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1、毕业设计(论文)外文资料翻译题 目: Tax Planning 院系名称： 国际学院 专业班级： 会计 Tax Planning Tax planning involves conceiving of and implementing various strategies in order to minimize the amount of taxes paid for a given period. For a small business, minimizing the tax liability can provide more money for expenses, investmen
2、t, or growth. In this way, tax planning can be a source of working capital. According to The Entrepreneur Magazine Small Business Advisor, two basic rules apply to tax planning. First, a small business should never incur additional expenses only to gain a tax deduction. While purchasing necessary eq
3、uipment prior to the end of the tax year can be a valuable tax planning strategy, making unnecessary purchases is not recommended. Second, a small business should always attempt to defer taxes when possible. Deferring taxes enables the business to use that money interest-free, and sometimes even ear
4、n interest on it, until the next time taxes are due.Experts recommend that entrepreneurs and small business owners conduct formal tax planning sessions in the middle of each tax year. This approach will give them time to apply their strategies to the current year as well as allow them to get a jump
5、on the following year. It is important for small business owners to maintain a personal awareness of tax planning issues in order to save money. Even if they employ a professional bookkeeper or accountant, small business owners should keep careful tabs on their own tax preparation in order to take a
6、dvantage of all possible opportunities for deductions and tax savings. Whether or not you enlist the aid of an outsider, you should understand the basic provisions of the tax code, Albert B. Ellentuck wrote in the Laventhol and Horwath Small Business Tax Planning Guide. Just as you would not turn ov
7、er the management of your money to another person, you should not blindly allow someone else to take complete charge of your tax paying responsibilities. In addition, as Frederick W. Dailey wrote in his book Tax Savvy for Small Business, Tax knowledge has powerful profit potential. Knowing what the
8、tax law has to offer can give you a far better bottom line than your competitors who dont bother to learn.General Areas of Tax PlanningThere are several general areas of tax planning that apply to all sorts of small businesses. These areas include the choice of accounting and inventory-valuation met
9、hods, the timing of equipment purchases, the spreading of business income among family members, and the selection of tax-favored benefit plans and investments. There are also some areas of tax planning that are specific to certain business formsi.e., sole proprietorships, partnerships, C corporation
10、s, and S corporations. Some of the general tax planning strategies are described below:ACCOUNTING METHODS. Accounting methods refer to the basic rules and guidelines under which businesses keep their financial records and prepare their financial reports. There are two main accounting methods used fo
11、r record-keeping: the cash basis and the accrual basis. Small business owners must decide which method to use depending on the legal form of the business, its sales volume, whether it extends credit to customers, and the tax requirements set forth by the Internal Revenue Service (IRS). The choice of
12、 accounting method is an issue in tax planning, as it can affect the amount of taxes owed by a small business in a given year.Accounting records prepared using the cash basis recognize income and expenses according to real-time cash flow. Income is recorded upon receipt of funds, rather than based u
13、pon when it is actually earned, and expenses are recorded as they are paid, rather than as they are actually incurred. Under this accounting method, therefore, it is possible to defer taxable income by delaying billing so that payment is not received in the current year. Likewise, it is possible to
14、accelerate expenses by paying them as soon as the bills are received, in advance of the due date. The cash method is simpler than the accrual method, it provides a more accurate picture of cash flow, and income is not subject to taxation until the money is actually received.In contrast, the accrual
15、basis makes a greater effort to recognize income and expenses in the period to which they apply, regardless of whether or not money has changed hands. Under this system, revenue is recorded when it is earned, rather than when payment is received, and expenses recorded when they are incurred, rather
16、than when payment is made. The main advantage of the accrual method is that it provides a more accurate picture of how a business is performing over the long-term than the cash method. The main disadvantages are that it is more complex than the cash basis, and that income taxes may be owed on revenue before payment is actually received. However, the accrual basis may yield favorable tax results for companies
