TIPS60 - Accounting - Managerial vs. Tax methodologies

Here is another of our videos offering tips and inisights into the business of photography. a transcript of the video is included after the jump.

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TRANSCRIPT:Here are a few thoughts on managerial accounting versus tax accounting. I'm John Harrington. Managerial accounting is a system that tells you why you spend your money on what you spend it on as opposed to tax accounting which is a system that tells you what you spend your money on. Tax accounting is something that your accountant is going to use, but managerial accounting is something that you want to use in your business to understand why and where the costs are associated with different products and services that you offer. You want to work with your accountant on transitioning your accounting system from managerial to tax accounting when you're trying to deal with your tax return and that's why having a great accountant is important. But, I would strongly encourage you to check out this URL here down below. It's a great PPofA resource, Professional Photographers of America, on the differences between managerial and tax accounting. Why you should use managerial accounting and the benefits of doing so versus the importance of tax accounting. So check it out.

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