The following article discusses the career path of Tax Accountant. Learn about how to become one, education requirements, job duties, traits and qualities, national salary outlook as well as top national employers of Tax Accountants.
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Job Duties
Tax accountants specialize in preparing and submitting documents relating to their clients’ tax returns. These clients may be companies or individuals. They also develop tax strategies to ensure that clients do not pay more tax than they need to. They also handle audits and develop taxation strategies. They are experts in tax laws and can explain what these mean to their clients.
They prepare and file yearly tax reports, develop presentations on tax situations, provide advice on minimizing liability, stay up to date with tax regulations, and so on. They ensure that clients are fully compliant with relevant tax laws. They must therefore understand government regulations, and also various business concepts.
Typically, they work during regular business hours. During tax season, however, they often have to render overtime work. They usually work in offices, together with their clients and senior management teams.
Other duties of the tax accountant are:
- – To prepare tax reports and tax returns, research and analyze complex tax issues, and maintain records
- – To ensure support is provided if an audit takes place
- – To ensure all federal and state regulations are complied with
- – To stay abreast with tax regulations, helping clients minimize their tax burden through better strategies
Where We Work
According to the U.S. Bureau of Labor Statistics, there were 1,397,700 accountants and auditors in 2016. The largest employers of these professionals are:
- Accounting, tax preparation, bookkeeping, and payroll services: 25%
- Government: 8%
- Finance and insurance: 8%
- Management of companies and enterprises: 7%
- Self-employed workers: 7%
How to Become
Tax accountants need to have a background in finance and taxation law. They must be able to convey complex taxation language in an easy to understand manner. A bachelor’s degree in a field relating to finance and accounting is recommended, particularly with a tax law concentration. Master’s degrees are often preferred, particularly because this enables an accountant to become a Certified Financial Planner, Enrolled Agent, or Certified Public Accountant.
Those who need to file reports with the Securities and Exchange Commission (SEC) must be a Certified Public Accountant (CPA). This means that they have to complete education beyond their bachelor’s degree and pass the CPA exam. Most tax accountants are expected to be a CPA, which is why most have the master’s degree as this enables them to meet and exceed the 150 semester hours of coursework requirement for the certification examination. The CPA examination is offered by the American Institute for Certified Public Accountants (AICPA). CPA certification must be maintained through continuous education.
Tax accountants usually start their career at an entry level position and then grow into supervisory roles, becoming managers and eventually even partners. Some start as junior internal auditors or cost accountants, for instance, rising through the organization over time. It is also common for tax accountants to move between internal auditing and management accounting so that they get more varied experiences.
Education Requirements
A bachelor’s degree is usually the minimum requirement, with a major in accounting, finance, or related field. Those with a master’s degree are usually in higher demand, particularly those with a master in business administration (MBA) with an accountancy concentration.
Aside from the CPA, other certifications can also be beneficial for someone working as a tax accountant, including:
– Certified Management Accountant (CMA) offered by the Institute of Management Accountants
– Certified Internal Auditor (CIA) offered by the Institute of Internal Auditors (IIA)
– Certified in Control Self-Assessment (CCSA) offered by the IIA
– Certified Government Auditing Professional (CGAP) offered by the IIA
– Certified Financial Services Auditor (CFSA) offered by the IIA
– Certification in Risk Management Assurance (CRMA) offered by the IIA
– Certified Information Systems Auditor (CISA) offered by ISACA
– CPA Accredited in Business Valuation (ABV) offered by AICPA
– CPA Certified Information Technology Professional (CITP) offered by AICPA
– CPA Personal Financial Specialist (PFS) offered by AICPA
Traits & Qualities
The most effective tax accountants have the following traits to some degree or other:
– Strong analytical skills
– Excellent communication skills, both verbal and written
– Detail oriented
– Excellent mathematical skills
– Strong organizational skills
Minimum Education
Bachelor’s Degree
The national average salary estimate for Tax Accountant was $65,728. This number is estimated from over 1,137,436 employees, users past and present job advertisements from Indeed.com. This equates to an hourly salary of $34.23 and monthly of $5,477.
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$23,000
$130,000
The following section lists Tax Accountant salaries in each state around the country. The figures are based on the total number of job postings through Indeed.com. For example, South Dakota had the largest quoted salary of $84,534 while Rhode Island had the smallest quoted salary of $35,212.
According to Indeed.com, the following states had employers looking to hire a Tax Accountant. The quoted salary figure represents the average salary from all job postings by this employer.
| Employer Name | Location | Average Salary |
|---|---|---|
| Paige Staffing and Placement Services Tax Accountant | New York | $150,000 |
| Confidential – New York, NY Tax Accountant | New York | $142,808 |
| Weinberg Lieberman & Co. Tax Accountant | New Jersey | $132,655 |
| International Business Promotion, Inc. (IBP, Inc.) Tax Accountant | Illinois | $130,314 |
| Oracle Tax Accountant | California | $111,478 |
| Roman Staffing Inc. Tax Accountant | New York | $107,098 |
| Tax Search Partners Tax Accountant | New York | $104,773 |
| Career Path Group Tax Accountant | Connecticut | $100,000 |
| Maverick Recruiting Tax Accountant | South Dakota | $100,000 |
| NJ/NYC CPA firms Tax Accountant | New Jersey | $100,000 |
| Flatiron Search Tax Accountant | New York | $98,270 |
| Kforce Finance and Accounting Tax Accountant | Connecticut | $98,188 |
| CyberCoders Tax Accountant | Wisconsin | $96,159 |
| Vaco Tax Accountant | Ohio | $93,598 |
| MISSION STAFFING Tax Accountant | New York | $92,740 |
| National Insurance Company Tax Accountant | Texas | $90,817 |
| Ledgent Finance & Accounting Tax Accountant | California | $90,455 |
Learn More
- Accountants and Auditors : Occupational Outlook Handbook …
- Accountants – South Dakota Department of Revenue
- Accountant — Central Intelligence Agency
| Career Name | Average Salary |
|---|---|
| Insurance Manager | $67,560 |
| Network Administrator | $66,871 |
| Financial Analyst | $66,611 |
| Supply Chain Analyst | $66,387 |
| Compensation Analyst | $66,326 |
| Cost Accountant | $65,282 |
| Operation Research Analyst | $65,235 |
| Research Analyst | $65,125 |
| Operations Manager | $64,810 |
| Financial Advisor | $64,188 |
