@AugustZellmer @Rustler 

No SYSTEM can be "GAAP-compliant", but some work better than others to meet compliance.

 

GAAP (Generally Accepted Accounting Principles) are accounting practices that accountants do, nothing any SW does for you.  One part of GAAP is requirement for accrual-basis accounting.

 

QB and QBO are both cash-basis systems so to follow GAAP you must work around defaults and skip some automated functions that are all cash-basis, such as posting expenses from bank feeds.  

 

Note:

Accounting is done on cash or accrual-basis.

Income taxes are done on cash or accrual-basis. 

These are two different decisions that a company makes and they do not have to be the same.

Means same for accounting or taxes, cash-basis are only transactions where cash is exchanged.

 

There are 10 GAAP Principles, including accrual-basis accounting. (Tax is separate decision).

GAAP are accounting practices performed by an accountant not a system so no accounting software can be "approved" as GAAP compliant.