What is Financial Accounting?
Financial accounting refers accounting
that deals with the process of keeping track of and reporting the various
financial transactions related to business activities. These transactions are
summarized in the preparation of the financial statements. This comprises the
balance sheet, income statement, and cash flow statement that record the
company's operating period over a particular time period.
Opportunities to develop a successful
career as an accountant are present in both the public and private sectors. The
job of a financial accountant might vary from that of a general accountant who
works for herself/himself rather than for an organisation or company.
If you are interested to enrol in an accounting and taxation course, your
first choice should be George Telegraph Institute of Accounts (GTIA). GTIA not
only has an experienced team of instructors but also provide hands-on training
to the candidates. This prepares them as job-ready and they can easily launch
their career in the industry they are passionate about.
What
is Tax accounting?
Tax accounting refers to the process of accounting
methods that focuses on taxes rather than public financial statements. Tax
accounting is supervised by the Internal Revenue Code that decides the rules
that are to be followed by people and institutions while preparing their tax
returns.
The subsection of accounting that is
concerned with the preparations of tax returns and tax payments is called tax
accounting. Among other entities, it is used by individuals, corporations, and
businesses. Tax accounting for an individual stresses on earnings, qualifying
deductions, donations, and any investment profits or losses. Tax accounting for
a business is more complex as it involves greater security regarding how funds
are spent, and what is or is not taxable.
Which
Topics are Taught in the Accounting and Taxation Course?
Apart from the practice oriented
courses, the course curriculum consists of the following topics –
·
Cost Accounting
·
Financial Accounting
·
Law of Contract
·
Micro Economics Theory
·
Business Law
·
Business Statistics
·
Corporate Accounting
·
Business Organization
·
Corporate Law
·
Financial Management
·
Income Tax Law &
Practices
·
Business Management
·
Company Management
& Secretarial Practices
·
Indian Economy:
Policies and Performance
·
Auditing
·
Macro-Economic Theory
·
Banking Law and
Practices
·
Retail Management
·
Business Communication
·
Monetary Economics
·
Management Accounting
Tax
accounting Principles vs. Financial Accounting
There are two sets of principles that
are employed when it comes to accounting in the USA. These are tax accounting
principles and the other one is financial accounting principles or the Generally
Accepted accounting principles (GAAP).
Under GAAP, companies ought to follow
accounting principles, standards, and procedures when they generate their
financial statements for any financial transaction by accounting. While
preparing financial statements and the payable tax, balance sheet items can be
accounted for differently. Firms can use the First-In-First-Out (FIFO) method
to record their inventory for financial purposes. They can also use the
Last-In-First-Out (LIFO) method for the purpose of tax. The latter procedure
reduces the taxes payable for a specific year.
Financial accounting involves all
financial transactions whereas tax accounting focuses only on those
transactions that impact the organisation's tax burden, and how those items
relate to proper tax calculation and tax development preparation. Tax
accounting is governed by the Internal Revenue Service (IRS) to ensure that all
tax laws are being followed by the taxpayers. The IRS also uses certain
documents and forms to properly submit tax information as required by the law.
Why
GTIA?
Are you Googling for the top “account classes near me”? Your easy
solution is here. The leading institute in Kolkata offering job-ready courses
is George Telegraph Institute of Accounts (GTIA).
The training-centric courses GTIA provides prepare you to launch your careers right after the course. After doing these wide-ranging courses you will have a thorough grasp of the relevant modules. If you are interested in doing a certificate course in financial accounting & taxation, you should certainly check out the website of GTIA now.
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