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January 25, 2008, Newsletter Issue #63: Accounting and Taxes Explained
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Tip of the Week
The accounting and tax services field are interrelated due to the fact that tax professionals must first have a solid foundation in the accounting field. They need to understand the financial side of the business to properly assess how taxes can affect each of the various sections of business. They need to be spot trends, know account averages, and be able to explain the difference. This comes from having an accounting background.
A good example of one having a solid foundation in accounting while also working in taxes is found in a CPA Tax Consultant. This individual has a thorough knowledge base about tax issues and how it affects their clients. They study the tax implications, make recommendations, and provide methods for tax savings (hence the consulting). The CPA licensure can only be obtained after earning an accounting degree.
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