Accounting systems are the means by which businesses record and report their financial information. For businesses to stay compliant with the Generally Accepted Accounting Principles (GAAP) set forth by the Financial Accounting Standards Board (FASB ), they must have an accounting system that meets the GAAP standards. In order to do so, a business must have an accounting system that is organized, accurate, and in compliance with all applicable laws and regulations. An accounting system must be able to track, control, and report on money coming into and going out of the business; it must also be able to organize data in a manner that accurately reflects the business’ finances. An effective accounting system helps businesses stay organized, efficiently manage their financials, and achieve their goals.