Question

Be prepared to answer the following:

3. Describe and explain why research skills are important in tax accounting. Describe how to complete tax research (your description should include steps to tax research) and how to prepare a tax memo.

Answer 1

Research skills are important in tax accounting :

Research Skills : A Basic Accounting Asset
The accountant of the 21st century is more of a consultant than ever before, and needs to be able to find both "financial and non-financial information". Accountants need to know what databases and other tools they need to access, how to collect the relevant data and how to organize and evaluate the data and create recommendations. Accounting educators are responsible for teaching the skills necessary for this study to the students.

Accounting provides a wide range of specializations from tax accounting, financial accounting, and accounting management. Tax accounting requires good investigative skills and the ability to keep up with ever changing laws and guidelines. Along with hard skills, the development of good interpersonal skills is essential for tax accountants. Most of the customers won't have a tax or accounting history. To attract customers and step up the ladder, one have need to be personable and have the ability to simplify complicated financial matters in front of them.

Financial accounting : While a tax accountant should rely primarily on the tax accounting rules to make tax returns, it is also necessary to have a basis in financial accounting. If we hired to do a corporation's tax research, one have most likely need to retrieve specific financial details from financial statements. For financial statements many businesses use different forms of asset valuation than they do for tax purposes, so it is important to consider the differences between the two separartley.

General Business Knowledge Requirements : Many businesses and individuals not only want someone to prepare their tax returns while dealing with a tax accountant but someone who can also advise them on year-round tax planning. Tax objective planning practices overlap with general financial planning. It is important to have a holistic understanding of the impact recommendations would have on the organization as a whole.

Shaping the Accountants Research skills of tomorrow is a requirement for the accountants of today, and teaching students how to learn those skills should be one of the aims of the accounting programmes. The aim should be to completely incorporate research skills into the accounting curriculum with a view to helping accounting students become research qualified and expertising into their work profile.

How to complete tax research :
(Note : This description include steps to tax research)

Step 1. Establish the circumstances and the evidence.

Step 2. Determine all the issues.

Step 3. Identify the legislative, judicial and administrative power. (If Any)

Step 4. Solve questions or every issues.

Step 5. Contact Client for further proceding or doubts.

Step 6. Solving any query realised during on above mension procedure.

How to prepare a tax memo :

A tax research memo is written to advise others of the answers to tax questions and the reasons for the conclusion reached within a business. The memo will be written in the language of professional industry.
In Simple terms,a one-sentence answer to the question set out in the section on topic relating to tax advise.

When research for a client's tax issue, we write a memo to the file summarizing our work so that it can be read later by people in our firm if appropriate.
Additionally, we write a letter detailing our conclusions to the company.
This role gives us the opportunity to apply what we have learned about tax analysis and writing to various third paarties as well. Now, We write tax memo.
A potential overview of these headings of tax memo may include,
1. Relevants facts,
2. Specific issues,
3. Conclusions Along with Support,
4. Further Action to be taken.

Use good professional writing style in this task, study our documents/notes and apply what we've learned about direct and indirect messages.

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