Tax planning vs tax compliance Tax planning vs tax compliance, Here’s a comparison between tax planning and tax compliance: Taxation Planning: Tax planning involves strategic decision-making and the implementation… Read More »
Tax planning vs accounting Tax planning vs accounting: Tax planning and accounting are distinct but interconnected aspects of managing finances. Here’s a comparison between tax planning and accounting: Tax Planning: 1.Focuses on minimizing tax liability and optimizing tax-related strategies to legally reduce taxes. 2. Involves analyzing current and projected financial situations to identify tax-saving… Read More »
Difference between current assets and current liabilities The measure that reflects the difference between current assets and current liabilities is called working capital. Working capital is calculated by subtracting the total current liability of a company from its total current asset. It is an important metric for businesses to monitor, as it indicates their ability… Read More »
Internal liabilities Internal liabilities, also known as intra-company liabilities or intercompany liabilities, refer to the debts or obligations that exist between different entities or divisions within the same company or group of companies. These liabilities arise due to financial transactions or arrangements between various internal entities. Internal liabilities can take several forms, including: Intercompany… Read More »
Tax planning strategies Tax planning strategies involve various techniques and approaches to legally minimize tax liabilities and optimize a taxpayer’s financial situation. Here are some common tax planning strategies: Income Deferral: Delaying the receipt of income to a later tax year, such as deferring bonuses or income from investments, can help lower your taxable income… Read More »
Double-entry bookkeeping Double-entry bookkeeping is a method of recording financial transactions that involves recording both the debit and credit aspects of each transaction in separate accounts. For every debit recorded, there must be a corresponding credit of equal value, ensuring that the books always balance. It is important to accountants and auditors because it provides… Read More »
Meaning of accountancy Accountancy is a field of study and practice that deals with the measurement, processing, analysis, and communication of financial information about a business or organization. It involves the recording, classifying, summarizing, and interpreting of financial transactions to provide useful information for decision-making.The meaning of accountancy is very clear. To visit: https://www.incometax.gov.in Accountancy… Read More »
Purchase as Expense A purchase is not necessarily an expense in accounting. A purchase is simply the act of acquiring goods or services by exchanging money or other assets. However, a purchase can become an expense when the goods or services acquired are used up or consumed in the normal course of business. At that… Read More »
Revenues vs Expenses Revenues vs Expenses are two important terms in accounting and finance, and they are use to measure the financial performance of a business. It is the income earn by a business from the sale of goods or services. It is the money that flows into the business as a result of its… Read More »
Capital structure Capital structure refers to the composition of a company’s sources of funds, including debt, equity, and other forms of financing. It represents the way a company finances its operations, growth, and investments. The way a company finances its operations, known as its capital, is crucial as it affects the company’s financial performance, level… Read More »
