Account for taxes

Trigger: The close of a financial reporting period or the approach of a statutory tax filing deadline initiates the tax accounting cycle.

1. Gather financial data and taxable transaction records
2. Calculate current and deferred tax liabilities
3. Record tax provisions and journal entries in the general ledger
4. Prepare statutory tax returns and supporting schedules
5. Remit tax payments to appropriate governmental authorities
6. Reconcile tax accounts and retain compliance documentation

Outcome: Tax liabilities are accurately calculated, recorded in the financial system, and statutory returns are filed and paid in compliance with regulations.