Tax Accountancy deals with taxes instead of financial statements thus it often differs from generally accepted accounting principles and is governed by the internal revenue code. Tax Accounting basically emphasizes on consistency of tax accounting methods with reference to the applied financial accounting to determine the proper method of taxation.
It is the method of accounting that mainly focus on tax issues related to all activities of filing tax returns, planning for future tax obligations and to simply increase the firm’s revenues with paying a smaller amount of tax. In tax accountancy, accountant strives to minimize tax costs and tax compliance costs through proper planning and thorough tax compliance process.
The importance of tax accountancy cannot be overlooked because businesses have to maintain the smooth functioning of their finances for that they need various tax accounting methods. It’s quite obvious that when businesses earn profits they are under obligations to pay the taxes to the government.
It is the method of accounting that mainly focus on tax issues related to all activities of filing tax returns, planning for future tax obligations and to simply increase the firm’s revenues with paying a smaller amount of tax. In tax accountancy, accountant strives to minimize tax costs and tax compliance costs through proper planning and thorough tax compliance process.
The importance of tax accountancy cannot be overlooked because businesses have to maintain the smooth functioning of their finances for that they need various tax accounting methods. It’s quite obvious that when businesses earn profits they are under obligations to pay the taxes to the government.
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