Accounting Experts

GAAP (Generally Accepted Accounting Principles)

GAAP (Generally Accepted Accounting Principles) is the standard framework of accounting rules used for financial reporting in the United States. Publicly traded companies are required to report under GAAP; many private companies must as well when seeking investment, bank financing, or preparing for acquisition.

Accrual Accounting

Accrual accounting is a method of recording revenues and expenses when they are earned or incurred — regardless of when cash actually changes hands. It provides a more accurate picture of a business's financial position than cash-basis accounting.

Cash Basis Accounting

Cash basis accounting records revenues when cash is received and expenses when cash is paid — regardless of when the underlying transaction occurred. It is the simpler of the two main accounting methods and is commonly used by small businesses and sole proprietors.

Balance Sheet

A balance sheet is a financial statement showing a company's assets, liabilities, and equity at a specific point in time. It follows the accounting equation: Assets = Liabilities + Equity. It is one of the three core financial statements, alongside the income statement and cash flow statement.

Depreciation

Depreciation is the accounting process of allocating the cost of a tangible asset (equipment, vehicles, buildings) over its useful life. Rather than expensing the full cost in the year of purchase, depreciation spreads the expense across multiple years, matching costs with the revenue the asset helps generate.

Accounts Receivable (AR)

Accounts receivable (AR) is money owed to a business by its customers for products delivered or services rendered but not yet paid for. It appears as a current asset on the balance sheet and represents the business's legal right to collect payment.

Accounts Payable (AP)

Accounts payable (AP) is money a business owes to its vendors and suppliers for goods or services received but not yet paid for. It appears as a current liability on the balance sheet and represents the business's short-term payment obligations.

Amortization

Amortization is the gradual reduction of a debt over time through regular payments, or the accounting process of expensing intangible assets (patents, trademarks, goodwill) over their useful life. The term applies to both loan repayment and asset accounting.