I’m going to attempt something new and different with this latest blog post series. You see, when I first became interested in accounting and bookkeeping I didn’t exactly know what I was doing. I knew I was interested in math and numbers since elementary school, but it never translated to an actual job/career for me as I was going through high school and college.

It wasn’t until one fateful day that the Controller of the company I was working at had a debilitating migraine. She needed to get bills paid, and there was no backup available. She then turned to me, the current Administrative Assistant. I had worked at that company as a means to an end… My previous job at the local grocery store had just gone on strike, and I needed a job. I ended up at this office, where I became their Administrative Assistant and helped with mail, copy, and typing. (It was the early 2000s, and we were still trying to figure out texting back then!) The Controller knew I was a person that could be trusted. She knew I was reliable. She came into the office with dark glasses on, eyes closed, and she walked me through the accounts payable process. Since that day, she had poured some accounting/bookkeeping knowledge into me, and I ate it up!

Fast forward to now, I’ve learned a few things along the way, and I graduated from grad school with an MBA in Accounting. I also received my certification as a QuickBooks Pro Advisor. In fact, when I first learned about GAAP (Generally Accepted Accounting Principles), I immediately felt in over my head. With these next several blog posts, I hope to break down some essential accounting concepts for the accounting professional and business owner. Some of these concepts felt like they were lost along the way for me. My hope is that I can, at the very least, help to point you in the right direction when you have an accounting question.

Let’s start with FASB. FASB stands for Financial Accounting Standards Board (often pronounced “FASSBEE” by accounting professionals). FASB is the independent organization responsible for establishing and improving financial accounting and reporting standards in the United States. Accounting professionals created a way of codifying accounting standards, called Accounting Standards Codification (ASC), to ensure that accounting professionals have complete standards for accounting and bookkeeping across the board.

The ASC was created by FASB to streamline and improve the accessibility of the accounting standards, making it easier for users to find relevant guidance. The ASC serves as the single, authoritative source of generally accepted accounting principles (GAAP) in the United States for nongovernmental entities.  

Before the ASC, GAAP was spread across various standards, bulletins, and other documents. The ASC reorganized this material into a more coherent structure divided into Topics, Subtopics, Sections, and Subsections. This system consolidates and organizes all GAAP principles into a consistent structure. This centralization means accountants, auditors, and financial professionals have one comprehensive and reliable resource for all accounting standards, reducing confusion and inconsistency.

Disclaimer: This blog post is not a comprehensive guide to the FASB or FASB ASC as it relates to GAAP. Please consult your tax advisor or CPA for specific advice and guidance tailored to your business.