Sunday, July 7, 2024

What Do Tax Accountants Do

Don't Miss

Key Skills Of Accountants

What do Tax Accountants do? l Day in a Life of a Tax Accountant l What you Should Expect

Apart from being financially savvy and good with numbers, an accountant also needs good emotional intelligence and people skills. Here are a few of the traits every good accountant needs to exhibit:

  • Foresight and vision
  • Time management skills
  • Commitment

In an accounting career, your goal is to make life as easy as possible for your clients. Good foresight and vision will allow you to see problems early so you can handle them before they grow into large-scale issues. Similarly, problem-solving skills will let you think creatively and find solutions to any issues that may arise.

Furthermore, accountants need to be able to pay close attention to details. One small piece can make the difference between thousands of dollars for your client, so youll want to make sure that youre always on your game.

Youll also need to know how to communicate sensitive issues with your clients. Youll need to understand precisely what theyre looking for and how to help them.

Lastly, if you want to be successful, working as an accountant will take time. There will be some long hours, and youll need to know how to balance between multiple clients. But if you can remain committed to the job, youll find its gratifying and can offer a lot in career growth.

Which Accounting Professional Do You Need

Every company, even one as small as mine, needs someone to keep track of the books. Whether you hire an employee or a contractor, you will need a bookkeeper. That bookkeeper might work for an accountant or a CPA.

You also must have someone to help you review your financial reports and help you make decisions on finances and taxes. I can’t tell you that you must get a CPA, but as I mentioned above, an accountant who is not a licensed practicing CPA cannot represent you before the IRS. To me, this is an important distinction, which is why I have a CPA who helps me review my books and who gives me tax advice, as well as preparing and submitting my business and personal tax returns online.

Job Outlook For Accountants

Projected Growth

The Bureau of Labor Statistics projects that job growth for accountants and auditors will be well above the projected average job growth across all occupations. This projected growth is thanks to a shifting economy and ever-stricter financial laws.

Career Trajectory

When you first enter the world of accounting, you may be given routine tasks that don’t offer much variety or excitement. However, as you grow in experience and education, you will be able to tackle more interesting and varied assignments. You may even be appointed to oversee a team of other accountants. Being a manager in an accounting office will offer increased pay, and it will help you hone your communication skills.

You may eventually earn a position as a controller. A controller is a key component in a business whose job it is to analyze data from different portions of a company and see how they interrelate. Controllers work closely with a company’s chief financial officer . You may even be able to become a CFO yourself one day.

For those who have the personality for it, accounting is an exciting and rewarding field. If you have a love for numbers, have an eye for details, can communicate well, and don’t mind pressure from deadlines, you could become a powerful force in the world of accounting.

Read Also: Are Property Taxes Paid In Advance

Yes You Do Need To Interview

You don’t want commit your personal business to anyone you haven’t met, so arrange to sit down the professional to discuss your situation and to ask some questions before your first official visit, even if you have to do it over the phone. Request references, just as you would from anyone you’re thinking of hiringand reach out to those references to corroborate them.

Keep in mind that not everyone will feel comfortable talking to you, and keep it simple. Ask basic questions like, “Are you pleased with their services?” or “Did you ever have a problem with them?” The answers to these questions can tell you a lot, especially if you stop talking after you ask and let the other individual state whatever comes to their mind.

How Much Will This Cost

What Does a Tax Accountant Do?

On average, a tax return that’s professionally prepared cost about $158 in the 2018/2019 tax season, but this can depend on location. It ranges from $106 in the north central states to $200 in the New Jersey and New York areas for a basic Form 1040 claiming the standard deduction.

Plan on spending more if you want to itemize your deductions, because this involves a good bit more work. You’ll pay still more if you’re self-employed and must file a Schedule C.

You May Like: What Is The Date To Pay Taxes

What Career Paths Can I Take In Accounting

Usually, accountants and auditors work in offices, although some work from home. Auditors may travel to their clients’ workplaces.

Many accountants specialize, depending on their client or clients’ type of business and needs. Typical specializations include assurance services and risk management. Accountants can also specialize by industry, choosing to work in healthcare, for instance.

The four main types of accountants are:

Accounting Career Job Duties/Degree You’ll Need
Public Accountant Their clients include corporations, governments and individuals. They fulfill a broad range of accounting, auditing, tax and consulting duties.Bachelor’s
Management Accountant Also called cost, managerial, corporate or private accountants. They record and analyze the financial information of the clients they work for, and provide it for internal use by managers, not the public.Bachelor’s, CPA
Government Accountant Maintain and examine records of government agencies, audit private businesses and individuals whose activities are subject to government regulations or taxations.Bachelor’s
Internal Auditor They check for risk management of an organization or businesses’ funds. They then identify ways to improve the process for finding and eliminating waste and fraud.Bachelor’s, CPA

Advancement in the field can take many forms. Entry level public accountants will see their responsibilities increase with each year of practice, and can move to senior positions within a few years.

