GAAP Accounting

GAAP (Generally Accepted Accounting Principles) is a standardized set of accounting rules, standards, and procedures used in the United States to ensure consistency, transparency, and comparability in financial reporting. It provides a framework for preparing financial statements, such as balance sheets and income statements, to accurately represent a company's financial position and performance. While not a technology itself, understanding GAAP is crucial for developers working on financial software, fintech applications, or enterprise systems that handle accounting data.

Also known as: Generally Accepted Accounting Principles, U.S. GAAP, GAAP standards, Accounting principles, Financial reporting standards

Why learn GAAP Accounting?

Developers should learn GAAP accounting when building or maintaining financial applications, such as accounting software, ERP systems, or fintech platforms, to ensure compliance with legal and regulatory requirements. It is essential for accurately modeling financial transactions, generating reports, and integrating with accounting systems, particularly in industries like banking, insurance, or e-commerce where financial data integrity is critical. Knowledge of GAAP helps in designing databases, APIs, and user interfaces that align with standard accounting practices.

Learning Resources

• docs: FASB GAAP Standards
• tutorial: GAAP Accounting Tutorial on Investopedia
• course: GAAP Accounting Course on Coursera
• video: GAAP Explained Video by Accounting Stuff