| > | | | | expense is due. In the case of the cash method |
| Normal 0 false false false | | | | of accounting the income is generated when the |
| MicrosoftInternetExplorer4 /* Style Definitions */ | | | | cash is received as well as the liability is recorded |
| table.MsoNormalTable {mso-style-name:"Table | | | | when the payment is actually made. Both of |
| Normal"; mso-tstyle-rowband-size:0; | | | | these methods have their own positives as well |
| mso-tstyle-colband-size:0; mso-style-noshow:yes; | | | | as negatives. It is really imperative that the |
| mso-style-parent:""; mso-padding-alt:0in 5.4pt 0in | | | | companies as well as the individuals choose the |
| 5.4pt; mso-para-margin:0in; | | | | method that is suitable to them. |
| mso-para-margin-bottom:.0001pt; | | | | |
| mso-pagination:widow-orphan; font-size:10.0pt; | | | | The tax accounting method is based on the |
| font-family:"Times New Roman"; | | | | applied financial accounting that the tax payer has |
| mso-ansi-language:#0400; | | | | chosen to prepare its reports. It is important that |
| mso-fareast-language:#0400; | | | | the tax payer selects the tax accounting method |
| mso-bidi-language:#0400;} | | | | with the financial accounting method as the |
| The term tax accounting refers to the accounting | | | | referral point. There are many positives that are |
| that is done in order to keep a check on the | | | | associated with the use of tax accounting |
| taxes that an organization or an individual would | | | | methods. For instance the tax accounting avoids |
| pay on the taxable income. The tax laws vary | | | | any kind of record-keeping that is completely |
| from country to country and thus an accountant | | | | redundant for the managers, it aids in the faster |
| who wishes to have a career in tax accounting | | | | decision making, it also allows the business owners |
| needs to be very much knowledgeable about the | | | | to have a complete control over the budgets that |
| various tax laws that are present in the country | | | | they make and their acquisition forecasts, it also |
| he is operating in. In almost all the countries there | | | | provides them with the true picture of their |
| are generally two types of taxes that | | | | profits as well as losses, the company also |
| are:a) The accrual methodb) The | | | | exhibits the goodwill regarding their legal |
| cash method | | | | compliance. |
| | | | | Normal 0 false false false |
| The company or the individual can adopt any | | | | MicrosoftInternetExplorer4 /* Style Definitions */ |
| another method that suits them but only after | | | | table.MsoNormalTable {mso-style-name:"Table |
| the consent of the secretary of the treasury. It | | | | Normal"; mso-tstyle-rowband-size:0; |
| is important to note that it is also possible to | | | | mso-tstyle-colband-size:0; mso-style-noshow:yes; |
| change the method of calculating taxes but only | | | | mso-style-parent:""; mso-padding-alt:0in 5.4pt 0in |
| after the consent of the secretary of the | | | | 5.4pt; mso-para-margin:0in; |
| treasury. In the accrual method of tax accounting | | | | mso-para-margin-bottom:.0001pt; |
| the income is registered when the payment is | | | | mso-pagination:widow-orphan; font-size:10. |
| made due, and the liability registered when the | | | | |