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Accountant vs tax preparer

The differences between accountants and tax preparers can be seen in a few details. Each job has different responsibilities and duties. Additionally, an accountant has an average salary of $54,890, which is higher than the $51,020 average annual salary of a tax preparer.

The top three skills for an accountant include reconciliations, general ledger accounts and account reconciliations. The most important skills for a tax preparer are customer service, good communication, and exceptional client.

Accountant vs tax preparer overview

AccountantTax Preparer
Yearly salary$54,890$51,020
Hourly rate$26.39$24.53
Growth rate6%-
Number of jobs60,07341,736
Job satisfaction33
Most common degreeBachelor's Degree, 71%Bachelor's Degree, 46%
Average age4447
Years of experience4-

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 preparer do?

A tax preparer is responsible for preparing and processing the tax obligations of an organization. Tax preparers' duties include calculating tax returns, reviewing financial statements and make adjustments as needed, analyzing deductible expenses and credits, and adhering to the tax regulations and legislation procedures at all times. A tax preparer must have excellent knowledge of the tax processes and timely updated with the recent changes and updates within the financial industry. Tax preparers should have impeccable analytical and critical thinking skills to manage account statements for business and individual clients.

Accountant vs tax preparer salary

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

AccountantTax Preparer
Average salary$54,890$51,020
Salary rangeBetween $41,000 And $72,000Between $30,000 And $85,000
Highest paying CityWashington, DCSan Francisco, CA
Highest paying stateNew YorkRhode Island
Best paying companyMetaGoldman Sachs
Best paying industryTechnologyFinance

Differences between accountant and tax preparer education

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

AccountantTax Preparer
Most common degreeBachelor's Degree, 71%Bachelor's Degree, 46%
Most common majorAccountingAccounting
Most common collegeUniversity of PennsylvaniaUniversity of Southern California

Accountant vs tax preparer demographics

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

AccountantTax Preparer
Average age4447
Gender ratioMale, 38.2% Female, 61.8%Male, 28.2% Female, 71.8%
Race ratioBlack 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, 10.9% Unknown, 4.1% Hispanic or Latino, 18.1% Asian, 10.3% White, 56.1% American Indian and Alaska Native, 0.6%
LGBT Percentage7%8%

Differences between accountant and tax preparer 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 preparer example responsibilities.

  • Verify data input and totals on forms prepare by others to detect errors in math, data entry, or procedures.
  • Follow IRS's guidelines in accurately preparing taxes and complete entries on forms, following tax form instructions and tax tables.
  • Prepare a wide range of tax returns, help prepare subscription agreements, and help small start-up companies comply with GAAP.
  • Perform monthly bank statement reconciliations and create monthly financial statements.
  • Assist outside real property tax appeal providers by providing information necessary for filing appeals.
  • Create engaging Microsoft PowerPoint sides about associate trading arrangements with transfer pricing policy for upcoming speeches for the group director.
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Accountant vs tax preparer skills

Common accountant skills
  • Reconciliations, 14%
  • General Ledger Accounts, 6%
  • Account Reconciliations, 6%
  • GAAP, 5%
  • Payroll Tax Returns, 5%
  • Customer Service, 5%
Common tax preparer skills
  • Customer Service, 27%
  • Good Communication, 14%
  • Exceptional Client, 8%
  • Math, 7%
  • Excellent Interpersonal, 6%
  • Taxable Income, 6%

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