Tax Accountant

Tax Accountant Career Overview

Tax accountants create personal and corporate income tax statements and ensure they are in compliance with modern tax laws and codes. They monitor tariff procedures to guarantee taxes are paid in a timely and effective manner.

Tax accountants examine and evaluate the financial statements of clients, and help them develop strategies to facilitate the tax process. While devising individualized plans, they council their clients on issues pertaining to financial choice, mergers and acquisitions, tax deferrals, and expensed items. They also determine their assets and guide them through financial and investment planning.

Tax accountants are expected to work extremely long hours during tax season, which annually occurs from January to April. Accountants engaged in tax practices must have a deep comprehension of the current economy and tax code. They must also possess strong mathematical and analytical skills, and have an aptitude for problem solving.

Tax Accountant Training and Education

In today's competitive job market, employers are seeking candidates that have a master's degree in accounting or business administration (with a concentration in accounting), and for most places of employment, a bachelor's degree simply will not suffice. Potential employees that hold a dual accounting and legal background have an advantage when applying to large corporations as a legal understanding of taxes can prove very useful in this field.

In some cases, junior college graduates or bookkeepers can secure a junior accountant position, and advance to a higher status by proving their skills over a long period of time.

Tax accountants can enhance their desirability and job prospects by acquiring a Certified Public Accountant (CPA) license. Once a professional meets his or her state's requirements and passes the national exam, he or she is issued a CPA certification through their State Board of Accountancy. Although the testing process and preparation can be grueling, the benefits are well worth the effort, and they include salary increases, employment advancements, and a respectable title.

Tax Accountant Salary and Career Outlook

The employment rate for accountants is expected to rise at a steady, above-average rate of 18% from 2006 to 2016. This growth is the result of stricter tax, accounting, and auditing regulations. The expansions of the job market are dependent on the economy, and as new businesses develop and the corporate world multiplies, accountants will be needed to setup books and offer tax and managerial advice.

Tax accountants will also be in demand because of continuous tax alterations in legislation (and other financial events). However, the roles of tax accountants are expected to shift and adjust as tax preparation software becomes readily available to businesses and individuals, and their job will focus on advising and consulting.

Although employment prospects for accountants are favorable, this occupational field is highly competitive, and the applicants with an advanced degree or a CPA certificate are at an advantage. Potential employees will also stand out if they have proficient knowledge of contemporary accounting software.

In 2006, the mean salary for accountants was $54, 630, with tax accountants averaging $57,020. The incomes will vary according to education level, professional credentials, and the size and location of the firm. Accountants at the senior level can earn anywhere from $43,250 to $79,250, while managers have the potential to receive $51,250-$101,500. If director status is achieved, an accountant can obtain an estimated salary of $68,000-$208,000.

Career Fields/Specializations

Estate and Trust Tax Accountants

Accountants of this nature set up estates and trusts, so that assets are passed onto heirs in the most tax efficient manner.

Business Tax Accountants

Business tax accountants help corporations make important tax decisions, and they reveal the tax advantages and disadvantages of particular business endeavors.

Personal Tax Accountants

Personal tax accountants work one-on-one with clients to develop a personalized tax plan, file a return, and determine assets.

Article Resources: