Is bookkeeping taking your attention away from the business you actually want to grow? Business owners often find themselves dealing with receipts, invoices, bank transactions, supplier bills, customer payments, accounting software, and financial records when their time would be better spent serving customers and managing operations. At the same time, leaving bookkeeping until later can create an incomplete picture of the company’s financial position. The Accountant Plus provides experienced bookkeeping services for small businesses to take this administrative pressure away from business owners and provide a dependable financial-recordkeeping process. Our team can manage monthly transaction recording, bank and credit-card reconciliations, accounts payable, accounts receivable, expense classification, QuickBooks bookkeeping, bookkeeping cleanup, and financial reporting. Our extensive accounting and financial-management experience allows us to look beyond simple data entry and help maintain records that are useful for understanding business performance. With professional monthly bookkeeping services, you can spend less time worrying about accounting administration and more time concentrating on customers, employees, operations, and business growth while having organized financial information available when you need it.
Key Accounting Policies Commonly Used in the USA
1. Revenue Recognition Policy
Defines when revenue is recognized.
Examples:
- Service company: Revenue recognized when services are performed.
- Construction company: Revenue recognized based on project completion stages.
- Subscription business: Revenue recognized over the subscription period.
2. Accounts Receivable Policy
Explains how customer balances are recorded and monitored.
Includes:
- Credit terms
- Collection procedures
- Bad debt provisions
- Allowance for doubtful accounts
3. Inventory Valuation Policy
Specifies how inventory is valued.
Common methods:
- FIFO (First In First Out)
- Weighted Average Cost
Under U.S. GAAP, FIFO is widely used.
4. Fixed Asset Policy
Defines how equipment, machinery, furniture, and vehicles are recorded.
Includes:
- Capitalization threshold
- Asset classification
- Useful life estimates
- Depreciation methods
5. Depreciation Policy
Explains how asset costs are allocated over their useful lives.
Common methods:
- Straight Line
- Double Declining Balance
- Units of Production
6. Cash and Bank Policy
Controls how cash transactions are handled.
Includes:
- Bank reconciliations
- Cash controls
- Approval procedures
- Petty cash management
7. Accounts Payable Policy
Defines procedures for vendor invoices and payments.
Includes:
- Invoice approvals
- Payment authorization
- Vendor management
- Payment schedules
8. Expense Recognition Policy
Determines when expenses are recorded.
Under accrual accounting:
- Expenses are recognized when incurred.
- Not necessarily when paid.
9. Payroll Policy
Defines payroll processing procedures.
Includes:
- Payroll frequency
- Employee classifications
- Overtime calculations
- Tax withholding compliance
10. Financial Reporting Policy
Establishes procedures for preparing:
- Balance Sheet
- Income Statement
- Cash Flow Statement
- Management Reports
11. Budgeting Policy
Defines how annual budgets are prepared and monitored.
Includes:
- Budget approvals
- Variance analysis
- Forecast updates
12. Internal Control Policy
Protects company assets and reduces fraud risk.
Examples:
- Segregation of duties
- Approval hierarchies
- Access controls
- Audit procedures
13. Tax Accounting Policy
Explains how the company handles:
- Federal taxes
- State taxes
- Sales taxes
- Payroll taxes
- Tax provisions
14. Lease Accounting Policy
Specifies how leases are recorded under U.S. GAAP.
Includes:
- Operating leases
- Finance leases
- Lease liabilities
- Right-of-use assets
15. Related Party Transaction Policy
Ensures transactions with owners, directors, and related entities are properly documented and disclosed.
Why Accounting Policies Are Important
Good accounting policies help businesses:
✔ Produce accurate financial statements
✔ Comply with U.S. GAAP
✔ Improve audit readiness
✔ Strengthen internal controls
✔ Reduce fraud risks
✔ Support business growth
✔ Improve decision-making
✔ Maintain consistency year after year
Example of a Simple Accounting Policy
Revenue Recognition Policy
“The company recognizes revenue when services have been provided to customers and collection is reasonably assured. Revenue is measured based on the agreed contract value excluding sales taxes.”
Accounting Policies Every Small Business Should Have
If you provide outsourced accounting and CFO services in the USA, I recommend every client maintain at least these 10 policies:
- Revenue Recognition
- Expense Recognition
- Accounts Receivable
- Accounts Payable
- Inventory Valuation
- Fixed Assets
- Depreciation
- Payroll
- Cash Management
- Financial Reporting
These policies form the foundation of a professional accounting system and are often reviewed by lenders, investors, auditors, and CFOs when evaluating a business’s financial controls.