Accounting is the recording, interpretation and reporting of financial transactions. Each and every business must keep proper record of all such transactions. There are several branches of accounting such as financial accounting, managerial accounting and tax accounting.
Whether your business is a sole proprietorship, partnership or corporation, business men must file an income tax return and pay income taxes. Proper recording and accurate tax return will be beneficial in maintaining proper reputation of business and on the other side, poor records may result in underpaying or overpaying of taxes. It means recordkeeping will directly affect the tax return policy.
In simple we can say that Tax Accounting is important for complying with tax laws as well as for minimizing tax expenditures.
Most taxpayers dread tax season all year round and for those who understand the process, filling taxes seems a tedious task. But for others it becomes a confusing ordeal. A tax accountant plays a vital role in the formation of a business. Tax accountants are responsible for maintaining proper record. They tend to offer a broad range of services, from budget analysis and asset management to investment planning, legal consulting, cost evaluation, auditing services and many more.
Tax accounting will cover financial planning services, litigation consulting services and managerial advisory services. The tax accounting group provides a wide range of tax compliance, planning and consulting services to individuals, business firms (including partnership and corporations).
There are several income tax software programs available on the market for completion of yearly taxes. TaxACT software is available in online, download and CD-Rom form. TurboTax software offers an online or a software package for personal or small business tax preparation. The software can be downloaded or provide by CD-Rom. TaxSlayer software can be used online or downloaded. There is no charge for the web version however there is a small efile fee for federal taxes. TaxCut income tax software is developed by H & R Block, is ideal for simple returns.