What is the difference between accounting and taxation?

As an entrepreneur, your number one goal is undoubtedly to make sure that your business remains financially healthy so that it can continue to prosper. To do so, it’s important to build a solid organizational foundation when you start your business.

When it comes to working with professionals to ensure that your company’s finances start off on the right foot, many people hesitate between accountants and tax specialists.

What is the difference between accounting and taxation? Do these fields complement each other well, and are their professionals in a position to help companies develop sound financial strategies?

Find out in this article.

What is accounting?

Accounting is a broad field that is essential to the administration of any business. Accounting includes a variety of practices that help a company manage its finances.

Every company has its own unique financial situation and needs. Therefore, accountants need a broad range of knowledge and skills in order to support their clients properly.

This expertise can include bookkeeping, preparing financial statements, developing business strategies, assistance with the process of selling a business, and more.

There is also a branch of the field called cost accounting, which has two main functions. First, it determines and classifies the costs of producing and distributing the goods and services a company provides. Second, it produces projections of operating expenses and revenue and analyzes potential discrepancies.

As you can see, it is essential for companies to get help from accounting experts right from the beginning.

What is taxation?

Taxation is a field that deals with all aspects of federal and provincial taxes. Tax experts specialize in tax law and can help companies optimize their corporate tax returns while remaining in compliance with tax laws.

A tax support service can help companies in many other ways as well. Tax advisors can help you start your business, plan your fiscal year-ends, manage audits, etc.

Taxation should be an integral part of every company’s business strategy.

Do these fields complement each other?

Accounting and taxation go hand in hand. Before implementing tax strategies, businesses should check with accounting specialists to make sure they will be effective in the short and long term. And accounting can greatly benefit from the input of a tax expert in order to improve a business’s finances.

Therefore, it is in every company’s best interest to get help from both accounting and taxation specialists so that they can work together to find solutions that will lead to success.

T2inc: corporate accounting and taxation specialists in Quebec

Accounting and taxation are distinct fields, but both are equally important when it comes to running a business. By relying on the expertise of accountants and tax specialists, you can rest assured that your corporate finances are in good hands.

Want to do business with experienced and qualified corporate tax accountants? The T2inc team helps Quebec SMEs achieve the success they deserve.

Don’t hesitate to ask us for a free quote!