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Filing Taxes with The Help of a Good Tax Accountant Kissimmee

Before understanding exactly why you need a really good Tax Accountant Kissimmee, it is very important that you understand the core concepts of tax accounting as they exist per se, especially if you are in the process of setting up your very own highly specialized business. Let us take a quick look at exactly how and why such taxation accounting is absolutely integral to the otherwise smooth and consistent running of just about any business concern in the US today. 

  • What exactly is ‘Tax Accounting’ anyway?’

Tax accounting basically consists of various different accounting methods that generally tend to focus more on taxation related issues in lieu of the setting up of the more common public financial statements as per routine generally accepted accounting principles. In fact, tax accounting at least as it exists in the US, is generally governed by the ‘Internal Revenue Code or the IRC.’ This code very specifically dictates all of the different rules and regulations that all of the private and specially public companies, firms, and sole proprietors, should always follow. This holds especially true whenever they are preparing their tax returns for the express purpose of paying their necessary tax liabilities. However, it is really pertinent to understand that these tax principles more often than not, generally tend to differ from the commonly accepted accounting principles as they exist today.

  • What precisely are ‘Tax Returns’ all about?

Here it is pertinent to note that a tax return may well be referred to as the tax form of the sort that is usually used to report daily income and then also used to subsequently file all the duly required taxes, that have been accrued by the business entity, and which have to be paid to the relevant tax authorities. Such as the Internal Revenue Service (or as it is more popularly known as the IRS) in the United States of America.

Ultimately, the core purpose of filing any and all of these tax returns is to basically allow the taxpayers or taxpaying legal entities to be able to go right ahead and calculate their overall tax liabilities so that they can either remit their payments and/or request various refunds, as the case may be.However, here it is very important to be able to understand that most tax returns simply ‘must’be filed just about every year by all individual business owners or legal business entities. That is, if they are in a position to potentially receive (or have actually received) any and all profits and incomes accrued during the annual tax year, irrespective of the sources of the profit or income. These may include the following:

  • Earnings accrued through interest
  • Wages
  • capital gains
  • dividends or
  • any other legally accrued profits that have been gained though any sort of legitimate commercial activity or enterprise

However, any sort of Illegal cash generation activities are,due to their very nature, never included in the tax authorities net, since they operate under the radar so to speak. But in such cases, anyone not involved in a completely legitimate business enterprise who seems to have accumulated a lot of money will almost certainly be looked at with deep suspicion by the erstwhile tax authorities. They will in turn, report him or her to the law enforcement agencies to figure out which laws have been broken and arrest the person, for doing so.

On the other hand, if a legitimate business does not really pay its due taxes on legit commercial enterprises, then it also carries a very high price tag since the tax authorities will sooner or later figure out that a person is not a tax payer. This is a criminal offence and it is known as ‘tax evasion’ in the United States and this crime carries both stiff fines as well as long imprisonment terms, as punishment. 

However, there is no particular need to be really apprehensive provided that you live anywhere near Kissimmee in Florida since there is many a really good Tax Accountant Kissimmee, who will always be on hand, in order to advise you as and when such advice is required.

  • Tax Accounting: A break down

The basic purpose of all accounting principles is to help track down the funds that are generally associated with any sort of individual business in any way. For this purpose, since ages past there have been a rigidly set number of really well-known principles on which the whole accounting world is based. These specific principles are as follows:

  • Generally established accounting principles or GAP

As a general rule, all Financial accounting (irrespective of the fact that it is tax accounting or cost accounting or for that matter even a basic book keeping exercise) essentially works by utilizing a whole series of accounting principles that have already been well established, literally for centuries.

In the case of such tax collection accounting, any specific selection of many if not most of these accounting principles, is actually based on these principles’ intrinsic ability to provide a highly accurate bird’s eye picture of the financial health as well as the profitability of the company to the regional tax authorities (without there been any room for ‘any window’ dressing). Here, the core principles that might be used, would of course, end up depending almost entirely on both the reporting requirements as well as regulatory body that is governing the tax status of the sole proprietorship, company or firmthat will actually be facing the IRS, with the help of a good Tax Accountant Kissimmee.

For just about all public companies that are working in the US or if they have been duly incorporated in the United States of America, then most such businessand commercial entities are mandatorily required to try and execute their financial accounting needs (this also includes taxation based accounting as well) in accordance with and also while keeping the GAAP or Generally Accepted Accounting Principles framework in mind.

