Accounting and taxation are two essential elements to monitor to ensure the sustainability of a business. Filing financial statements and tax returns for specific businesses helps maintain good financial health.
Do you know what the difference is between an accountant and a tax specialist? Which expert should you contact to take care of your business finances? Discover everything there is to know about accounting and taxation in order to entrust your finances to the right financial expert.
Accounting or taxation?
Many people think that an accountant is an expert with taxes. Although accountants can handle taxes, the specialists are tax specialists. Find out now what is accounting and taxation as well as the work of the accountant and the tax specialist.
Accountability
Accounting is more than taxes. It is a broad discipline that includes bookkeeping, but also taxes and everything directly or indirectly related to the administrative sphere of a business.
Accounting is therefore the management of all the financial data of a company. This is a critical role that ensures executives have a clear understanding of the financial situation in which the company finds itself. This allows them to make informed business decisions.
Accounting is also the very basis of any business strategy. Good accounting management allows companies to develop a better structure and ensure their profitability.
The responsibilities of the accountant within your company
An accounting job in a company is a job with many responsibilities. Accountant responsibilities include:
- Financial data processing and analysis
- Development of the budget and financial objectives
- Preparation of financial statements
Taxation
Taxation focuses on everything related to tax laws. In other words, taxation is the set of tax rules and the tax law of a company. Accounting is responsible for managing all the financial operations of the company. Tax accounting, on the other hand, specializes in anything that can help complete the tax return.
Although those pursuing a career in accounting can handle taxation, it is strongly recommended that you hire a tax professional. A tax accountant is in charge of corporate taxation and developing a tax strategy tailored to the needs of the business.
The tax accountant, within a company, also plays the role of intermediary between the company and the tax authorities.
Difference Between Accounting and Taxation
The main difference between accounting and taxation is in the work of the financial expert. Only an accountant can do a full business valuation, since the accountant is responsible for all of the company's financial data.
The tax specialist, on the other hand, only takes care of making sure to complete tax returns that are as precise as possible. His work therefore consists of developing a tax strategy that respects the rules and tax law of a company.
Governed therefore by strict tax and accounting rules, taxation and accounting are very complementary, but do not have the same end. While accounting is more about analyzing all of a company's finances, taxation focuses more on taxes and taxation.
Is managing your strata property becoming overwhelming? Let our experienced team of Strata Administration Services in Melbourne take care of all the administrative tasks, so you can focus on building a thriving community. Contact us for professional administrative solutions!
The qualities and skills of a good tax accountant
