What is tax accounting?

 Accounting having to do with tax accounting is specialized accounting concentrating on paying taxes and planning superiors taxes. This is to ensure compliance with local, state and federal tax laws. Tax accounting is about how transactions affect the taxable income of the company, while the financial accounting looks at the company's whole picture of financial health. Managed would be the calculating of income tax liabilities, managing the deductions, etc. Tax accounting is used by businesses and individuals to minimize tax liabilities and meet relevant tax codes.