Tax Accounting

Definition of Tax Accounting

Accounting is not just a business transaction recording company activities only. accounting terms broader than just records. Accounting also includes the analyzes and meninterpretasi economic activity of an enterprise to then be communicated to the users of accounting reports so that the information can be used for decision-making right. in brief, the main purpose of accounting is to present economic information from an economic entity to the parties concerned.

In simple terms can be defined as a tax accounting system that calculates the accounting, handle, record, analyze and make even the taxation strategy with regard to economic events (transactions) of the company. Tax accounting is accounting relating to the calculation of tax and refers to regulations and tax laws and its rules of procedure. Tax accounting function is to process quantitative data that will be used to present the financial statements which includes tax calculations.

In the medium and large companies bersekala, awareness of the importance of existing tax accounting and applied seriously. However, not a few companies (whatever sekalanya) have not realized the importance of tax accounting. There is a tendency to ignore or do not want to bother to administer, so that delivered to the consultant, who almost certainly did not know the company's operations are handled with care and detail, which very likely could plunge the company.

Tax accounting function to process the quantitative data is presented as a tax report. Basically the tax accounting is mengnenai discussion of tax regulations, both regarding income tax, VAT and local taxes = taxes associated with the accounting practice of accounting is closely associated with the practice of taxation. However, the standards and rules that a reference from these two areas have some important differences, so that not infrequently lead to confusion for practitioners, corporations, and individuals. Whereas the various products produced in accordance with accounting standards into the input (input) in the calculation of tax.

Tax Accounting Function

  

Tax accounting function is to process quantitative data that will be used to present the decision. therefore, the accounting must meet qualitative objectives. The tax accounting function is to process quantitative data that will be used to present financial statements which includes tax calculations.

   

The qualitative objectives tax accounting are as follows:

1. Relevant

2. Understandably

3. Power test / verifiability

4. Neutral

5. Timely

6. Power appeal / Comparability

7. Complete

Tax Accounting Theory

Tax accounting theory is a logical reasoning in the form of a set of Azaz or ketentua principles recognized in the tax regulations are:

• common reference framework for assessing the accounting practices

• Guidelines for the development of practices and procedures

• Can be used to describe practices that are now under way but its main purpose is to conduct a frame of reference for assessing and developing sound accounting practices.

Pernannya within the company are significant, namely:

1. Provide strategic planning and taxation (in the positive sense)

2. Provide analysis and predictions regarding the potential of corporate tax in the future.

3. Be able to apply accounting treatment on the incidence of taxation (ranging from penialian / counting, recording (recognition) of tax, and can be present in the commercial reports and fiscal reports the company.

4. Can do archiving and documentation with better taxation, as bahanuntuk examination and evaluation.

Tax Accounting Equation

Known to some equation which is used as the basic formula or a basic equation that describes the relationship between ownership and financial liabilities of a company. Tax accounting basic equation in exactly the commercial accounting namely: "property owned by the company (assets) equal to the right or claim on these assets (liabilities) plus the capital". which can be formulated in the following formula:

                  ASSETS = LIABILITIES + CAPITAL

Every economic event (transaction) companies, which are recorded in the commercial reports, berkonsekwensi and implications for the tax liability, either directly or indirectly. Inevitably, all payment and receipt of tax credits must be in journals and stated in the report based commercial financial accounting as a reduction of corporate profits.