What is the role of a tax accountant? What does a tax accountant do? What jobs are available to those who are trained in the field of tax accounting? Read on to learn more about the role of a tax accountant and the steps in taking to become one.
What a Tax Accountant Does
According to Wise Geek, a tax accountant manages the taxes, audits and record keeping for individual clients and larger organizations. There are different types of accountants that specialize in specific fields of business. A tax accountant is typically in charge of calculating revenue, organizing records, filing documentation and producing tax statements. Some tax accountants work within a company and others are hired from outside and work with multiple clients at a time. Some tax accountants may be primarily engaged in tax preparation and record keeping, others may work alongside executives to plan business strategy and some may have supervisory roles as the head of an accounting department. There is a wide array of positions including the forensic accountant, who is involved in researching company records to ensure adherence to tax law.
Certified tax accountants are responsible for completing large amounts of paperwork. They may work with primarily paper-based documentation filing systems, or they may work primarily with electronic documentation filing as more and more companies are utilizing electronic archival systems. Tax accountants fill out tax forms, get information from clients and customers and talk with company executives to make sure that all tax forms are dealt with efficiently.
A tax accountant’s responsibilities include keeping up to date on the latest trends in their field and keeping tabs on any updated or changing governmental regulations within the agency that pertain. They are expected to be knowledgeable in regards to what standards and criteria will effect their clients so that tax documentation is filed properly.
Communication is Essential
It is critical for tax accountants that they be adept and effective communicators, as information regularly needs to pass back and forth between the tax accountant and the client or firm they are working for, according to Entrepreneur. Different accountants have different rhythms when it comes to the frequency of communication. It is important that the potential accountant has an approach which works well and fits naturally with that of the client.
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The minimum educational expectation for tax accountants is typically a Bachelor’s degree. Potential tax accountants may want to find programs that are related to other majors, such as management or business administration, as well. Those who are considering getting their Master’s in Accounting degree may look for programs that have a specific focus. Programs will include coursework that covers business calculus, statistical analysis, financial planning and auditing and taxation.
The U.S. Bureau of Labor Statistics projects an expected growth rate of 16% from 2010 to 2020 for those in tax accounting and auditing. This growth is attributing to the tightening of tax regulations, thus creating a need for specialized accountants to analyze and handle more complex accounting matters.
For those wondering what a tax accountant is, this information may help you shed some further light on the question and set you on the right path towards discerning whether or not the field of tax accounting is right for you. Large volumes of paperwork and documentation are involved in most accounting scenarios, and the job security expectation is pretty high for the foreseeable future.