Tax accountants help individuals and businesses prepare tax and file tax returns to meet all legal standards. Also they use their knowledge to help clients to increase savings and avoid penalties. Some tax accountants hold permanent in house positions with businesses. Others work for payroll service providers or accounting firms.
Government agencies, insurance companies, and financial services firms also hire tax accountants.
Qualifications
A bachelor’s degree in accounting is the basic qualification to become a tax accountant. A Certified Public Accountant license is generally required for higher-level positions. A tax accountant will be required to complete a master’s degree in some industries. Short-term certification programs will help to gain knowledge and practical skills for tax accounting.
Skills Required For Tax Accountant
Organisational Skill
A tax accountant deals with a huge amount of information. In Order to perform their tasks without any delays or errors that can develop into serious issues such as unpaid tax obligations which results in penalties, tax accountants need to be well organized. To maintain copies of receipts, statements, and other financial records for easy retrieval, you need a good organisational skill.
Attention To Details
You need to pay attention to every word while working with tax laws. A simple mistake may cause work full of errors and this may end up with unsatisfied clients. To make accurate reports you need to have deep attention for everything related to tax.
Communication Skills
Communication skill is a must needed skill for a tax accountant. You may need to communicate with clients and colleagues. Proper communication helps you to convey your message. You need social and interpersonal skills to be able to negotiate issues well with the tax agencies on behalf of clients. Also you may be good at written communication as you may need to write complaints and lawsuits.
Problem Solving Skills
A tax accountant needs to solve a wide range of problems for their clients. This has to be done properly through critical thinking. You should always have the mindset that you will be given tasks and problems to solve, and you will be watched as you work.
Creativity
Creativity helps you to come up with innovative ideas and solutions. Become creative you need to think out of the box. Most times, clients’ problems need special attention and a certain amount of creativity.
Credibility
Credibility comes in the form of education or certification and also you need to make sure to stay current with their requirements. Having strong technical knowledge in all federal, state, local, and international tax laws, is significant. Your tax accounting skills must be up to date. You should be the one everybody relies on for information concerning tax accounting. Your credibility can be seen when you work under a licensed company that is recognised by the relevant authorities.
Responsibilities
- Prepare tax returns, payments, necessary paperworks, and reports.
- Assess and research difficult tax issues to identify solutions.
- Manage and maintain the company’s tax databases.
- Comply with regulations by forwarding required information to federal, state, and local authorities.
- Offer support and guidance during audits.
- Evaluate tax regulations and suggest policies that diminish tax burden.
- Keep track of industry trends and changes related to taxes.
- Prepare accurate quarterly and annual tax reports.
- Making sure clients meet quarterly and annual tax deadlines.
Professional Certifications
Certified Public Accountant (CPA)
The Certified Public Accountant (CPA) certification is one of the most important certifications for accountants. CPA programs cover topics such as auditing, attestation, financial accounting and reporting, business environment and concepts, as well as regulation.
Chartered Financial Analyst (CFA)
The main focus of the Chartered Financial Analyst (CFA) is portfolio management and investment analysis. It covers topics like ethics, quantitative methods, economics, financial reporting and analysis, equity, fixed income, portfolio management, derivatives, and alternative investments.
Certified Management Accountant (CMA)
Certified Management Accountant (CMA) certification is an accounting certification that is offered by the Institute of management accountant. The CMA certification looks into financial accounting and mixes in elements of strategic management. The certification is concerned with teaching the underlying factors behind a company’s financials and what strategic business decisions can be derived from them.
Chartered Certified Accountant (ACCA)
The Chartered Certified Accountant (ACCA) designation is globally recognised accounting certification. It mainly focuses on topics such as financial management, reporting, taxation, auditing, leadership, and ethics.
Job Opportunities For Tax Accountant
Payroll Specialist
A payroll specialist manages a company’s payment process. The responsibilities of a payroll specialist are ensuring compliance with federal, state and local tax regulations, including remittance of payroll taxes. They collect, record and verify employee attendance and hours worked to compute wages commissions and deductions.
Tax Preparer
Tax preparer is responsible for managing an individual’s or company’s federal, state and local income tax returns. Their duties are to identify legal exemptions to reduce tax burdens, reporting tax liabilities and advising clients of changes in tax regulations. These professionals collect relevant financial records, such as pay stubs and income statements and input this data into a tax return software or database.
Auditor
Auditors are the ones who help individuals, organizations and government departments analyze financial processes and documents for compliance with tax regulations. They use tax laws to examine auditing procedures, prepare tax audit reports and collect unpaid taxes. Also they are responsible for evaluating tax refunds, recommending strategies for tax management and researching tax laws and auditing practices. Also they may determine taxable income, applicable tax deductions and nontaxable expenses.
Tax Specialists
Tax specialists are those who manage quarterly and annual federal tax and international tax compliance. They are responsible for preparing the process and maintaining all paperwork related to the accounting cycle. Other duties include researching tax laws, explaining best practice options to clients and assisting in IRS and state audits.
Tax Associates
Tax associates review financial documents to ensure compliance with tax laws and IRS regulations. Their duties may include using software to file taxes, validating tax documents and keeping tax files organized. These professionals might research their tax issues, assist with tax audits and consult with clients to review their tax information and address questions or concerns.
Tax Accountant
Tax accountant is responsible for helping individuals and businesses file taxes according to the appropriate legal guidelines. Their duties include maintaining the company’s tax database, resolving tax issues from incorrect filings and identifying legal tax savings.
Importance Of Practical Knowledge
As every other professional tax accountant also needs practical knowledge to enhance your career. The chances for hiring candidates with analytical and communication skills as more as they are competent.
Practical training programs make students attain meaningful professional education. You can develop your key skills. Practical training helps you to sharpen your skills and it gives a clear idea about your career. Practical training also helps you to perform well and increase their career options.
FAQ
- What is the job outlook for a tax accountant?
Since the economy is growing day by day, there is always a demand for a tax accountant. The Bureau of Labor statistics projects the job outlook for tax accountants at a 6% increase.
- What skills should a tax accountant have?
A professional tax accountant should have following skills
- Strong knowledge of tax laws and accounting best practices.
- Time management and organizational
- Attention to details
- Verbal and written communications
- Statistical and data analysis
- Critical thinking and problem solving
- What is a deterred tax?
Deterred tax asset is when the tax amount is paid or the amount is carried forward.
- What is GST?
Goods and Service Tax also known as GST is the largest indirect tax reform in India. The seller charges GST to the consumer on the goods or service he provides.
- What is TDS?
TDS stands for Tax Deducted at Source. It is a concept that aims at collecting tax at every source of income. TDS is shown in the asset section on a balance sheet.