The farming industry takes a ton of effort especially in areas that are known for lucrative harvests. When the season begins, the farmer must lay down soil and seeds with hopes of yielding an abundance of vegetables and fruits. Some of his crop could be sold at the local market or he could keep them for himself. On the final day of harvest, the farmer decides to take an inventory to calculate how much food he has to sell in order to make a profit. After factoring all of his expenses over the course of the harvesting season he realizes that he will make a heap of profits.
Similarly, tax provisions are screenshots to figure out how much money a corporation or a farmer makes over a specific period. Companies will create tax provisions to estimate earnings before the fiscal year comes to an end. Understanding profits by preparing a tax provision allows both the corporation and the farmer to calculate how much they may have to pay in taxes at the end of the year.