The American Institute of CPAs recently released a new financial reporting framework for private companies. Some feel that in certain circumstances it may be an easy to use, useful tool that can provide owners and lenders financial statements on a consistent basis.
The accounting rules used to put together the framework are comprehensive and were developed after a rigorous process, although they are not U.S. GAAP (Generally Accepted Accounting Principles). GAAP is the nation’s highest standard of accounting rules, generally set by the Financial Accounting Standards Board.
Whether or not smaller private companies and banks will accept the Framework is currently being put to the test. There remains a great deal of uncertainty as well as a great deal of interest. The main problem that the Framework tries to resolve, is that small and closely held companies often don’t need the types of standards that large and public companies need. Smaller, more entrepreneurial organizations mainly deal with bankers, not outside investors and bondholders, for their financial needs. Many of those companies believe that GAAP is overly complex and too difficult and expensive to implement.
Accountants for small business can help eliminate the stress and time it takes for the entrepreneur to handle the complexity of what’s involved in the financial aspect of the business, so you don’t have to worry about the Framework or the GAAP. While there may be a great temptation to assume if you’re the business owner, you can handle all of the accounting functions yourself, the truth is, hiring accountants for small business is an investment that can actually save money, and over time, pay for itself.
If you’re a busy entrepreneur trying to grow your business, do you really want to spend time trying to get familiar with the complex GAAP, or the new Framework for reporting?
Accountants for small business can help manage day-to-day financial transactions to ensure everything is compliant with current laws, find cost savings with vendors, employees and office operations, prepare those financial reports as well as tax preparation, and even make plans for changes in business expenses to ensure additional costs don’t cause financial hardship.
If you aren’t sure where to start, GoodAccountants.com can help find top qualified accountants in your area in just seconds, with no cost or obligation to you or your business.