Generally Accepted Accounting Principles Articles

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.