What is the difference between taxation and accounting?

As an entrepreneur, you probably have only one real interest and goal in mind accounting: to make sure your business stays in good financial health so that it can continue to thrive.

To do this, it is important that you put a solid organizational foundation in place from the moment you start your business. But where do you turn to make sure your business finances get off to a good start and lead you to success? Often, we hesitate between accountants and tax specialists.

Accounting

Role of accounting

By taking care of drawing up the accounts, accounting is above all a strategic management. … The first and fundamental role of accounting is therefore to be a financial information tool. This mandatory function has both financial and legal value.

What is the purpose of accounting?

Accounting is a financial data organization system of a company, or in other words a practical discipline for providing continuously and in real-time a statement of the financial position of the company.

What is the basis of accounting?

The journal is a compulsory book, the basis of accounting, which allows arriving at the profit and loss account and the balance sheet. Journal entries are called movements. A movement is always the object of a debit and a credit. We are talking about balanced writing having an impact on the assets and liabilities.

What is the difference between taxation and accounting? Do these areas of expertise complement each other well to contribute to the development of financial strategies?

It is precisely these questions that we will address in the next lines.

What is bookkeeping?

Accounting is a pretty big field. This expertise is essential to the administration of any business. Indeed, accounting brings together a multitude of procedures that allow good management of the finances of a company.

Each business has a different financial situation and has its own distinct needs. Thus, an accountant must have general and diversified expertise to be able to adequately serve his clients.

This may include, in particular, the keeping of accounting books, the production of financial statements, the development of a business strategy, support in the process of selling a business, and more.

There is also cost accounting. This branch of general accounting has two main objectives. First, it allows us to know and classify the costs linked to the production and distribution of goods or services provided by a company. It also aims to provide forecasts of expenses and operating income and to analyze potential deviations.

Calling on accounting experts is therefore essential for a business, right from the start.

What is taxation?

Taxation is a discipline that concerns everything related to federal and provincial taxes. Tax experts are specialists in tax law and can assist businesses to help them optimize their corporate income tax returns while complying with tax laws.

tax support service can also help businesses in several other ways. Tax professionals can help you plan your fiscal year endings, manage audits with tax authorities, set up and start your business, and more.

Taxation should thus become an integral part of the business strategies of every company.

Does this expertise complement each other?

Accounting and taxation go hand in hand. When tax strategies are implemented in a company, it is necessary to validate them with the accounting department to ensure their effectiveness in the short and long term. Conversely, a company’s accounting can greatly benefit from the contribution of a tax expert to improve its finances.

It is therefore in the best interests of companies to call on accounting and tax specialists so that they can work together to find solutions that will lead them to success.

Numberpro: accountants and corporate tax specialists in Quebec

Accounting and taxation are therefore very distinct fields of expertise, but both of which are equally important to ensure optimal business management. By having the expertise of accountants and tax professionals, you can be sure that your business finances are in good hands.

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