Differences and relations between tax accounting and financial accounting

Tax accounting is an accounting system for tax planning, tax accounting and tax declaration. Compared with financial accounting, it uses accounting principles and methods, takes the tax law and legal system as the criterion, and takes money as the unit of measurement to reflect and supervise the management activities of taxpayers' tax payable. The combination of taxation and accounting is an interdisciplinary subject.

Financial accounting refers to an economic management activity whose main goal is to provide economic information such as financial status and profitability to external investors, creditors and relevant government departments with economic interests through comprehensive and systematic accounting and supervision of the completed capital movement of enterprises.

The difference between tax accounting and financial accounting lies in:

1. From the perspective of income tax, the difference between them is manifested in two aspects from the perspective of accounting, namely, permanent difference and timing difference. Usually, there are two methods of income tax accounting, one is the tax payable method, and the other is the tax payment influence accounting method. From the perspective of tax law, income tax is usually expressed as the calculation of income tax cost. There are two kinds of deductible items and non-deductible items, which are also related to the disposal of assets, losses and gains.

2. From the perspective of value-added tax, after the promulgation and implementation of the new accounting standards, the recognition of value-added tax and tax law is probably the same, but there are differences in purpose and principle, mainly reflected in the increasingly wide scope of recognition of value-added tax in tax law.

3. Look at the difference between income tax and business tax (1). Income is the primary factor affecting the tax burden and economic benefits of enterprises.

(2) Look at the difference from the business tax. According to the Business Tax Regulations, we can know that the taxable business of business tax occurs on the day when the taxpayer receives the income from the main business or obtains the evidence of claiming the income from the main business. Taxpayers who provide taxable services, transfer intangible assets such as land use rights and sell real estate in the form of advance receipts should accrue business tax in accordance with the provisions of the tax law, while financial accounting only regards "advance receipts (or accounts receivable)" as liabilities. Only when providing services, transferring intangible assets and selling real estate meet the income recognition conditions stipulated in accounting standards,

(3) Look at the difference from the nuclide of fixed assets. Different enterprises can reasonably determine the service life and estimated net salvage value of fixed assets according to their own characteristics, and reasonably choose depreciation methods.

(4) Look at the difference with provision for asset impairment. The recoverable amount will be estimated when possible signs of impairment are found. When the recoverable amount is lower than its book value, the book value of the asset is written down to the recoverable amount, and the written-down amount is recognized as asset impairment loss, included in the current profit and loss, and the corresponding asset impairment reserve is accrued.

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The relationship between tax accounting and financial accounting;

1. Tax accounting information is based on financial accounting information. The enterprise financial accounting system has established a relatively complete database, which is mainly the basic data for compiling financial accounting reports. At present, from the practice of tax accounting in various countries, it can be seen that, for example, enterprise income tax is basically based on the accounting profit of the enterprise, and then it is comprehensively rectified according to the specific requirements of the tax law.

2. The coordination between tax accounting and financial accounting is also reflected in the financial reports made by enterprises. No matter what kind of tax accounting treatment an enterprise has, it will directly affect the financial accounting situation, which is mainly reflected in the financial report. For example, in the accounting treatment of income tax, in order to effectively deal with the difference in time, enterprises have formulated deferred income tax subjects and regarded them as the list of liabilities and assets of enterprises. Deferred income tax assets refer to taxes that should not be recognized in the current accounting but are required to be recognized by the tax law, that is, expenses are paid on schedule, but should not be included in the current expenses, and should be included in the expenses after being deferred; At the same time, deferred income tax liabilities refer to taxes that should be recognized in the current accounting, but are not required to be recognized in the tax law for the time being, that is, expenses are not paid on time, but should still be included in the current expenses and actually paid later. Deferred income tax will also have a certain impact on the income statement and cash flow statement.

To sum up, there are some differences between tax accounting and financial accounting, but they are interrelated.