Different Types Of Accountants

Accountant tends to be a broad term that encompasses a large career field. However, within accounting, there are numerous different fields of study. If youre looking to work in an accounting career, you may want to start considering what type of work youd like to do.

And, if youre a small business owner looking to hire an accountant, youll want to make sure that you find the right type of accountant.

You May Like: What Tax Return Does An Llc File

Tax Accountant Job Description Template:

Our company is currently searching for a detail-oriented and qualified tax account to prepare our tax payments and returns. As the tax accountant, your chief goal will be to recommend effective tax strategies that comply with laws and promote our companys financial well-being. Your responsibilities will include preparing tax returns, analyzing tax regulations, monitoring industry trends, and completing tax reports.

To excel in this role, you must demonstrate in-depth knowledge of accounting procedures and time management skills, as youll have to ensure our company meets strict deadlines. In addition to being an excellent communicator, our ideal candidate will also demonstrate keen attention to detail with excellent mathematical skills.

You’re Dealing With A Complex Tax Situation

What does an Accountant do? | Rask Finance | [HD]

Life isn’t stagnant, and it’s surprisingly common for taxpayers to experience a wrinkle, crisis, or significant change during the tax year that dramatically affects their tax situations. This is a time for professional help.

You’ll want to at least consult with a professional so you understand what you’re facing if your situation has changed significantly, even if you don’t ultimately ask them to prepare your return.

Accountants often specialize in certain kinds of tax issues. Seek an accountant who has expertise in that area if you have a special circumstance. For example, you might have moved outside the United States, launched a small business, or begun day trading in the stock market.

Also Check: Are Taxes Due By Midnight May 17

The Job Of An Accountant: 10 Specialties To Consider

With so many different facets of accounting, you dont have to lock yourself into a single career path before pursuing your degree. The knowledge and training you receive in the classroom will likely help you home in on an area of interest. But until then, these brief breakdowns will provide you with a quick introduction:

Responsibilities For Tax Accountant

  • Review and verify tax forms completed by clients to ensure their proper submission
  • Properly research and seek the advice of senior-level accountants when confronted with particularly challenging or unusual tax circumstances
  • Gather appropriate materials regarding yearly tax tables, instructions and forms to accurately calculate taxes for clients
  • Work closely with clients to obtain personal information regarding potential deductions, educational grants or allowances
  • Inform clients of important paperwork and documentation needed to complete tax forms accurately
  • Meet with clients and address their questions and concerns regarding tax forms and paperwork
  • Review financial statements, expenses and previous tax returns to identify the best strategy for completing future returns
  • Organize and prepare income tax forms for businesses and individuals in preparation for yearly filing

Recommended Reading: Where Can I Get Taxes Done For Free

Auditing And Assurance Services

Assurance service providers review several types of documents, such as loans, contracts or websites, to certify they are correct. An assurance provider may work with financial or nonfinancial documents, whereas auditors work strictly with financial records. Auditors may work internally or as a third-party service to ensure an organizations financial records are accurate, complete and compliant under federal law.

Why Talk To A Tax Lawyer

What to Do if Your Accountant Makes Payroll Tax Mistakes ...

Why Hire A Tax Attorney? IRS tax matters are often urgent and almost always, overwhelming. Even a small oversight in the tax controversy process can cost;

Tax Attorney: Tax attorneys specialize in the minutiae of the IRS tax code. They provide advice on complicated legal issues, particularly in the areas of;

A tax lawyer can represent private interests or the government in litigation or in transactional matters. Tax lawyers representing clients often advise;

Tax attorneys can help you understand lawful regulations of tax and how to solve issues associated with various types of taxes including gift, property, sales,;

Tax attorneys are perennially in high demand because of their ability to handle complex business transactions, provide tax counseling and help clients comply;

However, for out of court issues, an enrolled agent can do the same job for less money. Enrolled agents can represent you before the IRS, but only an attorney;

Tax Lawyers can help you every step of the way until your tax problem is handled. Some CPAs and tax services can do little more than write letters on your;

Like an accountant, a good tax attorney can help you avoid tax problems before they begin and may be able to foresee potential legal problems before its too;May 1, 2013 · Uploaded by Optima Tax Relief

Our team also has extensive experience that can assist with potential tax-related Our international tax lawyers provide ongoing counsel to U.S.-based;

Also Check: How To Pay Taxes For Free

What Qualifications Do You Need To Be An Accountant

Unless you are planning to become a CPA , there are no standard set of requirements, government or otherwise, for individuals wishing to undertake a career in the accounting industry.

Because an accountant deals with so many different areas of business, like bookkeeping systems that store data, the preparation of financial statements and legal considerations, it is advisable to undertake a degree in accounting. As well, completing some business management and computer software classes can really help a candidate build his skills and start his career. The average degree takes four years to complete.

