Any commercial organization is required to maintain financial statements and submit it to the tax authorities in a timely manner. It is worth noting that this obligation applies to absolutely all companies, regardless of their size and the amount of profit received. Moreover, even when conducting loss-making activities, enterprises are not exempted from providing tax reporting. However, in addition to this, accounting is necessary. Let's look at their features and differences.
Definitions
All financial operations of the company must be reflected in the statements - accounting and tax. However, an impressive number of entrepreneurs confuse them, because they do not understand the main differences. Accordingly, the question arises: why simultaneously keep accounting and tax records? The problems that arise in this cause many bewilderment. Let's start with the definitions.
Accounting is an ordered system of collecting information that reflects the current state of the property of the enterprise in monetary terms. You need to understand that this activity requires special knowledge. Therefore, most companies do not let everything go by chance, but prefer to hire a specialist with the appropriate qualifications.
Tax accounting is carried out in order to obtain information on the income and expenses of the enterprise. These statements are intended for the relevant authorities. Indeed, it is on its basis that the tax base is determined for the subsequent calculation of the amount of contributions payable to the state budget.
You need to understand that the profit obtained from the results of these types of reporting may be different. This is the main difference between accounting and tax accounting. However, not the only one.
Features
All companies are required to keep tax records. Even those that use special modes in the calculations. In this case, the accounting procedure should be indicated in the accounting policy of the enterprise, which becomes the main document for the calculation of taxes. However, this occurs after approval by the manager.
Accounting includes documentation, preparation of balance sheets, inventory and some other measures that have a common goal. It consists in generating complete and reliable information about the economic activities of the enterprise.
Requirements
Current legislation imposes a considerable number of requirements for reporting at the enterprise. All companies must comply with them.
In particular, this applies to discount accounting. As you know, each company independently determines the value of its own goods. The discount does not apply to expenses, as it is a reduction in the value that was originally declared.This is important information that is used not only in accounting, but also in tax accounting. In the latter case, discounts are attributed to lower income.
You need to understand that this is only one of an impressive number of requirements imposed by law.
Main tasks
To better understand the difference between accounting and tax accounting, let's find out for what purposes they are used. This information will allow you to stop confusing these concepts.
So, first, we list the main objectives of accounting:
- First of all, it allows you to generate complete and reliable information about the financial activities of the enterprise, as well as the state of its property.
- Compilation of information that may be required by internal or external users to monitor compliance with applicable Russian legislation.
- Prevention of losses in the enterprise and the search for financial reserves to ensure its sustainability.
Tax accounting objectives
Discounts in accounting is an issue that deserves separate consideration. We discussed it earlier. In the meantime, back to the question of how accounting differs from tax accounting. To answer it, let's briefly list the goals of the latter:
- First of all, it is called upon to generate reliable information necessary for determining the tax base for a specific period.
- Provide the necessary information to internal and external users who exercise control over the payment of taxes to the state budget. That is why reporting should be done by a qualified professional who does not make mistakes.
- Providing information to internal users to optimize and reduce the tax burden on the enterprise.
About the differences
There is a huge difference between accounting and tax accounting. It consists of several main aspects. Let's get acquainted with them:
- First of all, the main difference is related to who the reporting is for.
- Legislation that regulates them.
- Features of recognition of income and expenses.
Who is it for?
The answer to this question will provide an important understanding of how accounting differs from tax accounting. After all, it is not only the tasks that this activity is intended to solve. It is equally important who becomes the ultimate recipient of the information received in the preparation of the statements.
So, you need to understand that the features of the organization of accounting are aimed at the fact that it is intended for the heads of the enterprise and those who are directly related to it. In addition, this information can be provided to potential investors or creditors in case the owners are interested in attracting additional funds and in this way seek to confirm solvency.
Legislative acts
This is another important point in answering the question of how accounting differs from tax accounting. Specialists are guided by different regulations in the preparation of each type of reporting. In the first case, this is the law “On Accounting”. In accordance with it, it is necessary to be based on PBU. This acronym stands for Accounting Provisions.
Somewhat different rules apply to tax reporting. Which ones? We are talking about the Tax Code, federal laws and other official sources.
Recognition of income and expenses
In accordance with the requirements for financial statements, it should reflect all cash flows. When compiling tax reports, slightly different rules apply. Moreover, legislative sources list the categories that should relate to income or expenses.
The financial statements should reflect full information about the economic activities of the enterprise.It directly takes into account direct and indirect costs. For example, the first category includes expenses that are directly related to production. For example, the purchase of materials or other raw materials, the wages of employees who are engaged in the manufacture of products, etc.
Now you know what the difference is between tax and accounting. This will clearly distinguish between both concepts and avoid confusion. This is especially important for those who have anything to do with enterprise reporting.
You need to understand that, despite the differences, accounting and tax accounting at the enterprise are closely related to each other. Indeed, they are based on the economic activities of the enterprise. In addition, both types of reporting require the accumulation and synthesis of information on the income and expenses of the enterprise. It is a subtle relationship that justifies the confusion that often arises. However, now you can distinguish one from the other using simple criteria.
You need to understand that you should not neglect the preparation of financial statements at the enterprise. Even despite the fact that it is not required for submission to the tax authorities and may be intended exclusively for the head. However, you need to understand that when compiling it, other principles apply. Accordingly, if only tax reporting is used to evaluate the activities of an enterprise, it is possible to mislead management. This is due to the fact that the profit in it is usually higher than in the financial statements. Indeed, the amount of contributions that must be paid to the state budget depends on its size. At the same time, the actual profit of the enterprise may be lower. That is why the manager should not refuse from accounting.
