A great concept, an ideal location and top-notch marketing can all play a role in the success or failure of your business. Proper accounting is even more critical, though. Good accounting gives you an accurate picture of your business’s cash flow, allowing you to make informed decisions. Small businesses typically aren’t required to use generally accepted accounting principles, or GAAP. However, these principles establish how to create accurate financial statements that can be easily understood by investors and other stakeholders.