Startup Accounting
GAAP Basics for Startups
Collated by Aparna Devalla, CPA
Curated by Rubric Financial
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What GAAP Means and Why Startups Need It
- GAAP (Generally Accepted Accounting Principles) is the standard framework for financial reporting in the United States, established by the FASB.
- Investors, lenders, and acquirers expect GAAP-compliant financials before committing capital or closing deals.
- Adopting GAAP early prevents costly restatements later when you raise a Series A or pursue an audit.
- GAAP ensures consistency and comparability, making it easier to benchmark your startup against industry peers.
Related Resources
Startup Accounting
Month-End Close for Startups
Learn how to run an efficient month-end close process that keeps your books accurate and your financial reporting timely.
Startup AccountingCapEx vs OpEx: Expense Classification
When to capitalize vs expense costs — and how misclassification affects your financials and taxes.
Startup AccountingAccounts Payable & Vendor Management
Set up AP workflows, negotiate payment terms, and manage vendor relationships to optimize cash flow.
