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Accountant-contractor vs tax accountant

The differences between accountant-contractors and tax accountants can be seen in a few details. Each job has different responsibilities and duties. It typically takes 2-4 years to become both an accountant-contractor and a tax accountant. Additionally, a tax accountant has an average salary of $62,142, which is higher than the $56,906 average annual salary of an accountant-contractor.

The top three skills for an accountant-contractor include reconciliations, general ledger accounts and payroll taxes. The most important skills for a tax accountant are CPA, tax audits, and income tax returns.

Accountant-contractor vs tax accountant overview

Accountant-ContractorTax Accountant
Yearly salary$56,906$62,142
Hourly rate$27.36$29.88
Growth rate6%6%
Number of jobs60,02457,919
Job satisfaction--
Most common degreeBachelor's Degree, 72%Bachelor's Degree, 72%
Average age4444
Years of experience44

What does an accountant-contractor do?

An accountant contractor directly manages a customer's business. The contractor works exclusively on the company and organizes all its financial reports. The accountant contractor controls, inspects, and encodes all the company's financial transactions, ensuring that everything is well-accounted for and adequately documenting its activities. The contractor must be licensed, have expert skills in accountancy, be well-organized, have a high level of communication skills, and work under pressure.

What does a tax accountant do?

A tax accountant is an individual who works with clients to produce tax return documents that follow tax laws and regulations while keeping them updated on their return information. Tax accountants must determine tax strategies for their clients that may minimize or eliminate tax payments while arranging audits with taxation authorities. They prepare tax documents for different clients, including private companies, non-profit organizations, and private individuals. Tax accountants are also required to obtain a bachelor's degree in accounting and should understand business concepts.

Accountant-contractor vs tax accountant salary

Accountant-contractors and tax accountants have different pay scales, as shown below.

Accountant-ContractorTax Accountant
Average salary$56,906$62,142
Salary rangeBetween $44,000 And $73,000Between $45,000 And $83,000
Highest paying CityNewark, NJNew York, NY
Highest paying stateNew JerseyNew York
Best paying companyBroadridgePacific Investment Management Company LLC
Best paying industryEnergyFinance

Differences between accountant-contractor and tax accountant education

There are a few differences between an accountant-contractor and a tax accountant in terms of educational background:

Accountant-ContractorTax Accountant
Most common degreeBachelor's Degree, 72%Bachelor's Degree, 72%
Most common majorAccountingAccounting
Most common collegeUniversity of PennsylvaniaUniversity of Pennsylvania

Accountant-contractor vs tax accountant demographics

Here are the differences between accountant-contractors' and tax accountants' demographics:

Accountant-ContractorTax Accountant
Average age4444
Gender ratioMale, 43.8% Female, 56.2%Male, 47.3% Female, 52.7%
Race ratioBlack or African American, 8.9% Unknown, 4.0% Hispanic or Latino, 11.2% Asian, 12.1% White, 63.3% American Indian and Alaska Native, 0.5%Black or African American, 8.2% Unknown, 3.9% Hispanic or Latino, 10.5% Asian, 15.5% White, 61.4% American Indian and Alaska Native, 0.5%
LGBT Percentage7%7%

Differences between accountant-contractor and tax accountant duties and responsibilities

Accountant-contractor example responsibilities.

  • Manage and monitor accounting procedures for compliance with Sarbanes-Oxley and coordinate and facilitate external audit requirements.
  • Assist in preparing tax returns and financial statements and record various transactions in QuickBooks
  • Recommend processes and tasks to prepare SOX reviews and questions.
  • Assist CPA with all require tax documents, reports and follow up.
  • Assist in ACH process of setting up new vendor for direct deposit.
  • Consult with CPA on behalf of business presenting all financial materials to prepare for end-of-year taxes.
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Tax accountant example responsibilities.

  • Utilize QuickBooks to manage client data and prepare necessary financial statements.
  • Manage and prepare sales and use tax account reconciliations and property tax liability accounts and prepare corresponding journal entries.
  • Prepared/Review financial statements according to GAAP and propose adjusting entries for clients.
  • Prepare tax returns for corporations, partnerships, non-profit organizations and individuals.
  • Work with various accounting departments, with duties such as account reconciliations, customer service, and administrative/clerical positions.
  • SAP, ONESOURCE, YESWIN, and BSAEfiling
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Accountant-contractor vs tax accountant skills

Common accountant-contractor skills
  • Reconciliations, 14%
  • General Ledger Accounts, 9%
  • Payroll Taxes, 5%
  • Balance Sheet Accounts, 5%
  • Account Reconciliations, 5%
  • Purchase Orders, 4%
Common tax accountant skills
  • CPA, 9%
  • Tax Audits, 4%
  • Income Tax Returns, 4%
  • Tax Research, 4%
  • Reconciliations, 4%
  • Financial Statements, 4%

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