SBOs need to mind the GAAP.

For a Small Business Owner, few challenges are more pressing than cash flow, finance and capital.  Of these broad topics, cash flow is usually a day-to-day focus, as it must be, to keep the wheels turning.  Future matters can end up taking a back seat to today’s fires.  A common result is imperfect accounting practices.

It’s important to find time to build a foundation for your long-term financial goals.  That all starts with GAAP, which stands for Generally Accepted Accounting Principles, a USA standard that is adopted around the world.  Just like grammar sets the rules for language, GAAP provides a uniform set of standards to ensure that financial statements are accurate, consistent, and comparable to other businesses.  GAAP covers everything from how assets and liabilities are valued to how revenue is recognized and expenses are reported to try to eliminate misrepresentation or misleading statements.

You likely know there are three reports to any set of financials: balance sheet; income statement; cash flow statement.  These three reports together provide a total picture of the business.  If not reported properly under GAAP, you may hinder or delay future opportunities for financing your business.

Setting proper accounting structure early in the life of your enterprise makes for less problems down the road when the time comes for credit or investment needed to fuel the growth of your business.  Working with an SBO Coach on matters like financial planning can lighten your burden and give you confidence in the path you are on.

Explore some of the different classes, courses and services offered at SBOCoach.com to help you Mind the GAAP!