Dan Caplinger has been a contract writer for the Motley Fool since 2006. As the Fool's Director of Investment Planning, Dan oversees much of the personal-finance and investment-planning content published daily on Fool.com. With a background as an estate-planning attorney and independent financial consultant, Dan's articles are based on more than 20 years of experience from all angles of the financial world. Follow @DanCaplinger Follow @DanCaplinger

By 1880, the modern profession of accounting was fully formed and recognized by the Institute of Chartered Accountants in England and Wales. This institute created many of the systems by which accountants practice today. The formation of the institute occurred in large part due to the Industrial Revolution. Merchants not only needed to track their records but sought to avoid bankruptcy as well.


Consider the financial effect of his choosing to trade as a sole trader or, alternatively, through a company, paying him a salary of £12,500 and then the largest possible dividend, not giving rise to a loss of capital. Assume that accounting profits equal taxable trade profits and that alan will be the sole employee and a director of the company. Use 2017/18 tax rates.

A medical equipment manufacturer receives an order for equipment to be shipped to a hospital. The order is placed on May 1 and the equipment ships June 1. Payment is received on August 1. The medical equipment manufacturer records the revenue on May 1 – the date the sales contract is received (or accrued) – rather than on August 1 when the payment is received.


The first published work on a double-entry bookkeeping system was the Summa de arithmetica, published in Italy in 1494 by Luca Pacioli (the "Father of Accounting").[21][22] Accounting began to transition into an organized profession in the nineteenth century,[23][24] with local professional bodies in England merging to form the Institute of Chartered Accountants in England and Wales in 1880.[25]
Finally, a few aspects of gift and estate tax planning will see some changes in 2019. The federal estate tax lifetime exclusion amount will rise to $11.58 million in 2020, up from $11.4 million in 2019. However, annual gift tax exclusion amounts of $15,000 remain in place and unchanged for 2020, and the traditional exemptions from gift and estate tax -- including transfers to spouses and charities as well as amounts paid toward educational or medical costs -- are also still available.
There are several other retirement plans that an individual may use to help reduce tax liability. 401(k) plans are popular with larger companies that have many employees. Participants in the plan can defer income from their paycheck directly into the company’s 401(k) plan. The greatest difference is that the contribution limit dollar amount is much higher than that of an IRA. 
It was a pleasure to work with Daphene on my taxes this year. Not only were we able to complete my taxes the same day that I got in contact with her, she also taught me a lot about accounting and taxes in general. As a novice when it comes to preparing tax, Daphene walked me through each part of the tax return, taking her time to explain what each part meant, and answering every single question that I had for her. Even after the preparation concluded, Daphene still reached out to me to let me know that she would be of service if I ever had questions, and continuously updated me with the status of my return. She's definitely a pro who I intend on going back to next year. I HIGHLY recommend her!
Just as managerial accounting helps businesses make decisions about management, cost accounting helps businesses make decisions about costing. Essentially, cost accounting considers all of the costs related to producing a product. Analysts, managers, business owners and accountants use this information to determine what their products should cost. In cost accounting, money is cast as an economic factor in production, whereas in financial accounting, money is considered to be a measure of a company's economic performance.
×