Streamline your deal governance for accounting and tax with airSlate SignNow

How to create outlook signature

another main type in modern accounting is tax accounting I'm Thomas Harwood and welcome to the accounting student where we create free and short videos so that you can learn about accounting today's video is looking at what is tax accounting we're Financial Accounting management accounting and auditing being mentioned frequently as the main types of modern accounting some may forget that tax accounting is perhaps as significant tax accounting is the process of preparing tax returns and plan future taxable years of an entity the main difference between financial accounting and tax accounting is that Financial Accounting will include all the financial transactions of an entity while on the other hand taxation accounting only focuses on the transactions that can or have an effect on the tax charge of an entity it also looks at how the transactions relate to Accurate Tax calculation and Document Preparation taxation accounting involves accounting methods that concentrate on taxes rather than have a financial statements look to the users it is very important to realize that Axel can vary greatly from continent to continent country to country and city to City taxation principles usually differ from the accounting principles or standards otherwise known as generally accepted accounting principles gap which was briefly mentioned in a previous video called what is financial accounting this is example time this is where we put the theory into so-called real-life examples this is to try and increase your understanding of the topic and Theory Tim's toy shop are thinking about how to prepare the financial statements of this year's trading a member of the finance department suggested using the first in the first out method fifo to record their infantry this is because it will look better when a user considers of natural statements from a financial accounting perspective another Finance assistant suggested using the last Austin first out method lifo to record the Infantry for taxation reasons this is because the lifo method will reduce the taxis payable during the present year of trading so that was the explanation of tax accounting if you enjoyed it press the like button if you have a question you want answers leave it in the comments below and we'll try our best to answer it and if you're not already subscribed make sure you click the red subscribe button to keep updated with the accounting student thanks for watching we'll see you next time