For people who enjoy playing around with numbers and who absolutely relish the prospects of finding legal loopholes in America’s voluminous tax code, becoming a tax accountant is killing two birds with one stone! If you are from this group of people or would like to belong, read this article about how to become a tax accountant.
- Expert knowledge of tax laws, rates and exemptions for different kinds of entities – individuals, firms, corporations, etc.
- Staying on top of clients’ annual tax obligations, preparing relevant documentation and filing timely returns.
- Explore ways and means of lowering clients’ tax liability through legal and legitimate methods.
- Have a working knowledge of the industry or field in which clients work or operate.
- Tax accountants can be self-employed, work in large accounting firms, federal and state tax departments or on the payrolls of large corporations, managing the entire tax accounting portfolio for the corporation and its various subsidiaries.
Salaries for a tax accountant start at about 50k and can go to 100k and more, based on qualifications, seniority in the organization and work experience.
- A high school diploma is mandatory, getting a GED equivalent instead of a diploma may not suffice,
- Higher education requirements call for a bachelor’s degree in accounting, smaller tax accounting firms may accept an associate degree or a certificate in accounting for entry-level positions, though this is not the norm.
- Complete certification requirements to become a Certified Public Accountant (CPA), though this is not a mandatory requirement.
- Obtaining a master’s degree in accounting will increase career growth opportunities and compensation levels.
- 5.Licensing requirements vary from state to state; check out the prescribed licensure requirements in the state where you plan to work or practice as a tax accountant.
- Other qualifications and skills required to become a tax accountant include computer literacy, knowledge of tax preparation and calculation software, communication and people management skills to handle clients who’ll come from all walks of life, attention to detail and meticulousness, a creative and logical thought process, plus the ability to think ‘out of the box’.
While studying or preparing for certification, look for short-term job opportunities as an intern or trainee in accounting firms or large companies with a separate tax accounting department to get some valuable practical experience. This will also come in handy when you start looking for jobs on completion of your education and certification.