Accounting and taxation courses prepare you for a career as an accountant or auditor. They also provide knowledge in tax law and policy, and help you prepare a comprehensive tax portfolio for your company.
Courses can vary by program, but many focus on specific aspects of taxation. This may include income tax, business taxes, or estate and gift taxes.
Basics of Accounting
Accounting is the process of systematically recording, analyzing and interpreting your business’s financial information. This can help you make better decisions about your operations, meet legal obligations, and strengthen your relationships with stakeholders.
It’s important for everyone to understand the basics of accounting and taxation. This knowledge can be helpful whether you’re a beginner or already have some experience in the field.
Credits go on the right side of a balance sheet and debits are on the left. This helps keep accounts in good standing and prevents them from accumulating too much debt or equity.
A credit is an account that records the sale of goods and services. It is usually paid for with cash.
Accounting is an essential part of running a business, but understanding it isn’t always easy. It’s also crucial to know how to handle taxes, both for your own personal finances and those of your business.
Income Taxes
Income taxes are a common part of most businesses and industries. They are also an important component of the accounting and taxation course.
It is a tax imposed on the income of individuals and business entities at the federal, state, and local level. This tax impacts government revenue and the economy.
Individual income taxes are based on income received, and corporate taxes are based on net profits. Although income taxes do not distort consumer spending patterns in the same way as selective excise taxes, they still contain distortions and inequities of their own.
The income tax is considered the fairest type of tax because it is the only tax that can be applied to the full range of a taxpayer’s income and expenses. Moreover, it is easier to change than other forms of taxes such as property or sales taxes.
Business Taxes
Taxes are the amount of money that a business must pay to the federal, state and local governments. This money is used to fund administration and social programs.
Businesses pay different types of taxes, depending on their activities. Some of these include selling taxable products or services, using equipment and property, hiring employees and making a profit.
Other taxes are based on the type of business and its location. These include property tax, sales tax and income tax.
Some business owners also pay federal employment taxes. These include income, Social Security and Medicare taxes and unemployment insurance taxes.
You must file business tax returns and pay them before the end of your business year. The IRS has an online tax calendar to help you find due dates.
Tax Planning
Tax planning is a series of strategies that allow individuals and businesses to minimize the percentage of their income that must be paid to the IRS. These strategies range from claiming tax deductions to avoiding the IRS altogether.
Effective tax planning can save you time, stress, and money. In addition, it can also help you resolve possible tax disputes with the federal government, state governments, or localities.
In the accounting and taxation course, students learn about the impact of taxes on business decisions. They also learn about how taxes affect the decision-making process and how to adjust their actions to benefit from the tax benefits available.
This course is most appropriate for professionals in mid-level positions within an organization with operational or supervisory responsibilities, or both. It introduces the underlying concepts upon which GAAP authoritative literature is built, including temporary and permanent differences, measurement of deferred tax assets and liabilities, computation of current and deferred income tax expense or benefit, balance sheet classification, income statement presentation, tax-planning strategies, and required disclosures.
