what is a tax accountant?
Tax accountants work closely with businesses and individuals to help them prepare their taxes. Instead of clients visiting you once during tax season, they build long-term relationships with you as they trust you to manage part of their finances. Your annual tax plans help them track their finances and secure the biggest refund when you file on their behalf.
Tax accountants stay on top of state and federal tax laws, watching the news for recent changes. Your clients count on you to accurately file their taxes without audits or corrections. However, if your client engages in questionable behavior, you may work with the IRS during an audit.
With your expertise, your clients receive the biggest deductions. You'll itemize their deductions if they have varied expenses and the standard deduction isn't enough. You'll also provide advice throughout the year that reduces their tax burden while staying in line with the laws. For people who pay quarterly, you'll remind them about the dates so that they don't have a huge bill at the end of the year.
You'll warn your client about potential tax liabilities and advise them against potentially costly mistakes. While your services come with a fee, customers ultimately save money when they hire you.
Would working as a tax accountant suit your math skills? Then read on to find out what competencies and qualifications you need to thrive in a tax accountant role.
view jobs near youaverage tax accountant salary
Would you like to know what a tax accountant earns? Where the highest salaries are paid for a tax accountant? Then check out this tax accountant salary page and find out all about the salary of a tax accountant in the USA.
types of tax accountant
Many tax accountants work exclusively for United States-based companies. However, international tax accountants work for U.S. businesses or individuals who operate overseas. You'll keep track of U.S. and foreign tax laws and advise your clients accordingly. The International Financial Reporting Standards (IFRS) Foundation regulates foreign accounting services.
Tax accountants can specialize in different areas, such as banks, healthcare clinics, insurance agencies, IT companies, and state and federal agencies. Consider your different interests if you choose a specialty. For example, if you thought about becoming a lawyer, consider working as a forensic accountant who deals with legal issues.
working as a tax accountant
Tax accountants need specialized degrees and skills to succeed in their job field. Learn how to prepare for becoming a tax accountant.
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tax accountant job description
What does a tax accountant do? Essentially, you take care of your clients' taxes to make their lives easier. Paying income tax is particularly challenging for businesses and freelancers because the government doesn't automatically deduct it from their earnings. You'll track their income so that they never underpay.
Tax season occurs once per year, but you'll work year-round so that your client is ready to file. Businesses often need to start weeks ahead of the deadline. Luckily, you'll keep everything organized to cut back on preparation time. You'll also advise your customer throughout the year. For example, if they're about to start investing, you'll discuss capital gains taxes on stocks or real estate. If your client's income increases, you'll talk about their new tax bracket.
Rebates, credits, and deductions will shave thousands of dollars off their total. In fact, you might turn a loss into a refund. However, you won't start looking for credits during tax season. You'll find deductions all year round so that your client makes the most out of every purchase. Many people don't know that they can deduct certain bills, office supplies, and other everyday costs--but they will once they hire you.
When questions arise, you'll explain technical issues in simple language that anyone can understand. You'll resolve issues by reviewing documentation and possibly working with the IRS. You're not a financial manager, but you're always up to date on the business's financial situation, making you the first point of contact for several people.
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tax accountant work environment
Tax accountants typically work indoors in office settings. Large companies may give you an office in their building, providing direct contact with supervisors and coworkers in the financial wing. You may spend time in meeting rooms, employers' offices, and the business's cafeteria and break room.
If you work for a private firm, you may work from home or commute to the firm's office. This offers more flexibility because you operate your workspace on your own terms. Some corporations offer work-from-home options and provide the software and equipment that you need. Either way, you'll likely still work on a set schedule.
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who are your colleagues?
If you work for a private firm, your coworkers will include other tax accountants servicing various clients. Tax accountants who work directly for businesses interact with other finance professionals, such as budget planners, payroll managers, and internal auditors. Large corporations can have multiple accountants. Other colleagues may include CEOs, supervisors, HR managers, and international accountants. Periodically, you may interact with the IRS. Sometimes, you'll talk to other employees, such as customer service representatives.
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work schedule
Generally, tax accountants work during the week and have nights, weekends, and major holidays off. You can expect a regular 9 to 5 shift every day. However, you might have to work overtime when you're busy, especially during tax season. Clients might also want to reach you outside of your office hours.
Most tax accountants work full-time with 40 hours a week due to the level of responsibility involved. Part-time positions are most common as a supplement during tax season, but you might find one in another position and later become a full-time tax accountant. Typically, part-time jobs offer about 20 hours a week and fewer benefits.
Your job may involve unpaid research time, such as attending conferences and learning about new tax laws. Tax accountants rarely travel unless their client operates in a foreign country. If you have to travel, your employer may compensate you.
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job outlook for tax accountants
Tax accountants work in various industries, including bookkeeping, credit intermediation, payroll management, government agencies, and scientific consulting. If you're unsatisfied with your salary, other industries may offer a better paycheck. In particular, government jobs often provide strong benefits.
