Generally accepted accounting principles — or GAAP (pronounced “gap”) for short — might not be your top priority when you’re running your business. After all, you’ve hired an accountant so you wouldn’t have to deal with the nitty-gritty of your business’s accounting. Right?
Well, theoretically, yes. But knowing GAAP accounting principles, or at least the gist of them, will help you understand why your accountant does the things they do.