Here, it is important to understand that just about all of the international public limited companies are essentially liable to first and foremost, report their financial statements as per the International Financial Reporting Standards or IFRS for not just the ease in the collection of taxation information, but also consistency as well. Here the main reason because of which all of these universally accepted accounting principles have actually been drafted is because they help provide a steady stream of continuous information to not just their regulators alone, but also help provide all the relevant information to the taxation and collection related authorities too.  Apart from that, they also help the business entity’s many different stakeholders such as investors and creditors and also their regulatorsto be able to get a clear birds eye view of the company. This is only possible with the help of a good Tax Accountant Kissimmee.

These basic accounting principles are generally utilized though certain accounting statements and as a matter of fact, it will not at all be wrong to unequivocally state that the main core of just about all accounting essentially depends on the three main ‘financial statements’ which are as follows

  • Balance sheet
  • Cashflow analysis
  • Income statement
  • Balance sheet

All of a business entity’s assets, (specifically company asset, including both fixed and liquid assets, liabilities(that is the overall payables of the company) and the capital(or equity or ownership interest as it is more popularly known) accounts are almost alwaysreported on the balance sheet. The balance sheet in effect, essentiallyutilizes all of the mainfinancial accounting principles in order to report both the (net and gross) total worth of the business enterprise as well as the overallprojectionof the financial direction of the company with reference toits future economic growth at a holistic level.

  • Income statement

All revenues (including gross profits) along with all expenses are both collectively shown and also reported on the same income statement regardless of the nature and scope of the business. As a matter of fact, the key reason for showing them here is to help make sure that thefinancial accounting aspect of the business entity will still be able to result in the actual determination of the ‘real’net (rather than grossincome, that is, profit before deduction of taxes) income that is present in the last ‘total’ section the income statement as can be verified by theTax Accountant Kissimmee.But should the business concern end up running at a total net loss then the same will end up being marked in brackets, or with a minus   (-) sign to the left of the figure.

  • The Statement of Cash Flows

The cash flow statement or statement of cash flowsis prepared in order toeffectively explain any specific changes that just might take place in the business entity’s overall cash funds (or for that matter even cash equivalent funds such as stocks, bonds, debentures and other reasonably liquid securities.) In this case, the statement has to be prepared for the total duration of the overall period of time that is specifically mentioned in the heading  column of the cash flow statement table.

However, here it is imperative that we realize that the concept of tax accounting is slightly different from conventional accounting per se. Especially in the sense that it is generally used for the express purpose of informing the managers and other line staff members that the owners and investors of the company will be able to have detailed knowledge of the actual financial position of the business entity.  Here, your friendly neighborhood Tax Accountant Kissimmee  will certainly be able to help you and to also teach you the ‘tools of the trade’ so as to prevent you from making any  mistake, and at the same time to stop you from inadvertently incurring a critical loss.

For example, many balance sheet items can easily be accounted for in a quite different wayby your Tax Accountant Kissimmee,especially when you vector in the fact that he is basically helping you prepare not just the financial statements for the benefits of all the stake holders concerned, but also the mandatory tax payables that must be paid to the relevant authorities. For example, a company can all too easily prepare its very own  financial statements by virtue of the implementation of the age old first-in-first-out or FIFO method. But they are not bound to do so, since it is possible to also try and implement the last-in-first-out or LIFO approach for satisfying the tax collectors and as your Tax Accountant Kissimmeewill tell you, the core advantage of the LIFO procedureis that it can significantly reduce the financial period’s overall current taxes payable.

Generally speaking,all financial accounting at the holistic levelencompasses just about all of the various financial transactions that just might occur during any particular fiscal year to a certain extent, but as your Tax Accountant Kissimmee  ,will tell you, the main purpose of tax accounting is to basically focus on any and all those transactions, that are also able to specifically affect the entity’s whole tax burden per se.

  • Conclusion

In the light of the above, we can easily deduce exactly how important the Tax Accountant Kissimmee really is in making good and sure that all of your due taxes are properly paid and that there really is no chance whatsoever that you might be booked for ‘tax evasion, in case you have inadvertently filed your documents in an erroneous manner.

Moreover,a Tax Accountant Kissimmeewill also help ensure that any legal benefits that can lawfully be  derived from the rebates and exemption schemes will be done so, in order to maximize your profits.  So that you will always remain in the green, rather than in the red.

Robert AcevedoFiling Taxes with The Help of a Good Tax Accountant Kissimmee