As a business actor, bookkeeping and recording are some of the tax accounting activities which form the basis for taxpayers to calculate the amount of tax owed. Then, what is the difference between the two? Before discussing further the differences between accounting and tax recording, it is better if we first look at the similarities between the two. Bookkeeping and recording are aimed at facilitating taxpayers in fulfilling tax obligations and knowing the financial position of the results of business activities or independent employment. In the meantime, you can also make your bookkeeping process becomes easier by hiring the trusted Mobile Bookkeepers Sydney.
Also, all forms of books, records, and documents that form the basis of bookkeeping or recording and other documents resulting from data processing from bookkeeping are managed electronically must be kept for 10 years in some countries, such as at the place of activity or residence of individual taxpayers or in places of the corporate taxpayer.
Now, after knowing the similarities, here are some basics that differentiate accounting and tax recording.
Those who are obliged to keep bookkeeping are corporate taxpayers and personal taxpayers who carry out business activities or independent work.
Meanwhile, those who are obliged to keep records are individual taxpayers who carry out business activities or independent work with a gross turnover in one year less than the amount determined by the government and individual taxpayers who do not carry out business activities or independent work
In terms of requirements, bookkeeping is maintained based on adhering to the principles and using an accrual system or a cash system. Also, bookkeeping in foreign languages and currencies other than the nation’s can be maintained by taxpayers after obtaining permission from the Minister of Finance.
Bookkeeping contain records such as liabilities, capital, income, expenses, and assets as well as purchases and sales s so it’s easy to calculate the tax.
Meanwhile, recording consists of data that is collected regularly on gross revenue and/or gross income as a basis for calculating the amount of tax payable. This includes income that is not subject to tax and/or which is subject to final tax.