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US GAAP

US GAAP is the set of accounting rules US companies use when they publish financial statements. A brand-new LLC with one founder does not file GAAP statements with the IRS. The tax return follows tax rules, which are not the same as GAAP.

Why it still matters

Banks, marketplaces, and a future investor will ask for a profit and loss and a balance sheet that tie to the bank. GAAP is the language those readers expect: revenue when it is earned, expenses when they are incurred, and a balance sheet that still balances.

Cash books are allowed to start

Many small LLCs keep cash-basis books in the first year and still file a correct return. If you later need accrual statements, the bookkeeping service can recast the year. We will not pretend a CSV import is an audit.

Related: US taxation ยท Bookkeeping