The Job Description of a Tax Manager
Every year, businesses and individuals must report their annual earnings, expenditures and investments according to rules established by the U.S. Internal Revenue Service. For some tax filers, the U.S. tax code can be daunting and challenging to understand. Tax managers are accountants who are employed by public accounting firms, big corporations, consulting firms and international companies to prepare government tax returns, research the implications of tax laws and advise clients on tax related issues.
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Function
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Tax managers are responsible for planning, preparing and analyzing local, state and federal tax returns for organizations. These professionals help their clients effectively manage tax risks and liabilities associated with intricate business transactions such as mergers and acquisitions, and initial public offerings. In addition, tax managers help companies improve their internal controls for recording and tracking income, property taxes and other tax information. Other duties that tax managers handle include researching and developing tax saving strategies for clients and reconciling tax data on financial statements.
Education
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Candidates who seek tax manager positions must usually possess at least six to eight years of experience as an accountant. Most employers require a bachelor's degree in accounting or finance. In addition, tax professionals who file financial reports with the U.S. Securities and Exchange Commission must be a Certified Public Accountant. Accountants receive licensure after passing a national exam and meeting requirements issued by their State Board of Accountancy.
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Skills
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Tax managers must be extremely detail-oriented, precise and meticulous when preparing tax returns and other accounting documentation. Strong mathematical and analytical skills, as well as basic knowledge in statistics are beneficial in tax management positions. Tax managers should have experience working with financial accounting and reporting standards such as U.S. Generally Accepted Accounting Standards or International Financial Reporting Standards (IFRS). Other qualifications that companies seek in tax managers include project and people management, technical acumen, and oral and written communication skills.
Salary
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Salaries for tax manager roles fluctuate based on factors such as geographic region, sector, and experience and education level. According to a June 2010 PayScale report, the average salary range for tax manager jobs in New York was between $87,761 and $121,800. However, the PayScale report states that the average salary in Dallas fell between $74,174 and $111,071. Salary.com reports that the median expected salary for U.S. tax managers was $101,806 as of November 2009.
Potential
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Workers in the accounting field can expect favorable job prospects according to the Bureau of Labor Statistics (BLS) "Occupational Outlook Handbook, 2010-11 Edition." Between 2008 and 2018, the BLS forecasts that accounting and auditing jobs will increase by 22 percent due to economic expansion. The BLS also predicts that companies will seek out accountants for guidance on complex taxation rules and other government laws regulating financial compliance. In addition, accountants will be needed to advise firms on how to improve internal systems and processes for tracking costs, monitoring cash flow and implementing IFRS.
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References
- Photo Credit financial report image by PaulPaladin from Fotolia.com
