When looking for “accountants near me” in order to handle your affairs, it is important to keep certain things in mind. One of these is to look for an accountant who follows the General Accounting Principles. The Generally Accepted Accounting Principles are a common set of accepted accounting principles, standards, and procedures that companies and their accountants strive to go by when compiling their financial statements. GAAP combines authoritative standards, which are set by policy boards, and the typically accepted ways of recording and reporting accounting information. GAAP aims to raise the clarity of communication in financial information. Read on to learn more about the GAAP and why you need to find a tax accountant who follows these principles. Call SmarTax, LLC in Pembroke Pines today for your accountant needs.
What Is GAAP
Firstly, you may need a general understanding of GAAP. The GAAP are built to make sure that there is a certain level of consistency in the financial statements of a company, which makes it easier for investors to analyze and extract information that is useful. GAAP also handles the cross-comparison of financial information across various companies. Here are some basic principles to assist in knowing the main mission and direction of the GAAP system.
- Principle of Regularity- The accountant is holding to GAAP rules and regulations as a standard
- Principle of Consistency- The same standards are applied through the reporting process to prevent errors or discrepancies, and accounts must disclose fully and explain reasons behind any changed or updated standards.
- Principle of Sincerity- The accountant aims to give a precise depiction of the financial situation of a company
- Principle of Permanence of Methods- The procedures are utilized in financial reporting remain consistent
- Principle of Non-Compensation- Negatives and positives are reported fully with transparency and without the expectation of compensation for debt
- Principle of Prudence- Fact-based financial data representation not clouded by speculation is emphasized
- Principle of Continuity- While assets are valued, it should be assumed that the business will continue to run
- Principle of Periodicity- Entries need to be distributed across the appropriate periods of time.
- Principle of Materiality/ Good Faith- Accountants need to aim for full disclosure in reports
- Principle of Utmost Good Faith- Presupposition that parties remain honest in transactions
A Tax Accountant To Trust
When looking for an “accountant near me,” you need to find one who follows GAAP, as GAAP needs to be complied with when a company distributes its financial statements outside of the company. If a corporation’s stock is traded publicly, the financial statements need to also adhere to rules that the U.S. Securities and Exchange Commission has established. There are many elements that the GAAP covers, such as revenue recognition, balance sheet item classification, and outstanding share measurements. This is why it is so essential to find a qualified accountant for your company.
Contact Us Today
SmarTax, LLC provides top tax accountants to manage your personal and business finances. If you’re looking online for “accountants near me” who follow GAAP, call SmarTax, LLC in Pembroke Pines for your tax accountant today!