlet sale . we know you have enough to worry about. ) But. understanding the importance of GAAP is critical in hiring the right virtual bookkeeper and also in being able to recognize if something is not right with your books if you’re using an in-house bookkeeping staff, canada goose trillium parka sporting life 2015 .
Accountants spend years studying canada goose freestyle vest women outlet . memorizing and learning GAAP standards purchase canada goose freestyle vest women outlet . We’re seeking to give you some of the basics so that you’ll be able to recognize if your on-staff bookkeeper is not adhering to GAAP standards canada goose freestyle vest women outlet . and you’ll understand the importance of GAAP if you’re shopping for a virtual bookkeeper.
If your bookkeeper follows just the four basic GAAP principles. you can be reasonably assured of accurate bookkeeping. which can lead to better financial decisions for your company canada goose freestyle vest women outlet discount .
1. Cost principle – All values should be listed at the price
paid. not market value. for more accurate records canada goose citadel parka uk outlet .
2 canada goose jackets use real fur sales . Revenue principle – A main tenet of accrual-based
accounting. the revenue principle states that revenue must be reported when it is earned. not when it is received canada goose expedition parka london cheap .
3. Matching principle – One of the basic rules of accurate
accounting mens canada goose winter jackets sales , canada goose womens winter coats outlet store . expenses must be matched with revenue in balance sheets canada goose freestyle vest women outlet . The expense is included when the product is purchased.
4. Disclosure principle – This assures the completeness of a
company’s financial statements. by mandating that all relevant information to make sound financial forecasts and judgments about a company’s finances must be included in the financial statements. as long as the cost to obtain that information is reasonable.