U.S. Bookkeeping and Accounting Guide

U.S. Bookkeeping and Accounting Guide U.S. Bookkeeping and Accounting Guide

U.S. Bookkeeping and Accounting Guide

U.S. Bookkeeping, Financial Reporting & Tax Reporting — At a Glance

Who needs what in the United States — and how the pieces fit together for founders, CFOs, and cross-border investors.

1) Bookkeeping Requirements (IRS)

Unlike Germany’s HGB size classes, U.S. federal law does not impose a universal GAAP bookkeeping duty on private (non-public, non-regulated) companies. Instead, the IRS requires that you maintain books and records that clearly reflect income and that you use a permissible, consistent accounting method (cash or accrual).

  • Cash method for “small business taxpayers”: Many sole proprietors, partnerships, S-corps and C-corps that meet the inflation-indexed gross-receipts test may use cash-basis “income–expense” bookkeeping, including simplified inventory rules. See details and current thresholds in our U.S. Cash Basis Accounting Guide.
  • Accrual/GAAP when needed: Larger or inventory-intensive businesses, and businesses whose lenders/investors require it, will keep accrual books (often U.S. GAAP). Practical differences vs. cash, mapping to returns, and record-retention expectations are covered in the cash-basis guide.
  • Information returns and e-filing: Contractors paid outside of card/TPSO rails typically trigger Form 1099-NEC (services) or 1099-MISC (e.g., rent). Card and platform payouts are reported by the processor on 1099-K (phase-in thresholds apply). If you file 10+ information returns in total, e-filing is generally mandatory. See the guide for deadlines and scope.
  • Payroll & large cash receipts: Employers file Form 941 quarterly, W-2/W-3 annually, and Form 940 for FUTA. Cash receipts over $10,000 in a trade or business require Form 8300 within 15 days. Details in the cash-basis guide.

Background and how these rules interact with federal business returns are summarized in the U.S. Business Tax Guide.

2) Financial Reporting (U.S. GAAP) & Consolidation

U.S. financial reporting obligations center on who you are (public vs. private) rather than your size under commercial law.

Public companies (SEC registrants)

  • Must prepare audited U.S. GAAP annual financial statements (Form 10-K) and interim reports (Form 10-Q), with MD&A and other Regulation S-K disclosures.
  • Filer categories (Large Accelerated, Accelerated, Non-Accelerated; SRC/EGC scaling) drive deadlines and whether auditor ICFR attestation under SOX 404(b) is required. See our U.S. Accounting Guide.

Private companies

  • No federal duty to publicly file GAAP financials. Statements are prepared when owners, lenders, or contracts require them. Framework can be U.S. GAAP or (by agreement) a special purpose basis (e.g., income-tax basis).
  • Assurance level depends on stakeholder needs: audit, review, or compilation under AICPA standards. See the U.S. Accounting Guide.

Consolidated financial statements (U.S. GAAP)

  • Consolidation is based on control, not size thresholds. U.S. GAAP (ASC 810) requires consolidation under the voting-interest model and, where relevant, the VIE model. Equity method applies to significant influence (ASC 323).
  • SEC filers include consolidated statements plus MD&A; private groups consolidate when they issue GAAP financials to stakeholders. Key components and deadlines are outlined in our U.S. Group Accounting Guide.

3) Tax Accounting & Reporting Obligations

Tax returns are governed by tax law (not GAAP). Your bookkeeping method must clearly reflect income; choosing or changing methods typically involves IRS rules and, in many cases, Form 3115.

  • Entity income tax returns: C-corps file Form 1120; S-corps 1120-S; partnerships/most multi-member LLCs 1065; certain foreign corporations 1120-F. Due dates and extensions are summarized in the U.S. Business Tax Guide.
  • Information returns: Payers issue 1099-NEC/MISC for non-employee payments made by cash/check/ACH/wire; 1099-K is issued by payment processors for card/TPSO payouts (phase-in of lower thresholds). See the cash-basis guide for current thresholds, deadlines, and the 10-form e-file rule.
  • Payroll taxes: Withhold and deposit federal income tax, Social Security, and Medicare; file Form 941 quarterly, Form W-2/W-3 annually, and Form 940 for FUTA. State payroll returns vary.
  • Large cash receipts: File Form 8300 within 15 days for > $10,000 cash received in a trade or business.
  • International information returns (common cases): Form 5472 (certain foreign-owned U.S. entities), 5471 (certain foreign corporations owned by U.S. persons), and FBAR (FinCEN 114) for qualifying foreign accounts. Overview in the business tax guide.
  • State & local taxes: Sales/use tax compliance often applies once physical or economic nexus thresholds are met (marketplace rules may shift collection to the platform). See the nexus discussion in the business tax guide.

How to Use This Page

Disclaimer. This overview is general information, not legal or tax advice. Rules change (e.g., gross-receipts and 1099-K thresholds). Please use the linked guides for current details and contact us for advice tailored to your facts.