Accounting, taxation and finance management: what’s the difference?

4 mins

By Panama Harris, June 17,2022

🔔 Important: don’t mistake tax charges with social charges, which feed into social safety nets like health insurance, family allowances, basic and supplemental retirement and parental leave.

Key learnings
  • Accounting and taxation are very different from one another.
  • Accounting records the flow of money in a company, whether it’s revenue (money entering) or costs (money leaving)
  • Taxation refers to the legislative procedure that handles collecting taxes (esp. Revenue Tax, VAT and CFE)
  • Both accounting and taxation fall under the umbrella of finance management.
  • Overall, finance management is handling your company’s resources effectively. Accounting serves you by giving you better visibility over the flow of money and allowing you to better analyze your finances. Taxation should be taken into account when setting a budget, but it can be applied in a way that supports the growth of your business.

ABOUT THE AUTHOR
Panama Harris
Panama is a Copywriter at Qonto with over 15 years' previous experience working as a freelancer around the world. Her mission is to take the mystery out of entrepreneurship and make it more accessible.
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