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Current Issues in the Business Accounting Field
One of the current issues in the business accounting field is the complexity of tax laws
and regulations. With the constant changes in tax laws, it can be difficult for businesses to stay
up to date. This can lead to businesses incurring large fines or penalties due to not being in
compliance with the current laws (
Hoppe et al., 2021). This is an important issue as it affects the
financial well-being of businesses and their ability to accurately report their income and
expenses. The complexity of tax laws and regulations is a major issue in business accounting as
it has a direct impact on the financial health of businesses.
The complexity of the laws can create a major burden for companies trying to comply
with the laws, as they are often required to keep up with changing laws and regulations (
Hoppe
et al., 2021). This can be a difficult task, leading to potential fines or penalties if the laws are not
followed correctly. Additionally, the complexity of the laws can make it difficult for businesses
to accurately report their income and expenses (
Hoppe et al., 2021). This can lead to inaccurate
financial statements and can put a business at risk of being audited by the IRS and other
agencies.
The complexity of tax laws and regulations also affects businesses in other ways. One
way is that it can cause businesses to spend an excessive amount of time and resources trying to
stay compliant
with the changing laws (
Jacquot, Taxand, & Mispelon, 2018). This can lead to
businesses losing out on potential profits or opportunities because they are not able to focus on
their core business operations. Additionally, businesses can be put at a disadvantage if they are
not able to keep up with the changing laws, as competitors who are able to stay up to date may
be able to take advantage of certain tax credits or other benefits.
