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What difference between financial accountant and tax accountant?

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Question added by abdulrahman osman
Date Posted: 2013/11/05
Nitin Gupta, ACA
by Nitin Gupta, ACA , FP&A , Rockwell Automation

Financial Accountant

Financial accountant is mostly known as accrual-based accounting. He is responsible for recording sales revenues and purchase expenses when they are earned and incurred, regardless of whether cash from sales has been collected and cash for purchases has been paid. To determine a sale or purchase transaction date for recording, companies need to ascertain the completeness of a sale or purchase. .

Tax Accountant

Tax accounting often is referred to as cash-based accounting, and thus focuses primarily on actual cash receipts and cash payments, rather than their related sale or purchase transactions. Companies don't record a sale or purchase transaction at the time of the transaction until cash is received or paid later. Small businesses with annual sales of $5 million or less may elect to use the tax accounting to help them better manage their cash positions, which hold more significance to a small business's survival than a larger company.

Mohammed Salim Allana
by Mohammed Salim Allana , Compliance and Assurance Manager , United Arab Bank

Financial accountant is the General practioner of Finance, accounts and auditing (knowledge of GAAP)

 

While Tax accountant is the specialization about Taxation rules, laws and regulatory standards around the globe.

Tax accountant needs to understand the different typology such as deffered / advance tax, TDS, PAYE, FATCA and different tax laws applicable in various jurisdictions.

Khalid Noor
by Khalid Noor , Accounting Manager , FedEx

Tax Accountant is not a speciality, actually its a mix of taxation expert cum accountant. Accoutnat has its own rules so as taxation. But how to calculate expense/liability/income for tax purposes is the job of tax accountant.

mukkur srinivasan varadhan
by mukkur srinivasan varadhan , Chartered Accountant , Chartered Accountant in practice

Financial Accountant is applying the accouting concepts, conventions, Policies, applicable Accounting Standards.TaxAccountant apart from applying the Financial Accounting standards, concepts, conventions, Policies posseses the applicable tax laws and relevant rules and applies for the  exclusive purpose of taxation.