Working as a tax accounting professional means bringing together the stringent legal requirements of tax compliance with the reporting needs of management for businesses both large and small. It also can mean assisting individuals with preparing their income tax returns each year. For most clients in the U.S., tax accounting professionals prepare federal income tax returns, including forms 1040, as well as various state income tax returns.
Tax accounting professionals working with individuals may only see their clients once a year to prepare their annual income tax returns, or they may see those clients that have a high net worth more often. They will assist these clients in long term investing strategies that present tax savings opportunities as well as providing guidance on the best time to make large purchases, give gifts and even buy property.
Those tax accounting professionals working for corporations also spend a great deal of their time on identifying tax savings opportunities. They collect data from across their organizations in order to provide guidance to decision makers and calculate a tax provision to be included in their accounting records. A tax provision indicates the expected tax expense or benefit that is expected to be realized on the company's financial statements. This number can have a material effect on the business's profitability, and as a result, the steps that tax accounting professionals take to change a tax liability into a tax benefit are very important to the overall financial health of the organization.
The first steps into becoming a tax accounting professional require a bachelor's degree in accounting. While it is possible to edge into a position as a tax accounting professional with a bachelor's degree in another discipline, to do so will typically require experience in general accounting or a master's degree in accounting. To succeed in this field, however, will require certification as a Certified Public Accountant. This designation requires the candidate to pass an exam and to have 150 credits. As a result, more and more tax accounting professionals have master's degrees in business, accounting or taxation.
Ben Franklin once said that, "The only things that are certain in life are death and taxes." He might not have meant it as a compliment, but the reality is that positions for tax accounting professionals are plentiful and are not going away anytime soon. They are available across the country, pay well and offer interesting opportunities.
Data provided by the Bureau of Labor Statistics
The salary range for Tax Accounting begins around $36,720 and usually tops out around $102,380, with a mean in the neighborhood of $69,550. This is about 60% higher than the national average for annual salaries.
In order to qualify for most Tax Accounting positions, you typically need to have a Bachelor's Degree or higher.
Data provided by the Bureau of Labor Statistics
The growth outlook for Tax Accounting careers is estimated at about 22% while the estimated growth for all career fields over that same span is at about 10.12%. Over the next six years, Tax Accounting jobs are expected to grow at a 117% higher rate than the national average for annual salaries.