2 Types of Tax Accounting
Tuesday, May 18th, 2010Unlike Generally Accepted Accounting Principles(GAAP), tax accounting is an extensive set of laws and regulations required of businesses to submit income tax information. Just like federal income tax, this set of comprehensive accounting principles is regulated at the national level. As of the 2008 fiscal year, there are only a few different ways to compile tax accounting information, but 2 main methods. The acceptable ways of submitting information are the cash method, accrual method, or a combination of both. Depending on qualification, these different methods can be chosen by a company according to timing of transactions such as credits and debits. If qualified for either method, the company will look at the advantages and disadvantages... Read more »