When you embark on a career path as a tax consultant online, you can turn in many potential directions for your long-term future. You can position yourself as serving corporate or individual clients and choose whether your happiest goal is to work as a tax preparer at a major accounting firm, start your own tax services business, or work in a corporate accounting department.
If your primary interest lies in tax issues – the laws, procedures, and best practices around taxation – you may seek to become a tax accountant. This professional role can be demanding as it requires an in-depth understanding of tax law and the ability to keep up with new developments. It would help if you also had a keen eye for numbers and details and a spotless business ethic.
If this sounds exciting and promising, it’s time to build the experience you need to get positions and start promotions at top companies. The most straightforward way to start your tax accountant caree r journey involves three different preparations. In addition to work experience and graduate education, industry credentials such as Certified Public Accountant (CPA) certification form part of this career path.
By building up various tax-related skills and experience, you can become deeply involved in this highly specialized field. It’s a serious commitment to tax and accounting, but it can lead to a stable and rewarding career path that meets your interests.
What are the career prospects for a tax consultant?
It is often said that the only two certainties in life are death and taxes. Year after year, companies and individuals need knowledgeable professionals to help them decipher and file their taxes, which continues the need for tax consultants. This ongoing requirement is good news if your goal is a long-term, stable role in accounting and tax preparation. To take advantage of demand, you need to keep up with the latest developments in tax law, as it evolves every year.
As the U.S. Bureau of Labor Statistics points out, positive times for economic development tend to be particularly productive for and auditors. As companies feel more capable of spending money, people increasingly need to deal with their financial records. Tax return preparation is required in any economic situation, so a tax accountant is essential.
Becoming a tax consultant has the potential to earn a solid salary. Indeed, the average salary for a U.S. tax accountant is $61,946. This figure applies to employees who have been in the tax accountant role for one to three years. Staying in a role like this longer could lead to financial recognition or an opportunity for advancement within the team and department.
The role of the tax consultant is not a career dead end. PayScale notes that multiple career paths in finance and accounting allow top performers to advance their positions and potential earning power. Tax accountants are often promoted to senior tax accountants and may take on the tax manager or tax director position. Tax managers are senior professionals responsible for tax preparation at large corporations, and their near-six-figure average salary ($98,180), according to PayScale, shows the high-value employers place on them.
What does a tax consultant do every day?
The day-to-day duties of a tax consultant are more specialized than the average entry-level accountant because they are primarily concerned with helping companies or individuals prepare their tax returns. The existence of a dedicated tax accountant services role to complete these filings demonstrates the high value of getting the process right – and the potential consequences if someone makes a mistake.
Of course, this one-dimensional view of the tax accountant’s responsibilities ignores the time between filing seasons. Indeed explained that other duties of a tax accountant include researching tax laws to ensure proper reporting. These consultants can uncover savings opportunities by analyzing a client’s or employer’s financial situation. Considering the constant evolution of tax laws, there is a lot of potential for new advantages.
There are also tax consultants whose responsibilities include a solid advisory component. Indeed notes that these individuals may work with companies or individual clients. PayScale adds that tax accountants can provide more detailed insights into ideal tax scenarios and benefits by giving presentations to clients. Skilled tax consultants make this clear when the law changes, putting individuals or companies at risk of non-compliance or providing new ways to save money.
Another aspect of tax consultants’ duties is their coordination with government agencies. When authorities are interested in auditing the books of an individual or company, they can work with the tax accountants responsible for their filings, PayScale said.
What are the essential skills and competencies of a tax consultant?
Whether they work for a corporation, a large nonprofit, or an accounting firm that deals with corporate or individual clients, tax accountants need a few essential competencies to stand out.
The BLS, Indeed, and PayScale all list the qualifications needed to be a good accountant who handles tax issues. While none of this is surprising, it does pay to hone your abilities while building your professional or educational experience. They include the following:
- Strong numeracy: filing taxes isn’t just about completing complex equations, but an ideal tax accountant with a sharp mind for math. It pays to be able to look at a list of numbers and tell if something doesn’t seem to be calculated correctly. Spotting potential errors and filing meticulous tax returns is one way to add value to employers and clients.
- Communication skills: Tax law contains particular rules and industry jargon. A good tax accountant can understand and communicate this information to others. As a tax accountant, you will be the person in the room with the most in-depth knowledge of relevant laws and policies. Tell company leaders or individual clients in a natural, actionable way what these rules mean to them, and you can provide them with sound advice.
- Problem-solving skills: A tax accountant should not only understand the legal and mathematical concepts behind taxation but should also be able to think about how to solve problems in novel ways. Every tax return has the potential to bring new challenges and opportunities. You can maximize your value as an accountant if you can combine your general knowledge with the specifics of specific situations and remain calm in the face of complex decisions.
To develop these competencies and more, you can specialize in accounting and tax-related positions, continue your education and pursue industry certifications.
