If you are studying or thinking of studying accounting, it’s important to be aware of the different roles and titles that exist within the field of accounting—one of which is tax accounting. Tax accounting can be challenging, but it is also highly rewarding. Keep reading to learn more about tax accountants and what they do.  

What Is a Tax Accountant?

Unlike traditional accountants who work with their clients’ financial statements, tax accountants focus solely on taxes. They help their clients abide by all tax laws that apply to them and offer tax planning advice (often on a yearly basis) to help them reach their financial goals and protect them from having to pay too much in taxes.  

What Does a Tax Accountant Do?

Prepare Tax Documents

One of the primary roles of tax accountants is to prepare all the necessary tax return documents to help their clients follow all tax rules and regulations. Prior to tax season, tax accountants will work with their clients to make the tax process as easy as possible by determining tax strategies that can defer, minimize, or eliminate tax payments.   Tax accountants prepare tax documents for a variety of clients, including individuals, public and private companies, nonprofit organizations, and government agencies.  

Tax Planning

If left unresolved, tax ramifications can be quite severe, especially for businesses. Tax accountants can help protect their clients through tax planning—which includes understanding the clients’ goals, as well as interpreting tax law to help them achieve them.   Tax accountants assess their clients’ financial needs by analyzing their investment income statements, pay stubs, and more in order to create a plan that can help them reach their financial goals. However, one of the main aims of tax planning is to minimize income tax by developing long-term plans to save money over time.  

What Skills Does a Tax Accountant Need?

Since tax accounts work in a somewhat specialized field, they need to have a certain set of skills:

• Excellent communication skills. Whether tax accountants work with a business or an individual client, it’s extremely important that they have exceptional communication and listening skills. Understanding their clients’ unique needs and clearly communicating expectations, results, and requirements is vital to properly conduct tax planning.

• Time management skills. Tax accountants often work long hours, especially during tax season. Since the amount of work they do is subject to change, it’s important that they have strong time management skills to manage their workload at any moment.

• Attention to detail. Tax accountants perform several important tasks, including reviewing financial statements, arranging audits, filing returns, and more. Attention to detail and the ability to multitask will therefore greatly benefit tax accountants.

• Critical thinking. Tax accountants are not only expected to interpret tax law and its changes but also to explain it to their clients. This requires a strong understanding of the subject as well as the analytical skills needed to understand and communicate the implications of any changes.

Tax accounting is an ideal field for people who enjoy problem-solving, working with numbers, and facing challenges. If you’re interested in a career in tax accounting, take a look at the Accounting, Payroll, and Tax diploma program at Computek College. With this program, you will acquire theoretical knowledge and practical skills of accounting, income tax, Bookkeeping & Accounting, payroll, QuickBooks, and more!   If you are interested in an introductory accounting course with an emphasis on computer skills and tax accounting, call us today at 416-321-9911 or visit our website to learn more.