GAAP (Generally Accepted Accounting Principles)

Definition

GAAP is the set of standardized accounting rules that businesses in the U.S. follow for financial reporting. It ensures consistency so that financial statements from different companies are comparable. If you're applying for a loan, seeking investors, or getting audited, your financials need to be GAAP-compliant. Your bookkeeper handles the day-to-day compliance; your CPA ensures the big picture.