How to Become an Accountant or Tax Preparer
Every year, state and federal taxes must be paid. However, taking the time to fill out the tax forms by yourself can be challenging. To help ease the burden, accountants or tax preparers are there to help you. Keep in mind that tax preparers and accountants have more to offer than just preparing tax returns. For instance, tax preparers are able to accompany you to meetings with the Internal Revenue Service (IRS) if it becomes necessary to explain parts of your tax return. Accountants, in addition to preparing your tax returns, are also able to use their knowledge to develop an overall tax strategy, which can help you get through life-changing experiences such as retirement, divorce, or the closing of businesses.
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Instructions
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Finish high school or pass the General Education Development (GED) test. A diploma or GED enables you to meet criteria for tax preparation work in many states.
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Earn a bachelor's degree in accounting. Coursework includes courses such as auditing, statistics, federal taxation, and computer applications for accountants. Economics, finance and management are additional required courses. According to US News and World Report, the top six accounting programs are University of Texas at Austin, University of Pennsylvania, University of Chicago, University of Illinois at Champaign-Urbana, University of Michigan at Ann Arbor, and University of Southern California.
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Complete an accounting internship during college. College accounting programs usually require internships as part of the accounting major. Obtain letters of recommendation from previous supervisors and professors, put together a resume, write a cover letter and submit this information to prospective internship sites. Keep in mind that merely completing all required accounting courses is not sufficient to prepare for internship. In addition to coursework, you must demonstrate that you have had work experience, volunteer experience in the community and student life participation at your college. Hiring managers want to assess not only your academic skills, but also your values and interests.
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Take a course in tax preparation and then apply for state licensure in tax preparation. For example, contact a national tax preparation organization and enroll in a tax preparation course. Working with a national tax preparation organization enables you to learn the most up-to-date tax preparation methods. Also, national tax preparation organizations typically offer jobs to tax preparation professionals who complete training programs.
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Apply for a job as an accountant tax preparer upon college graduation. Seek a job with a national tax preparation organization. Or, seek a job with a less well-known local tax service, which offers jobs for tax preparers. Working with a national tax preparation organization is advantageous for new graduates because they tend to have more clients than smaller businesses. More clients means that your tax preparation job is more secure, which means you get more tax preparation experience.
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Become a certified public accountant (CPA) to improve your career options as a tax preparer. This is not required, but it can be helpful. According to the National Society of Accountants (NSA), 21 percent of accountants are CPAs. States differ in terms of the requirements for being a CPA. Some states require 150 credit hours of academic coursework plus the passing of the CPA exam while other states require the CPA exam combined with fewer credit hours of academic coursework. Although becoming a CPA can be challenging, according to the American Institute of Certified Public Accountants (AICPA), a major benefit of being a CPA is that they are seen as the most trusted business advisers. Higher pay and more job satisfaction are also advantages of becoming a CPA.
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References
- Education-Portal.com: Become a Tax Preparer Education and Career Roadmap
- LibertyTax.com: Tax Education
- USNews.com: Best Business Schools Specialty Rankings Accounting
- AICPA.org: AICPA Highlights
- Nsacct.org: The National Society of Accountants is the Association for "Main Street" Accounting and Tax Professionals
- Photo Credit tax forms image by Chad McDermott from Fotolia.com
