A reliable USA Based Bookkeeping helps companies keep accurate records for a range of purposes. These include analyzing business activities, seeking finance, attracting investors, lodging, and paying tax.
RAYVAT ACCOUNTING is a name that has always been trusted by USA-based bookkeeping companies, when it comes to outsourcing services like Bookkeeping, Payroll, or Tax services. And one of the reasons for this trust placed upon us is that we are always aware of the latest trends and changes in U.s Accounting Systems the market situation. When the world is racing ahead at breakneck speed, it becomes redundant to hold on to earlier bookkeeping methods, even if the organization is small.
Rules For USA Based Bookkeeping
Each country has its own set of accounting rules that go a long way in determining how the outsourced bookkeepers and accountants will function. For instance, the U.S. Securities and Exchange Commission (SEC) follow GAAP (“generally accepted accounting principles”). GAAP is a set of accounting principles, detailed rules and standards, and generally accepted practices used by the accountants throughout to prepare transaction lists; financial statements, such as balance sheets, income statements, and cash flow statements.
These principles are followed while making a note of financial data; day to day transactions. These do not allow a company to withhold any financial information from the investors and company stakeholders.
Then outsourcing accounting firms in the United States, understanding GAAP becomes of prime importance as these principles determine the rules of accounting and recording financial data. Therefore, companies seek accounting and bookkeeping officials who are experts in GAAP to avoid any adverse outcomes. Companies like Enron have been suffering from negative consequences due to their attempt to create an illusion of financial stability.
Two Authoritative Bodies that Determine the Ways the Accountants in the States have to Function are:
1. FASB (Financial Accounting Standards Board): It is the most important body in the private sector responsible for keeping the accountants up to date with the latest GAAP guidelines.
2. SEC (the federal Securities and Exchange Commission): SEC draws authority from federal securities laws and exercises power over companies whose shares are publicly traded.
Thus accountants and bookkeepers in the USA need to keep up with the guidelines of these bodies in their respective public and private sectors.
In order to set up one’s own bookkeeping system, it becomes necessary to be well versed with the principles of the region that go into shaping the accounts and bookkeeping industry there. Therefore in the United States, GAAP becomes the set of those principles, and FASB and SEC become the impostors of the same.
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