14. Tax accounting (dial 2)

Most accountants specialize in a field of accounting. The major fields include financial accounting, management accounting, , auditing, management consulting services and tax accounting about which one i will tell.

Tax accounting consists of preparing tax returns for organizations or individuals and determining the taxes involved in proposed business transactions. Tax accountants suggest ways to save money on taxes. They must have a thorough knowledge of the tax laws that affect their clients or employers. They also must know the details of court rulings in a wide variety of tax cases.

U.S. tax accounting refers to accounting for tax purposes in the United States. Unlike most countries, the United States has a comprehensive set of accounting principles for tax purposes, prescribed by tax law, which are separate and distinct from Generally Accepted Accounting Principles.

The Internal Revenue Code governs the application of tax accounting. It sets the basic rules for tax accounting. So the taxpayer must choose a tax accounting method using their financial accounting method as a reference point. If the taxpayer engages in more than one business then it may use a different method for each business

In many other countries, the profit for tax purposes is the accounting profit defined by GAAP with such additional adjustments to book profit as are prescribed by tax law. In other words, GAAP determines the taxable profits except where a tax rule determines otherwise. Such adjustments typically include depreciation and expenses which for policy reasons are not deductible for tax purposes, such as entertaining costs and fines.

15. Jobs in accounting (dial 1)

It’s an open secret that there are public companies and private companies. Public accountants provide accounting services to other companies. Public companies provide three main categories of service – audit, tax and consulting. Audit division reviews the financial statements that clients compile and certify that they are based on generally accepted accounting principles, and that they are free of what is called material misstatements. The client can then use the opinion of the company to demonstrate the validity of the financial statements to their stockholders, or to a bank when seeking a loan.

The toughest part of the job is busy season from January to March. Once the busy season ends – there is a liberal vacation policy and excellent benefits.

There are four large public accounting firms that dominate in industry. These four companies work with almost every large company in the country in one capacity or another.

Private accounting refers to the internal accounting departments you would find in large companies.

Accounting jobs can be divided into four main groups:

• Public

• Management

• Government

• Internal Auditing

Public accountants can work for any number of clients in the private sector, including corporations, nonprofit organizations and individuals.

Management accountants help companies stay financially fit by planning budgets, evaluating performance and managing assets and costs.

Like companies in the private sector, the government hires accountants to look after its financial records and make sure its departments are running smoothly. Accountants may also work as auditors for agencies like the IRS.

Similar to auditors working for the government, accountants who specialize in internal auditing are employed by companies to examine financial practices and increase operating efficiency.