Bookkeepers: G.A.A.P. explained simply (generally accepted accounting principles)

Generally accepted accounting principles (GAAP) seem confusing, but in this video I break them down and let you know how they relate to your bookkeeping business. A lot of these GAAP you likely already know and understand (like, the fact that business finances should be reported separately from personal). If you've ever been confused about the complexities of these concepts, hopefully this video should help you bookkeepers!

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[FinePointsBookkeeping]

Did you ever feel confused when you heard about GAAP?

[youcefyahiaoui]

I love your effectiveness and humility in explaining these principles. I must have viewed a dozen of videos and I had to turn off some halfway. It was until yours that you pitched them with simplcity, clarity and they actually made sense to me. Thank you again. I look forward to watching your accrued method video. You rock!

[kathleenbieke]

Saying that we know more than we know..true! I have an interview for our accounting department and this is helping my past knowledge gel in my mind.
Thank you for this video!

[jasminlynettgarcia]

This video is saving my life for my accounting for managers class~!!! Thank you

[yerfavpsycho]

I haven't really thought about GAAP since college, thanks for the refresher!!!

[TienNguyen-ryjz]

I was about to look up for some more info about GAAP and your video popped up. talk about perfect timing. Tks

[pranalipatil]

@MorganIn, matching principle, that inventory is shown as asset until it’s get sale, when it’s get sale, shown as expenses in the same time period.

[jmwild]

I'm late to catching this video, but I've been doing a lot of research toward a bookkeeping certification, and I have some examples of how the matching principle applies. One example is prepaid expenses like maybe insurance on a property or a vehicle. Rather than record the entire expense for the insurance in the first accounting period, you spread it out over its lifetime, releasing the expense piecemeal to your income statement. Another example is when selling goods: when you record revenue you need to record the reduction in inventory, that reduction then hits your "cost of goods sold" account which is an expense, within the same accounting period. And a third example is depreciation: when you purchase a fixed (non-current) asset like manufacturing equipment, you don't want to incur the entire expense in the first accounting period, but spread out over the asset's useful life, so you depreciate over time and release the depreciation as an expense to your income statement.

[stevedavis]

thank you for explaining this in such a way that us regular people can understand.

this is about the 6th video I watched and other videos videos talk in such a way that the person watching has to have at minimum a basic understanding of accounting.

this video explained GAAP in a way that us normal people can understand. thank you for that.
the only thing that would have made this any more informative to those of us with zero accounting background is to add graphical examples.

great video though.
thank you.

[selina]

Thank you! Mid-term tomorrow and I want to be sure I really understand these.

[ranaraeuchle]

Matching principle works for artists and teachers - purchasing tools, materials, etc. that will be used for an upcoming or future project, but are not necessarily an expense until that project commences. Or at least that's the way I have understood it.

[thebestgeneralchannel]

Thank you for your videos now I can undertand better.

[ideearchie]

Thank you finepoints, this was really, really easy to understand and put into practice. You put it in a layman english.

[elhamnazari]

Thank you for the video!❤️ I have a question.
Is there any certification based on that I can show that I have a good knowledge of GAAP?

[JessieMarie]

Matching Principles might be for a service shop for example, that the parts are purchased as stock but not towards revenue until their installed in the car and the R/O is closed out.

[maggieomulindi]

The matching expenses would be prepaid expenses like insurance or rent. If a client pays a year in advance on Nov 1st, a journal entry is needed on Dec 31st to show that only 2 months of that transaction has been used.

[cherroy]

I would like a video on accrual vs cash please. After watching this, I am unsure I understand now.

[manuelvega-villa]

yeah its not a cost until you can tie how much you used to produce something to sell, we did this and its because its wip at this stage, and so what is not used on a product to sell is still stuck in inventory, only put down costs it took per unit to sell, the rest not used is in inventory as WIP. or else said number of items at a certain time sold would have a humongous costs of all inventory bought tied to it.

[anasachahboun]

had to watch this for a sec time got lost in the eyes for the first time watching it ahahahahahaha now i understand it well thanksss

[DavidSpid]

Please share a video regarding accrual method vs cash basic