Accounting and Finance: Analysis of Tax Issues & Accountant Role

This report delves into the complexities of accounting and finance, specifically focusing on the ever-evolving landscape of tax practices. It identifies and analyzes five key issues within this domain, critically examining the role of accountants in navigating these challenges. The report discusses the impact of fluctuating revenues on company size and the complexities surrounding salary payments in light of tax overhauls. It further explores the role of accountants in managing income for companies benefiting from government taxes. Moreover, the report highlights how accountants can engage with the community to add value to a company’s stakeholders and themselves through participating in community social responsibility, offering professional advice, and providing volunteer services. This student-contributed assignment is available on Desklib, where students can find a wealth of past papers and solved assignments to aid their studies.

ACCOUNTING AND FINANCE 1
ACCOUNTING AND FINANCE
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ACCOUNTING AND FINANCE 1
ACCOUNTING AND FINANCE
Task One
The change of taxation rules and regulation of conventional and statute laws have always
confused willing, compliant firms. Different stakeholders take part in helping the companies
adapt to the new changes. The actualization of this checks and balances lower down to the firm
accountant. He, therefore, deals with the confusion at a more significant level. We, therefore,
discuss the confusing issues and the role of the accountant in trying to solve the stalemate
Fluctuating Revenues And Company Size
The companies are supposed to pay taxes according to the size of the company regarding
revenues. The company might collect high revenues at some point and therefore be asked to
move to the high ranking companies. When the incomes are lower, it is difficult for the company
to revise the regulations, even when the company is recording losses. The accountant is therefore
required to develop revenue collecting strategies to avoid the companies’ confusion in operating
as either a small, medium or a big company (Barry 2017)
Salary Payment
When there is a tax overhaul by the government, like the 2017 Australian case (West
2017). The company has to adhere. Therefore employees are to receive individual payments.
Insurance policies are tax affected hence the company has to pay a certain percentage of every
employee. The payment can be made in cash or in saving the account. The employees can
demand their deductible income at the expense of the company leading to company confusion
caused by tax regulation. The accountant role is supposed to administer each payment to the
employees and determine universal benefits for every employee before paying their accounts.

ACCOUNTING AND FINANCE 1
Failure of any of these may lead to the prosecution of the company and conviction of the
accountant.
Income
For companies that benefit from the government taxes like medical schemes, defense
contractors, and others. The accountant should determine the kind of revenue they collect for
each changed government regulation.
Task Two
Accountants can engage with the community to add value to a company’s stakeholders,
and individual self in the following discussed ways;
Participating In Community Social Responsibility
An accountant can not only donate monetary funds to the community-based organizations
but can also offer accounting support through joining humanitarian agencies (Fairweather et al.
2017) Example of such agencies include a cure for life foundation, St. John’s ambulance, etc. a
well-established accountant could even open up their agency.
Offering Professional Advice
Offering talks regarding accounting advice to community-based organizations. This
builds the confidence of the accountant. It improves the relationship between the accountant and
the community. It can also be a platform for advertising his company agency.
Offering Volunteer Services
The accountant can offer himself to provide free accounting services to the community-
based organization. This helps to gain experience for the individual (Kaspina 2015). The
accountant also meets challenges and discover how to solve them for future occurrences. This
helps grow the stakeholder’s confidence in the accountant as it’s a show of self-responsibility.

ACCOUNTING AND FINANCE 1
References
Barry, J.M. and Caron, P.L., 2015. Tax regulation, transportation innovation, and the sharing
economy. U. Chi. L. Rev. Dialogue, 82, p.69.
Fairweather, G.W., Sanders, D.H., Cressler, D.L. and Maynard, H., 2017. Community life for the
mentally ill: An alternative to institutional care. Routledge.
Kaspina, R., 2015. Continuing Professional Development of Accounting and Auditing: Russian
Experience and Challenges. Procedia-Social and Behavioral Sciences, 191, pp.550-553.
West, A., 2017. Multinational tax avoidance: Virtue ethics and the role of accountants. Journal
of Business Ethics, pp.1-14.