Accounting Industry
The accounting industry is a composition of two separate but linked fields, accounting and tax. Each of these fields has its own rules and regulations by which the data must be prepared and presented. The accounting field focuses on accurate representations of the company or organization's financial position. Their goal is to ensure the stakeholders of a company that the information they receive is inerrant and complete. The tax field focuses on the method by which we recognize income and expenses specifically regarding and impacting tax liabilities. Their goal is to maintain the integrity of the tax system as it is laid out in congress, attempting to keep the system fair and productive.
The principle governing bodies of the accounting field are the Financial Accounting Standards Board (FASB) and the American Institute of Certified Public Accountants (AICPA). These two organizations develop the guiding principles and standards that govern the accounting field. These rules and regulations are compiled under one publication known as GAAP or the Generally Accepted Accounting Principles. As an industry we then use this as our guide in the compilation of financial statements and reports.
The tax field in Oregon has two governing organizations the Internal Revenue Service (IRS) and the Oregon Department of Revenue (ODR). The IRS develops and maintains the Federal tax system and the ODR does the same for the Oregon tax system. The rules and regulations for these systems are given to us in the IRC or Internal Revenue Code and the OAR or Oregon Administrative Rules. In addition to the rules these organizations provide for us the forms to be used in filing and reporting our yearly financial transactions.
For your assistance or curiosity we have provided links to the previously mentioned organizations websites on the Links page of our website. These are great sources of information and can be used to further enlighten you as to the framework of the accounting industry.
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- Salem, OR 97302
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