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Accounting is defined by the AICPA as “The art of classifying, recording, and summarising in a substantial manner and in terms of transactions, money and cases which are, in part at the least, of financial type, and interpreting the effects thereof.

Accounting is thousands of years old; the earlier accounting records, which date back more than 7,000 years, were found in the Middle East. The people of that time relied on primitive accounting techniques to record the development of crops and herds. Accounting evolved, improving over the years and advancing as business advanced.

In United States, tax accounting relates to accounting for tax purposes in the U.S… Unlike most countries, the America has a comprehensive set of accounting standard for tax purposes, prescribed by tax law, which are separate and distinct from Generally Accepted Accounting Principles.

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