Tax accounting is about creating tax returns and setting up plans for paying future taxes. The rules for this treatment are set by tax authorities, not by accountants. Following tax accounting helps businesses adhere to rules, lower their liability and avoid receiving penalties. Part of personal finance is setting aside money for income, payroll and sales taxes. Correct tax accounting allows businesses to use deductions and credits properly and to accurately list their taxable income. By hiring a professional tax accountant, businesses find it much easier to stay orderly at tax season and handle decisions throughout the year.