US GAAP

What is US GAAP and why does it exist?

US GAAP is the common rulebook for financial reporting in the United States. It defines how companies should record and report everything from revenue to expenses to assets, so that a financial statement means the same thing regardless of who prepared it. Without a shared standard, comparing two companies' financials would be nearly impossible.

That comparability is the whole purpose. Investors, lenders, regulators, and boards rely on GAAP-compliant statements to make decisions with confidence, knowing the numbers follow consistent rules. It's the foundation that makes financial information trustworthy and useful across the entire economy.

US GAAP vs. IFRS: what's the difference?

US GAAP is used in the United States; IFRS (International Financial Reporting Standards) is used across much of the rest of the world. Both aim for reliable, comparable financial reporting, but they differ in approach: GAAP is more rules-based and prescriptive, while IFRS is more principles-based, leaving more room for interpretation.

For a US company, GAAP is almost always the relevant standard. But the distinction matters when hiring global talent – an accountant trained abroad may know IFRS but not the specifics of US GAAP. That gap is exactly why US GAAP fluency is a key thing to verify when building a global finance team.

What are some key US GAAP principles?

GAAP rests on a handful of core concepts that shape how financials are prepared:

• Revenue recognition: Revenue is recorded when earned, not necessarily when cash changes hands (see Revenue Accountant).
• Matching principle: Expenses are recorded in the same period as the revenue they helped generate.
• Accrual basis: Transactions are recorded when they occur, not when payment happens.
• Consistency: The same methods are applied period to period, so results stay comparable over time.

Why does US GAAP fluency matter when hiring globally?

Because a talented accountant trained under a different standard isn't automatically ready to work on US books. Someone who knows IFRS deeply may still need to bridge the gap to US GAAP's specific rules on revenue, leases, and more. For a US company, that fluency isn't optional – it's a baseline requirement.

This is one of the most important things to verify when sourcing global finance talent. The talent pool abroad is deep and highly skilled, but US GAAP knowledge has to be confirmed, not assumed. It's a core part of what separates a global hire who can genuinely own US financials from one who can't.

How does MAVI ensure US GAAP expertise?

US GAAP fluency is one of the dimensions MAVI's finance talent engine evaluates when matching global professionals to US companies. We don't assume it – we verify it, along with the systems experience, seniority, and judgment a role requires, so companies get talent genuinely equipped to work on US books.

That verification is part of why our global talent performs at US-caliber. Companies get accountants who know US GAAP, work in compatible time zones, and can own their financials with confidence – the expertise of a domestic hire, sourced globally, at a fraction of the cost. And because we focus on high-judgment professionals, they bring the interpretation US GAAP often demands, not just rote rule-following (FMI, 2026).