Matters of Accounting and Taxation

16 July 2022

An important dimension of management is the financial implications and one aspect is the tax implications of business decisions. Not everyone who researches and studies management will be aware that accounts can be changed for tax purposes and this could affect the most profitable way to run the business. The purposes and requirements of accounting principles and taxation are not always the same. Accounting involves the preparation of information for control and decision-making purposes and may require interpretation as well as simply absorbing factual information. In addition, there may be alternative methods of preparing financial statements that are equally acceptable in terms of accounting standards, but the choice of which could be unduly influenced by tax implications.
At first glance, one might think that the calculation of items such as income, expenses, and profits should be the same for both commercial and tax purposes. The bottom line is of course accounting and taxation for different reasons. These include the purposes of accounting and taxation, difficulties in defining economic concepts, and administrative efficiency. The relationship between accounting and taxes is evolving and more complex than it might first appear. it's clear that as developments in each accounting and taxation continue, the connection between the two isn't fastened indefinitely. If you are curious about SAP Accounting, tax, tally, foreign accounting, and GST gulf vat courses, CICA is one of the Best Accounting institutes in Perinthalmanna. feel free to reach out to our career experts here at CICA and they will give you all the information you would like to know about the exam patterns, course eligibility requirements, fee structure, and much more. CICA is providing the Best accounting courses in Perinthalmanna.