What is the difference between tax accounting and managerial advisory

QUESTION

What is the difference between tax accounting and managerial advisory services?

What will be an ideal response?

ANSWER

Answer: In tax accounting, the CPA concentrates on preparing tax returns and doing tax planning; however, when he or she provides management advisory services, specialized accounting services are provided to help business managers resolve various kinds of problems.
Explanation: Tax accounting focuses specifically on tax preparation and tax planning, with the goal of minimizing a firm’s taxes to the extent legally allowed. Managerial accounting has a wider scope and is concerned with preparing accounting information and analyses for decision makers within an organization.