Accounting is a complex discipline and practice, spanning academia and business, and standard accounting procedures vary by industry and even by accepted national standards. That said, both governments and private industry have made a significant effort toward harmonization of accounting standards in the last few decades. One of the major results of that effort is the emergence of a set of international accounting practices called the Generally Accepted Accounting Principles (GAAP), to which companies must adhere.

gaap accounting vs. tax accounting

The Accounting Info website defines deprecation as "a systematic and rational process of distributing the cost of tangible assets over the life of assets." There are GAAP (generally accepted accounting principles) that state which depreciation methods are acceptable. The three main GAAP depreciation methods are straight line depreciation, declining value depreciation and sum-of-the-years'-digits depreciation. MACRS is also an acceptable depreciation method, but it is not as much an accounting method as it is a tax concept.

gaap accounting vs. tax accounting

Cost accounting is an input into management accounting. Cost accounting focuses on understanding and optimizing costs in a complex business environment. Management accounting focuses on the bigger picture of using data to make planning and strategy decisions for the company.

gaap accounting vs. tax accounting

Most accountants find employment in either a corporation or public accounting firm. After years of experience however, some move into management, overseeing the work of other accountants. A handful of these managers move on to senior-level management, which offers the greatest potential for a lucrative salary.

gaap accounting vs. tax accounting

Accounting is a career field in which individuals work directly for companies or in the professional field completing various financial services. While traditional training for accounting is typically a college degree, hands-on training is another option. This type of training can help both new and experienced accountants learn various concepts.

gaap accounting vs. tax accounting