Most people and companies find it difficult to understand the tax system, how taxes function, and the impact of taxes on their daily activities. Do you need an expert to handle your money? Employing a professional tax accountant is a good option. Tax accountants specialize in laws, and rules, for the preparation and calculation of federal, state, and local taxes. This article talks about senior and entry-level tax accountant job descriptions and requirements.
What Is a Tax Accountant?
Tax accountants are specialists who know the rules and regulations of the government that determine the amount of money owed to federal, state, or local agencies. On the other hand, the Internal Revenue Service Code (IRS Code) guides and balances tax accountants. The IRS Code is a rule that people and companies abide by when filing taxes. Likewise, the IRS Code is lengthy and complex, mostly for companies and organizations. Moreover, tax analyst advises their clients on how to manage their assets to reduce tax fines, notify them of changes in tax laws, and help them with legal issues that come up.
What Do Tax Accountants Do?
Tax accountants are experts who know Internal Revenue Service (IRS) tax codes like the backs of their hands. Unlike tax preparers, tax accountants can do more than just write up tax returns. Tax accountants also advise managers on ways to lower, defer, or completely cut tax payments.
Where Do Tax Accountants Work?
As a tax accountant, you can find jobs at government agencies such as the Department of the Treasury and the Internal Revenue Service. Tax accountants can also work at hospitals, and colleges, producing tools, and software startups. Some of them can even work for mutual and hedge funds.
The Average Salary of a Tax Accountant
According to a Bureau of Labour Statistics report, the mean annual wage of a tax accountant is $79,520. America’s 1.28 million accountants make $38.23 per hour on average. Tax Accountants in the business transportation industry have the highest earnings average of $104,110.
Types of Tax Accountants
Some certified public accountants also work as tax accountants. This is so because tax accounting is a branch of accounting. However, different types of tax accountants are differentiated by the industry they work for. These include:
- Government tax accountants work with federal, state, and local government agencies.
- Management tax accountants handle financial and tax issues of companies and organizations.
- Personal tax accountants take care of individual taxes.
- Forensic tax accountants examine people and companies to prevent legal proceedings.
Senior Tax Accountant Jobs
As a senior tax accountant, you will use your knowledge of federal, state, and local tax laws to prepare a company’s tax documents. You will also do research and introduce plans based on changes within the law.
Responsibilities of a Senior Tax Accountant
- Firstly, a senior tax accountant verifies, allocates, posts, and reconciles accounts payable and receivable.
- Secondly, they resolve financial information and make a summary of the financial status.
- Senior tax accountants’ jobs also include the generation of error-free reports of accounts and bringing their results.
- They revise and suggest changes to accounting systems and procedures.
- Additionally, they make ready financial statements and generate budgets based on their schedule.
- They also advance and document business processes and accounting policies to keep up and strengthen internal controls.
- Equally, they comply with GAAP rules.
- Senior tax accountant jobs also include communication with financial and accounting managers to develop financial procedures.
- They introduce new plans depending on new taxation laws at the federal, state, or local levels.
The jobs of a senior tax accountant also include
- Looking into potential acquisitions and mergers to figure out a gain, which includes finding areas to save on taxes, calculating ratios, and resolving any more tax information,
- Senior tax accountant jobs also include the provision of practical support and advice to management accountants.
Senior Tax Accountant Skills and Requirements
The followings are the needs and skills of a senior tax accountant:
- Complete knowledge of basic accounting procedures.
- Experienced as a financial controller, accounting supervisor, and chief analyst.
- The ability to explain legal documents
- In-depth knowledge of Microsoft Office is also required
- Correctness and attention to detail
- Consenting to work extra time and weekends when such a case arises
- Bachelor’s degree in accounting, finance, or business
- A senior tax accountant is also required to be familiar with financial accounting statements.
- Knowledgeable in numbers and quantitative skills.
Entry-Level Tax Accountant Jobs
Entry-level tax accountant jobs are described below.
A typical entry-level tax accountant works under the direct supervision of senior tax accountants at an accounting firm or corporate office. Your jobs as an entry-level tax accountant include any tasks that are allocated to you by other tax experts in the company, such as generating financial statements or tax returns for a client.
Entry-level tax accountant jobs also include revisiting client income, helping with tax audits, filing tax forms and other paperwork, conducting searches, and solving tax problems. Moreover, you will have limited job tasks until you become more familiar with your duties, based on your experience as an entry-level tax accountant. You can travel and put in extra working time, though this is particularly during tax season.
How to Get an Entry-Level Job as a Tax Accountant
Employer to employer may have different requirements for entry-level tax employees. However, the majority of jobs require a bachelor’s degree in business administration, finance, or accounting. Tax accountants at the entry-level need to demonstrate good leadership and customer service capabilities. Self-motivation and superior communication abilities are also critical.
- ENTRY-LEVEL TRADING JOBS
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- GENERAL MANAGER JOB: Duties & Responsibilities of a General Manager
FAQs about tax accountant jobs
Do tax accountants make good money?
An accountant’s median yearly salary is significantly higher than the median national salary for all occupations. Accounting professionals are paid the most in the finance and insurance, business management, tax preparation, and government sectors.
Is taxation a good career?
A profession in taxation will equip you to earn a competitive wage. The pay may not seem like much when you first start out as a trainee. But with a few years of expertise, you may definitely earn a substantial salary! Depending on your organization and the job profile you select in this field, your pay may change.
Are tax accountants happy?
One of the unhappiest professions in the US is accounting. Millions of people participated in a survey by CareerExplorer asking how pleased they are with their careers. It turns out that accountants rank in the lowest 6% of jobs for career happiness, scoring 2.6 out of 5 stars.