Accountant vs tax accountant

The differences between accountants 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 and a tax accountant. Additionally, a tax accountant has an average salary of $62,142, which is higher than the $54,890 average annual salary of an accountant.

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

Accountant vs tax accountant overview

	Accountant	Tax Accountant
Yearly salary	$54,890	$62,142
Hourly rate	$26.39	$29.88
Growth rate	6%	6%
Number of jobs	60,073	57,919
Job satisfaction	3	-
Most common degree	Bachelor's Degree, 71%	Bachelor's Degree, 72%
Average age	44	44
Years of experience	4	4

What does an accountant do?

An accountant is an individual whose primary task is to prepare, keep, examine, and interpret financial records. Most accountants are in charge of a wide scope of finance-related tasks, either for private individuals or for large-scale businesses and organizations they are employed with. They make sure that financial statements and records are accurate and comply with laws and regulations. They also compute for taxes, prepare tax returns, and ensure being paid properly and on time. As they keep track and record the flow of money, they can offer guidance on how to reduce costs, enhance revenue, and help in profit maximization.

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 vs tax accountant salary

Accountants and tax accountants have different pay scales, as shown below.

	Accountant	Tax Accountant
Average salary	$54,890	$62,142
Salary range	Between $41,000 And $72,000	Between $45,000 And $83,000
Highest paying City	Washington, DC	New York, NY
Highest paying state	New York	New York
Best paying company	Meta	Pacific Investment Management Company LLC
Best paying industry	Technology	Finance

Differences between accountant and tax accountant education

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

	Accountant	Tax Accountant
Most common degree	Bachelor's Degree, 71%	Bachelor's Degree, 72%
Most common major	Accounting	Accounting
Most common college	University of Pennsylvania	University of Pennsylvania

Accountant vs tax accountant demographics

Here are the differences between accountants' and tax accountants' demographics:

	Accountant	Tax Accountant
Average age	44	44
Gender ratio	Male, 38.2% Female, 61.8%	Male, 47.3% Female, 52.7%
Race ratio	Black or African American, 8.6% Unknown, 4.0% Hispanic or Latino, 10.9% Asian, 15.0% White, 61.1% 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 Percentage	7%	7%

Differences between accountant and tax accountant duties and responsibilities

Accountant example responsibilities.

Manage preparation of the statutory financial statements and financial aggregates in compliance with IFRS and local applicable norms.
Manage personnel financial matters including salaries, taxation procedures and other relate issues.
Manage and monitor accounting procedures for compliance with Sarbanes-Oxley and coordinate and facilitate external audit requirements.
Reconstruct and improve many balance sheet account reconciliations for easier reading and interpretation by senior level management.
Perform complex general accounting functions, including preparation of journal entries, account analysis and balance sheet reconciliations.
Maintain general ledgers and preparation of monthly and other periodic financial reports in accordance with GAAP and international accounting standards.

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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 vs tax accountant skills

Common accountant skills

Reconciliations, 14%
General Ledger Accounts, 6%
Account Reconciliations, 6%
GAAP, 5%
Payroll Tax Returns, 5%
Customer Service, 5%

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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Updated January 8, 2025

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