Tax Accountant Duties

Tax accountants help clients prepare tax documents that comply with laws and regulations. Before tax season, these professionals assist clients in creating plans to meet financial goals. They keep clients updated during the filing process.

Tax accountants often work extended hours during tax time. Their responsibilities can include:

1. Analyse Financial Statements: Tax accountants work with clients to understand their overall financial situations. Accountants review financial statements to get the most precise view of a client's finances, making sure all materials adhere to tax laws and regulations;

2. Create Budget Plans: A primary responsibility of tax accountants is helping clients save money and adhere to a feasible budget. Accountants also help clients increase earnings and improve profitability. This includes explaining how income changes can affect clients' tax returns;

3. Organise Financial Records: Along with preparing tax returns, tax accountants help clients organise their personal financial records, keeping their client's information on file so they can access it when needed;

4. Compute Taxes: Tax accountants calculate the taxes their clients owe to the IRS and prepare their tax returns. They inform clients of any refund or balance due and ensure clients avoid penalties for missed deadlines;

5. Inspect Accounting Systems: Successful tax accountants review their accounting systems to ensure they are as efficient and effective as possible, which allows accountants to correct any issues or errors;

6. Communicate With Clients: Both individuals and business owners want to stay involved in their tax return process. It is essential for clients to understand the filing process and know what to expect with their tax return. Tax accountants must communicate with their clients and provide timely information.

Key Hard Skills for Tax Accountants

Knowledge of Tax Law

Tax accounting professionals rely on in-depth knowledge of all tax laws and regulations relevant to their clients.

Accounting Best Practices

Tax professionals must map forward paths based on raw data, relying on established best accounting practices. Key skills cover such areas as account analysis, financial reporting, auditing, and income and payroll taxation.

Accounting Software

Accountants increasingly depend on specialised software and cloud-based tech tools, and tax experts benefit from mastering both general and tax-specific accounting software.

Asset Management

Individuals and organisations rely on tax professionals for advice on reducing tax burdens. As such, excelling at strategic asset management is a key skill for tax experts.

Key Soft Skills for Tax Accountants

Advanced Numeracy

Like all tax and accounting personnel, tax experts work with large amounts of data. Tax professionals should be comfortable dealing with numbers and their real-world implications.

Time Management

Most tax accounting professionals get very busy during tax season, and they must excel at time management to avoid being overwhelmed.

Collaboration and Teamwork

Tax accounting experts regularly interact with clients to clarify financial details and provide advice. A collaborative outlook helps professionals manage the interpersonal side of their duties.

Attention to Detail

In tax accounting, small errors can lead to major liabilities. This profession has little room for error.

Tax Accountant Areas of Expertise

Tax accountants are already experts in a focused area of accounting practice. Some choose to pursue additional specialisation, which can broaden an accountant's appeal and enhance their professional profile.

Examples of concentrated areas of tax accounting expertise include:

1. Advisory Services

General accountants can advise clients on tax-related matters. However, tax specialists use proven methods to help clients legally lower their tax burdens. Tax advising requires strategic planning and comprehensive knowledge of tax laws.

Tax advisors must understand how to manage assets to improve taxation outcomes and understand how financial choices affect taxation. They should also know how to explain tax issues in simple terms.

Some tax advisory experts earn optional professional certifications, such as the certified financial planner designation.

Common Job Titles

• Income tax accountant.

• Tax specialist.

• Income tax specialist.

• Tax advisor.

• Tax consultant.

Certified Accounting

Some employers only hire tax accountants who have accounting certifications, such as certified chartered accountant, certified management accountant, and certified in financial forensics designations.

Many employers with more flexible policies still prefer to hire certified accounting professionals, and earning one or more of these certifications may expand career options.

Common Job Titles

• Certified chartered accountant.

• Certified management accountant.

• Forensic accountant.

Auditing

Auditors work in both external and internal capacities. External auditors usually work for accounting firms or government organisations, examining financial records for evidence of tax evasion or other financial crimes.

Internal auditors usually work for businesses, assessing their employer's financial activities and looking for possible performance improvements. Internal auditors also check company accounting procedures and ensure accurate financial reporting.

These seasoned professionals usually hold senior roles on accounting teams. Auditors master the specialisation through education and on-the-job training. Many hold formal credentials as certified internal auditors or certified fraud examiners.

Common Job Titles

• Tax auditor.

• Internal auditor.

2. Tax Agent

In the UK, a tax agent with qualifications is a professionally certified tax expert. Under HM Revenue and Customs (HMRC) regulations, these agents are authorised to perform a broader range of tasks for their clients. They can represent clients in resolving tax disputes and have the ability to present cases before UK tax authorities.

In essence, these UK tax agents possess enhanced legal authority to act on behalf of their clients, providing support in most tax-related legal matters for individuals or businesses.

If you still have questions after reading this article, our team will be happy to answer them!