Keep in mind that someone interested in the field of accounting will need strong organization and communication skills, and the ability to be both resourceful and strategic. A lot of information about a companys money needs to be processed and managed on a daily basis, and the results of the financial reports generated need to be properly communicated to management. If the results are disappointing and the figures need improving, management may task the companys accountants to provide suggestions on how to improve. In other words, an accountant will not just be expected to number crunch, but to come up with viable solutions on how to cut costs or improve the companys profitability.

Corporate And Small Business Tax Accounting

Small business tax accountants often establish independent practices in which they provide tax planning and tax return preparation services to a number of clients, while corporate tax accountants are more likely to work as internal employees within a single corporation. Public accounting and CPA firms also employ both small business and corporate tax accountants contracted to work with small business and corporate clients.

In addition to tax planning services, corporate tax accountants also handle business payroll tax accounting, which is the preparation and filing of both federal and state payroll tax returns. While an accountant in a small business might deal with both payroll taxes and income tax planning and returns, in a large corporation, these jobs belong to several different specialized accountants.

Corporate tax accountants also prepare state income tax returns for revenue generated, and handle property tax issues when a business or corporate entity owns property. Sales and use taxation applies to certain states and requires specialized corporate tax accountants known as tax analysts who handle transactional returns, which involve reporting and paying sales tax collected by the business, or paying use tax owed on items purchased by the business in the event that sales tax wasnt charged in the original transaction.

Services that are part of international tax accounting performed for U.S. corporations and expatriates include:

Don’t Miss: How Much Does Tax Take

What Professional Development Is Required

When deciding what skills to focus on in your professional development, its important to think about your future plans and goals, and industry-specific skills.

“Intermediate to advanced Microsoft Excel is almost a prerequisite for hiring managers these days. The ability to embrace new systems and business intelligence software really make Accountants more valuable to the business as the need for instant information becomes more important,says Geoff Balmer, Director at Richard Lloyd.

Yes, we are seeing increasing demand from our clients for accounting software skills. Employers are now looking for candidates who can hit the ground running when they start in a role, without having to spend time on training,” adds;Susan Drew, Senior Regional Director of Hays Accountancy & Finance.

In Australia, the largest accounting body is the CPA which requires members to pursue continued professional development throughout their career.

Other industry bodies that ensure professional development for accountants include the Association of Accounting Technicians Australia, the Institute of Certified Bookkeepers, ;The Tax Institute and the Institute of Public Accountants.

Open Colleges’ students can sometimes enjoy a 12 to 24-month student membership at some of these bodies;.

Bookkeeper Accountant Cpa What Is The Difference

Tax Season & What do Accountants do?

The terms “bookkeeper,” “accountant,” and “CPA” are often used interchangeably. But they are not the same. These three professionals are very different in their scope of work, the tasks they perform, their licensing and professional status, and their standing with the Internal Revenue Service.

Read Also: Where Can I Get My Taxes Done By Aarp

How To Become An Accountant

According to the U.S. Bureau of Labor Statistics, accountants’ job growth is projected to grow by 4% from 2019 to 2029. Several factors, including a growing economy and increasing tax laws and regulations, will likely contribute to these professionals’ strong demand.

There are specific steps an aspiring accountant must undergo to enjoy a successful and fulfilling accounting career. These include:

Brian Thorp is the founder and CEO of Wealthtender, a leading personal finance website helping thousands of people each month find the best financial advisors, coaches, and educational resources to enjoy life with less money stress.

  • Brian Thorp

When Should You Hire An Accountant

Its smart to have expert advice from an accountant throughout the life of your small business, whether youre just in the planning stages, or youre so far in you already have employees. But advice from a professional can only be helpful if youre willing to take it.

Small-business owners wear lots of hats and can struggle with delegating some of their control to others. We understand that this business is your baby! You made it from scratch. Or maybe youve had a bad experience with someone keeping your books in the past and dont want to go through that again. These are all reasons you need a trusted, experienced, qualified professional.

Also Check: What Do I Do If I Owe Taxes

What Qualifications Are Required To Be An Accountant


The education you’ll need in order to become an accountant will depend on your specific career goals. You may be able to find a basic accounting job if you have a certificate in accounting. However, most employers require that job candidates have at least a bachelor’s degree. CPAs, or certified public accountants, always need at least a bachelor’s degree.

The sky’s the limit when it comes to education for accountants. Some professionals in the field even have doctorate degrees. To be eligible for the most lucrative accounting positions, you should pursue an MBA in accounting or a Ph.D. in accounting.

There are a few different education tracks that could lead to an accounting job. While focusing on accounting during your education is the most obvious route to an accounting job, you may also choose to pursue an education in business administration and management or general finance.


The more experience you have as an accountant, the more valuable you will be to employers. A formal education will give you a base for succeeding in your chosen career field, but experience will teach you problem-solving skills and hone your number-crunching abilities.


There are some key skills that will serve you well as you embark on your accounting career:

Salary Expectations

Salaries for Accountants

More articles

Popular Articles