In the United States, companies can maintain two separate sets of books for financial and tax purposes. Since financial and tax accounting rules differ, temporary differences can arise between the two ...

Accrual accounting, a system of accounting designed to account for sales and expenses in the period they were incurred, allows certain expenses, assets, and sales to be deferred to the next accounting ...

Deferred-tax assets are created when a company's recorded income tax (what it reports in its income statement) is lower than that paid to the tax authority. It's usually a good thing to find on a ...

When small business owners overpay taxes for the year or delay current taxes to the future, the balance sheet might appear off. Your balance sheet must give an exact description of your company's ...

Our Federal Tax Group discusses the tax treatment of deferred revenue or advance payments in M&A transactions. The tax treatment of deferred revenue differs from the treatment for financial accounting ...