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Tax accountants are specialized to prepare taxes for public or private companies, individuals, government entities as well as non-profit institutions. They are also responsible for making appropriate strategies to reduce the burden of taxes for their clients while remaining compliant with the ongoing law and generally accepted principles of accounting.
A good tax accountant has to understand and interpret tax related laws thoroughly and should be able to occasionally explain its implications to their clients. Tax accountants have the common responsibilities of preparing and filing taxes, participating and attending strategy meetings with prospective clients and others, making financial planning, preparing reports and presentations related to current tax situations, reviewing and researching past tax filings, getting aware of the current tax laws and reporting.
If you are planning to be an accountant with specialization in taxation, your work purview will cover handling taxes for either corporations or individuals and also to keep financial records and audits.
Duties of Tax Accountants (For Individual Clients)
You can either work with companies (as an independent contractor running their own business or as a direct employee) or with individuals. When you are working with individuals, you might be responsible for helping your client in tax preparation during tax filing. You will also aid your client to properly fill out their tax forms, give them the right advice regarding future financial moves which may affect their taxes, and help them in the electronic documentation of tax filing so that they receive the tax refunds as early as possible.
In case an individual is audited, you might need to handle this audit on behalf of them so that they get through the procedures without any problem. Individual tax accountants should work professionally enough to balance their clients. You should take and return the client’s calls, give them a market idea on a regular basis. The life of tax accountants can be very stressful during tax season.
Duties of Tax Accountants (For Businesses)
You may also opt to be a corporate tax accountant working for companies. You may be the supervisor of the accounting department or a member of the accounting team. Whatever the position, to be successful in your role, you must know the government regulations regarding accounting thoroughly and have a clear understanding of the generally accepted principles of accounting. As corporate tax filings are usually more complicated than the individual ones, it is better to enter this field after having adequate experience in tax accounting.
Short Term Professional Courses and Get Hike in Salary
The common work of corporate tax accountants includes reviewing the financial records and tax files of the company; fill out tax forms, preparing ledgers, maintaining regular contact with tax agencies, and hold meeting linked to taxation strategies. Working internally for an institution is better if you are looking to work in a corporate environment. However, becoming a forensic accountant is another option where you have to look into the internal audits of the institution to avoid penalties associated with errors in filing taxes.
Becoming a Successful Tax Accountant
A Bachelors degree in accounting, particularly with a concentration in tax laws and taxes is a must for a tax accountant. Pursuing a Master degree in Auditing or Taxation is also found to be helpful for many tax accountant professionals. There are many widely acknowledged certifications that may help you become a successful tax accountant and be competitive in the job market. They include Enrolled Agent, Certified Financial Planner, and Certified Public Accountant. Many companies, however, look for tax accountants having experience in tax compliance in addition to holding the minimum accounting certification or degree. This is because tax accountant position is a highly responsible one and has a huge impact on the finances of the business.
Career Opportunities and Possible Employers
Tax accountants have numerous work opportunities as they can opt to work directly for any organization or business, work through any public accounting firm as tax advisor or consultant or even continue working as a self-employed tax accountant. Both small and large firms require tax accountants in preparing, auditing and planning their tax filings. Government agencies also need tax accountants and offer competitive salaries to gain work experience (such as Internal Revenue Service), which are a great way to advance as a tax accountant.
Job Outlook and Salary of a Tax Accountant
Tax accountants earn a handsome salary and overall the salary depends on seniority or experience. A good tax accountant with ample experience earns around Rs 40,000 to 50,000 per month. If you are having a specialized accounting career such as tax accountancy, you could enjoy even higher salary packages. The initial salary of a tax accountant starts in the range of Rs 15,000 to 25,000. With the continuing globalization of marketplaces, it is expected that the demand of knowledgeable tax accountants will continue to grow, particularly for those having professional designations and expertise.