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Gaap Articles

Browse 2 Gruv blog articles tagged Gaap. Coverage includes Payment Protection & Finance and Business Structure & Compliance. Practical guides, examples, and checklists for cross-border payments, tax, compliance, invoicing, and global operations.

Financial Management16 min read

Revenue Recognition for SaaS Companies Under ASC 606

Use revenue recognition as an operating control, not a year-end cleanup task. If you make decisions from cash balance alone, you can spend against cash that is not earned yet. Under ASC 606, cash collected before you transfer the promised service is a [contract liability](https://dart.deloitte.com/USDART/home/codification/revenue/asc606-10/roadmap-revenue-recognition/chapter-14-presentation/14-2-contract-liabilities), commonly called deferred revenue, until that service is delivered.

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Deep Dives16 min read

GAAP for Small Businesses Choosing Between Cash and Accrual

Usually not, at least for private solo businesses outside SEC filing contexts. The legal mandate is tied to SEC filings. [Regulation S-X](https://www.sec.gov/about/divisions-offices/division-corporation-finance/rules-regulations-schedules) (17 CFR Part 210) governs financial statements filed with the SEC, and public companies file a 10-K each year. For most private owner-operators, the practical question is whether outside parties still expect formal financial statements.

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