Where Book Accounting Meets Tax Accounting

Key Takeaways

• Companies must present their profits and tax liabilities to shareholders in different ways based on accounting standards (FASB) and the IRS code
• Accounting and finance professionals responsible for financial reporting may not be aware of the unique challenges to tax departments, ranging from focusing on intercompany transactions to dealing with tax audits
• While tax reporting and financial reporting teams differ, they both play an important role in the quality of corporate financial statements