If you perform well, you could potentially work for the same company until you retire. People prefer to manage their finances with one trustworthy person instead of bouncing around with multiple accountants. You could use your experience and performance as leverage when negotiating a higher salary.
Related positions include payroll coordinator, financial analyst, and purchasing manager. In fact, you might interact with these people in your office. You could transfer to one of these positions or seek a higher title, such as Vice President of Accounting and Finance or senior accountant. If you work with fellow tax accountants, your supervisor could name you the team leader.
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benefits of working for randstad as tax accountant
Working through Randstad offers you a range of benefits:
- being paid weekly
- flexibility
- always a contact person you can fall back on and ask for help from
- many training opportunities
- a range of jobs in your area
Want a permanent contract? But you wonder why it would be interesting for you to work with a staffing company? A temporary job as tax accountant is often a stepping stone to an attractive permanent job. Every year, thousands of people earn a permanent contract with great employers thanks to a temporary job found through Randstad. What's more, many companies recruit their permanent employees through Randstad too!
tax accountant skills and education
Most employers seek tax accountants with a bachelor's degree in accounting or finance. Your education may include classes in marketing, economics, business ethics, corporate finance, business law, and more. Once you've earned your degree, you can become an expert in your field by pursuing a master's degree.
You'll need a Certified Public Accountant (CPA) certification to qualify for many jobs. However, some states require you to earn your master's degree before you can take the CPA exam. When you've earned around 150 credit hours, you'll apply for a Notice to Schedule (NTS) from the American Institute of Certified Public Accountants (AICPA), then study for the exam and take four sections over an 18-month period.
Some fields require special certifications. For example, you'll need to become an Enrolled Agent (EA) to offer legal services. Passing exams can take years of work, dedication, and experience, so research each certification before you get started. Afterward, you can attract more employers by adding certifications to your resume.
Businesses want to spend as little time training as possible, so look for certifications in accounting software, such as Microsoft Excel. This shows clients that you're passionate about learning and can get started right away.
skills and competencies
Tax accountants are math experts. You perform quick, accurate calculations to keep your clients' finances in order. If you did well in algebra, calculus, geometry, and other subjects, you'll have the skills to excel in accounting. Similarly, you'll review financial documents and calculate tax credits, deductions, and other items.
Your clients will likely have lots of assets, purchases, investments, and charitable donations. You should know the difference between all the tax forms, such as W-2s and 1099s, and know which documents your client needs. Likewise, you'll fill out each form accurately and submit their taxes on time. Since it's your job to keep their documents organized, you should file ahead of schedule.
Other essential skills include:
- data analysis
- problem-solving
- knowledge of financial concepts
- attention to detail
- time management
- critical thinking
You'll communicate with several people throughout the week. When you write reports and present data, you'll make the information easy to understand. If you're part of a team, you'll effectively collaborate with everyone to get the work done. Tax accountants also answer questions and give advice in a timely, professional manner. You're not just working with numbers — you're helping clients succeed.
FAQs about working as a tax accountant
Here you will find answers to the most frequently asked questions about tax accountants.
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how much education do tax accountants need?
Tax accountants need a bachelor's degree in a financial field, plus related credentials, such as a CPA certification. Not every employer requires one, but earning your master's degree in accounting may lead to higher salaries, better benefits, and more prestigious jobs. You'll also need years of experience before you can take some certification exams.
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are tax accountants the same as regular accountants?
While they both manage finances, tax accountants specifically manage their clients' taxes while regular accountants focus on general subjects. You may interact with other specialized accountants, such as management accountants, auditors, and financial advisors. Some people start as general accountants and eventually specialize in taxes.
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who do tax accountants work for?
Tax accountants work for a variety of clients, including individuals, freelancers, small business owners, and CEOs. Government agencies, medical clinics, banks, non-profit organizations, insurance agencies, and technology consultants are a few of the groups that need your services. You can specialize in specific fields, such as legal matters.
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do tax accountants only work during tax season?
Your workload may increase during tax season, but tax accountants work all year round because your client regularly makes purchases and investments. Every decision they make could influence their taxes, so you'll advise them on maximizing their credits and deductions. Additionally, some customers make quarterly tax payments throughout the year instead of paying all at once.
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what makes tax accountants different from CPAs?
Certified Public Accountants (CPAs) have passed an exam that shows their knowledge after years of work and experience. Not all tax accountants are CPAs, but those who earned the certification often receive higher salaries. Employees in different fields, such as tax preparers, can also earn CPAs.
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how do I find a job as a tax accountant?
Applying for a tax accountant job is easy create a Randstad profile and search our tax accountant jobs for vacancies in your area. Then simply send us your CV. If you do not have a resume, no worries. Just check out our resume builder. This state of the art tool will help you to create your own resume. Need help with your application? Check out all our job-hunting tips!
