Accounting Services | The Analytical Accountant
Big picture, Accounting can be divided into two aspects: Financial Accounting, the centerpiece of which is Compliance and Managerial Accounting. Regarding compliance, whether your accountant is preparing financial statements or tax forms, there are certain principles, laws, rules or regulations that need to be followed to ensure that the statements or forms reflect the proper accounting treatment. Some common examples include revenue recognition for accrual-basis businesses, inventory cost flow assumptions (average cost, LIFO, FIFO) or the deductibility of certain expenses for tax purposes vs. expenses that are classified on a Profit & Loss Statement-there are differences. Being an Accountant means more than just knowing QuickBooks techniques. Your Accountant should know the proper principles to apply to ensure that your statements reflect Generally Accepted Accounting Principles or GAAP. I beat the details because I respect the value of good accounting.
What Is Compliance?
- Adhering to laws, regulations and accepted principles
- Maintaining business standards and proper protocols
- Regulatory oversight
- Codes of conduct
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The Analytical Accountant
Mike Faremouth, Owner/Principal