Do you have an interest in tax laws and regulations and a knack for handling finances? How would you like to turn these skills into a rewarding and in-demand career?
Consider becoming a tax accountant.
In this article, we'll talk about what it takes to become a tax accountant, as well as what these professionals do on a daily basis and the skills they need to have.
What Is a Tax Accountant?
As the name suggests, a tax accountant is an accountant who specializes in tax law and form preparation. Tax accountants provide ongoing tax services to companies, agencies, and individuals.
Tax accountants have a similar job as tax preparers. But, whereas tax preparers specialize in filing taxes, tax accountants have a broader range of more advanced job duties.
Some of their many tasks may include:
- preparing tax returns for individuals and organizations
- offering advice and creating tax plans for clients
- ensuring all tax regulations and deadlines are met
- helping clients find ways of saving money
- arranging audits as needed
Tax accountants work for a variety of companies, corporations, organizations, and agencies. Many also provide services to individuals and small businesses.
Tax accountants typically work in an office setting and spend much of their time seated at a desk.
They typically work full-time hours, but may have to put in significant overtime according to client needs and to meet annual tax deadlines.
What Skills Do You Need To Be a Tax Accountant?
Tax accountants must have a thorough understanding of all tax laws and regulations at the state, local, and federal levels.
They must be skilled at using tax preparation software and other computer programs, such as Microsoft Excel. They should have strong mathematical and analytical skills.
Tax accountants are critical thinkers with analytical minds, proficient at evaluating data and determining areas of liability or fraud.
They pay close attention to detail so that their work is complete and error-free. They are highly organized and efficient recordkeepers and time managers.
Finally, they must have strong communication skills to verbalize complex information in layman's terms and to write clear and accurate reports and documents.
So, does this sound like a good career for you? Follow the steps below to become a tax accountant.
Step 1: Obtain a Bachelor's Degree
Nearly all tax accountants hold at least a bachelor's degree. This degree is necessary to become a certified public accountant (CPA), which is a recommended step of the process.
The most common degree aspiring accountants pursue is a bachelor's degree in accounting. Other students choose to major in finance, economics, business administration, or other related fields.
If you study full-time, you can graduate with your degree within about four years. Many schools offer accounting and other related degrees in a flexible online format.
Step 2: Consider Pursuing a Master's Degree
Having a master's degree isn't required to become a tax accountant, but a sizable percentage of aspiring accountants pursue it anyway. Why?
Obtaining a master's degree enables you to meet the credit hour requirements for the certified public accountant credential. Many bachelor's degree programs alone don't fulfill these requirements.
What's more, pursuing a master's degree in accountancy, finance, or a related field helps you deepen the knowledge and skills you need to succeed as a tax accountant.
Those studying full time can expect to graduate with a master's degree in two to three years. Again, many schools offer flexible online programs to fit the needs of busy students.
Step 3: Get Certified
It's important to find out if specific certifications or licenses are required to work as a tax accountant in your state. Each state has different rules and regulations.
Regardless of where you live, you may opt to earn your credentials as a certified public accountant. Holding the CPA designation qualifies you for higher pay and more advanced positions.
CPA requirements vary from state to state, but in all cases, you will need to provide proof of at least 150 credit hours of education to be eligible for the exam.
Again, check with your state to find out what specific requirements you'll need to meet to become a certified public accountant.
Step 4: Apply for Jobs
Once you have completed your education and obtained any necessary certifications or licenses, you're ready to begin working as a tax accountant.
You can apply for open positions in your area by searching job boards or attending hiring events. You could also check for job openings on individual company websites.
Alternatively, you would work on a freelance basis by providing tax services for individuals. To succeed at this, you'll want to make connections and market your services through word of mouth and advertising.
Start Your Path to Becoming a Tax Accountant Today
Tax accountants are experts of tax law and skilled at preparing tax returns. If you want to become a tax accountant, following the steps in this article will put you well on your way to achieving your goals.
