Tax Accounting vs. Managerial Accounting with Shannon Sand

Understanding your farm's finances is critical to making sound decisions and positioning your operation for success. But the accounting methods used for tax purposes don't always provide the information needed to properly manage your business. Our guest today, Shannon Sand, is here to explain the key differences between tax accounting and managerial accounting. Shannon is an agricultural economist with the University of Nebraska specializing in farm management. In a new article up on cap.unl.edu, she lays out how tax accounting focuses on external reporting and follows rules aimed at calculating taxable income. In contrast, managerial accounting looks inward, capturing the data needed to analyze production costs, cash flows, capital investments, and overall profitability. Read more at https://cap.unl.edu/finance/tax-accounting-vs-managerial-accounting-what-difference-and-why-does-it-matter.