GAAP Basics for Startups
Written by Nirmala Murugesan
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.
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About the author
Nirmala MurugesanCA, CPAPartner, Accounting
CA and CPA with 20+ years across U.S. GAAP, IFRS, and cross-border entity accounting. Leads accounting and controllership at StartupCFO: clean close, audit-ready books, and multi-entity structures for venture-backed startups.
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