When you think of GAAP compliance, what comes to mind?
Rules, frameworks, and regulations?
Finances?
Getting your house in order?
Essentially, it could be all those things. But you know that already. It’s accounting 101, and no need to school you on this topic.
But for those who may be new to GAAP, it stands for Generally Accepted Accounting Principles. It’s a set of rules and procedures for financial reporting laid out by the Financial Accounting Standards Board (FASB).
In this short guide, we will touch on the stuff you want to know – How Fishbowl helps businesses become GAAP compliant.
Fishbowl + Accounting
Fishbowl helps accounting teams connect their inventory and manufacturing to powerful accounting solutions, like QuickBooks. Tracking your inventory and managing your finances all on the same platform helps keep up a smooth and seamless workflow process.
Using a solution like Fishbowl you can increase transparency, accuracy, and efficiency within your business. Eliminating manual, double-data entry and reducing errant entries when you integrate your inventory and manufacturing functions with your accounting platform.
How does this help with GAAP Compliance?
Accuracy is King. As you know, inventory must be reported at the lower of cost or market value, ensuring that the inventory’s value on financial statements reflects its true potential to generate revenue. This principle prevents businesses from overstating their financial position.
Fishbowl provides real-time visibility to current and accurate stock levels, ensuring that you are tracking all items that are important to your business.
In Fishbowl, you are provided a list of built-in options to select from when tracking or you can customize the list that best suits your business. Some of those options are:
- Creation date
- Expiration date
- Lot number
- Revision number
- Serial number
- Tag number
Saving time by tracking your stock anywhere
Maintaining accurate and up-to-the-minute inventory records is crucial to running an efficient operation. Minimizing the time it takes to create and compile those records is just as crucial. With intelligent software, it’s possible to gain real-time traceability and detailed reporting while eliminating manual steps, data entry, and errors.
Consistency is also king... Or queen
GAAP requires consistency in how inventory is valued and reported. An example could be, if a company decides to switch from one method of inventory valuation to another, it must explain the change and its impact on the financial statements.
In your sales workflow, Fishbowl sends invoices to accounting solutions like QuickBooks, allowing you to manage your accounts receivable from QuickBooks, including statements and customer account payments.
Fishbowl handles order fulfillment, including sales orders, picking, packing, and shipping, purchase orders, and receiving. It then updates your accounting solution with all the appropriate accounting adjustments, including manufacturing information and data on inventory assets, COGS, income, accounts receivable, tax and payment, and accounts payable.
Your business remains compliant with detailed reporting on financial records and your inventory. You’ll automatically be ready for any recall or audit, if ever faced.
If you want to learn more on how fast and easy it is to integrate Fishbowl and your accounting solution, maybe something like QuickBooks? We have an implementation specialist that will help you get up and running in as little as 6 to 8 weeks. Book a demo now