Role of a Tax Accountant
A tax accountant ensures that a company's fiscal policies, controls and procedures comply with regulatory standards and industry practices, and that such procedures prevent errors in tax reporting mechanisms. An accountant also provides tax planning and investment advice to management. This expert could be a certified accountant (CPA) working for a public accounting firm or in the tax department of a business entity.
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Purpose
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A tax accountant working for a public accounting firm or a business entity helps a client ensure that controls and procedures around tax reporting mechanisms are functional and adequate. A tax specialist also evaluates a company's fiscal policies and ensures that they comply with government requirements---such as Internal Revenue Service (IRS) guidelines.
Responsibilities
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A tax accountant typically collects accounting data and prepares accurate and complete financial statements. A tax specialist then files such data with federal, state and local revenue agencies quarterly or annually. Complete statements include a balance sheet, a statement of profit and loss, a statement of cash flows and a statement of shareholders' equity.
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Qualifications
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A tax accountant typically holds a four-year college degree in accounting, audit, finance or taxation. Some accountants may hold a master's or a doctorate degree if they wish to teach or conduct research at a university, a college or an institution of advanced learning---such as a think tank or a fiscal studies research institute. An accounting specialist also could hold a CPA license from a state board of accounting or receive an Enrolled Agent (EA) designation from the IRS.
Experience
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A tax accountant's expertise may cover a specific industry---for an accountant in private practice---or a variety of sectors---for a tax specialist working for a CPA firm. This expert also could prepare various types of tax filings---such as income, property, estate, and gift returns---and provide tax-saving advice to management. A tax accounting specialist works typically from 8 a.m. to 5 p.m. in a five-day workweek but could work longer hours in tax filing seasons---such as end of quarter or year.
Job Outlook
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A tax accountant's compensation levels depend on experience and academic training. The U.S. Labor Department reports that median wages of government tax accounting clerks were $32,510 in 2008, with the top 10 percent earning more than $49,260 and the bottom 10 percent earning less than $20,950. For experienced professionals, compensation is higher. Bureau of Labor Statistics surveys show that median wages of tax accountants were $59,430 in 2008, with the bottom 10 percent earning less than $36,720, and the top 10 percent earning more than $102,380.
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References
- Photo Credit A young woman holding a pen, doing her taxes image by Christopher Meder from Fotolia.com
