Question
Explain why the needs of the tax accountant are different than the needs of the financial accountants. Why does this lead to a tax data
Explain why the needs of the tax accountant are different than the needs of the financial accountants. Why does this lead to a tax data warehouse or tax data mart?
Tax accounting follows a different set of rules than financial accounting. For example, each property has its own tax basis, which might be very different from the net book value tracked by financial accountants. Tax requires the direct writeoff of bad debts whereas financial accounting (GAAP) requires an estimate and an allowance of doubtful accounts. This leads to tax needing to have control and ownership over its own data.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started