TurboTax CD/Download products: Price includes tax preparation and printing of federal tax returns and free federal e-file of up to 5 federal tax returns. Additional fees apply for e-filing state returns. E-file fees do not apply to New York state returns. Savings and price comparison based on anticipated price increase. Prices subject to change without notice.
Financial accounting is the branch of corporate accounting that identifies, records, and analyzes financial information for people outside of the company (such as investors). Information provided by financial accounting includes quarterly and annual income statements, balance sheets, and cash flow statements, and statements of retained earnings.  The standards of financial accounting differ whether under generally accepted accounting principles (GAAP) in the U.S. or the International Financial Reporting Standards (IFRS).
No matter how complicated or simple your personal situation is, it's never too early to think about tax planning for the coming year. By getting an early start on the 2020 tax year and using and referring to this guide to 2020 taxes throughout the year, you'll be in much better shape to take advantage of all the favorable provisions that can result in a lower tax bill this year and beyond.

At least a bachelor's degree in accounting or a related field is required for most accountant and auditor job positions, and some employers prefer applicants with a master's degree.[54] A degree in accounting may also be required for, or may be used to fulfill the requirements for, membership to professional accounting bodies. For example, the education during an accounting degree can be used to fulfill the American Institute of CPA's (AICPA) 150 semester hour requirement,[55] and associate membership with the Certified Public Accountants Association of the UK is available after gaining a degree in finance or accounting.[56]
Organizations in individual countries may issue accounting standards unique to the countries. For example, in the United States the Financial Accounting Standards Board (FASB) issues the Statements of Financial Accounting Standards, which form the basis of US GAAP,[1] and in the United Kingdom the Financial Reporting Council (FRC) sets accounting standards.[53] However, as of 2012 "all major economies" have plans to converge towards or adopt the IFRS.[11]
Organizations in individual countries may issue accounting standards unique to the countries. For example, in the United States the Financial Accounting Standards Board (FASB) issues the Statements of Financial Accounting Standards, which form the basis of US GAAP,[1] and in the United Kingdom the Financial Reporting Council (FRC) sets accounting standards.[53] However, as of 2012 "all major economies" have plans to converge towards or adopt the IFRS.[11]
The fifth principle of accounting is the principle of objectivity. Objectivity means that accounts are backed up by evidence (e.g. sales receipts, invoices, purchase orders). The medical equipment manufacturer follows the standard of objectivity by maintaining copies of sales orders while the hospital maintains objectivity by providing their accountant with receipts for the purchase.
Interest on mortgages taken out after Dec. 15, 2017 of up to $750,000, or $375,000 if you're married filing jointly, or $375,000 if you're married and filing separately, provided that the funds are used to "purchase, construct, or make substantial improvements" to your primary or secondary residence. The maximum amount for mortgages originated on or before December 15, 2017 is $1,000,000, or $500,000 for married filing separately.
The Tax Cuts and Jobs Act (TCJA) upended tax rules to a significant extent when it went into effect in 2018. The Internal Revenue Code used to provide for personal exemptions that could further decrease your taxable income, but the TCJA eliminated these exemptions from the tax code. The rules for deductions, adjustments to income, and tax credits cited here are applicable beginning in the tax year 2018 and going forward. They do not necessarily apply to tax years 2017 and earlier.
A doctorate is required in order to pursue a career in accounting academia, for example to work as a university professor in accounting.[57][58] The Doctor of Philosophy (PhD) and the Doctor of Business Administration (DBA) are the most popular degrees. The PhD is the most common degree for those wishing to pursue a career in academia, while DBA programs generally focus on equipping business executives for business or public careers requiring research skills and qualifications.[57]
401(k) contribution limits are rising in 2020. Those younger than 50 can contribute up to $19,500 toward a 401(k) or similar plan in 2020, up $500 from last year's $19,000. Those 50 or older get to put up to $26,000 into a 401(k), up $1,000. With no income limits applying to 401(k)s, those whose employers offer these plans can save a lot toward retirement.

The year 2001 witnessed a series of financial information frauds involving Enron, auditing firm Arthur Andersen, the telecommunications company WorldCom, Qwest and Sunbeam, among other well-known corporations. These problems highlighted the need to review the effectiveness of accounting standards, auditing regulations and corporate governance principles. In some cases, management manipulated the figures shown in financial reports to indicate a better economic performance. In others, tax and regulatory incentives encouraged over-leveraging of companies and decisions to bear extraordinary and unjustified risk.[72]
Tax planning is the analysis of a financial situation or plan from a tax perspective. The purpose of tax planning is to ensure tax efficiency. Through tax planning, all elements of the financial plan work together in the most tax-efficient manner possible. Tax planning is an essential part of an individual investor's financial plan. Reduction of tax liability and maximizing the ability to contribute to retirement plans are crucial for success.
TurboTax CD/Download products: Price includes tax preparation and printing of federal tax returns and free federal e-file of up to 5 federal tax returns. Additional fees apply for e-filing state returns. E-file fees do not apply to New York state returns. Savings and price comparison based on anticipated price increase. Prices subject to change without notice.
Managerial accounting uses much of the same data as financial accounting, but it organizes and utilizes information in different ways. Namely, in managerial accounting, an accountant generates monthly or quarterly reports that a business's management team can use to make decisions about how the business operates. Managerial accounting also encompasses many other facets of accounting, including budgeting, forecasting and various financial analysis tools. Essentially, any information that may be useful to management falls underneath this umbrella.
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