Accounting
GAAP
Quick definition
Generally Accepted Accounting Principles: the US accounting standard.
GAAP is the common set of rules governing US financial reporting, set by the FASB. Most investors and all auditors expect GAAP-compliant financials. Non-GAAP adjustments (like backing out SBC) are common in investor reporting but must be clearly labeled.
See this in action
Insights, guides, and tools where GAAP shows up.
Frequently asked questions
- What is GAAP?
- GAAP is the common set of rules governing US financial reporting, set by the FASB. Most investors and all auditors expect GAAP-compliant financials. Non-GAAP adjustments (like backing out SBC) are common in investor reporting but must be clearly labeled.
- Why is GAAP important for startups?
- GAAP is a accounting concept that matters for startup founders because it shows up in fundraising readiness, financial decision-making, and operational discipline at the stage where mistakes are expensive to undo. Founders who understand it are better prepared for diligence, board meetings, and investor conversations.
- What category does GAAP belong to?
- GAAP is a Accounting term in the StartupCFO finance glossary, alongside other accounting concepts that founders, CFOs, and accountants use in startup operations and reporting.
- Where can I learn more about GAAP?
- Beyond this definition, see the related accounting terms below, or explore StartupCFO's insights and tools that put GAAP in context. For specific situations, talk to a fractional CFO who can walk through your numbers.
Want your books handled properly?
A bookkeeper and CPA who work as one team, with your monthly close done and your ledger ready for diligence.
No spam, ever. If the download doesn't start, email us.
Or talk it through:
