Tax accounting - What is tax accounting?
Defined: tax accounting is the accounting process that focuses on tax issues - including filing tax returns and planning for future tax responsibilities - as opposed to the preparation of financial statements.
Tax accounting is a specialized field of accounting where accountants focus on the preparation of tax returns as well as tax planning for future taxable years. Principles of tax accounting differ from the UK's Generally Accepted Accounting Practices.
Important to consider
Tax law varies immensly from country to country, as well as between different regions and even cities. Therefore it is important to consider having your accountant prepare or oversee your tax accounting records.