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Accounting analyst vs tax accountant

The differences between accounting analysts 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 accounting analyst and a tax accountant. Additionally, a tax accountant has an average salary of $62,142, which is higher than the $58,399 average annual salary of an accounting analyst.

The top three skills for an accounting analyst include reconciliations, customer service and account reconciliations. The most important skills for a tax accountant are CPA, tax audits, and income tax returns.

Accounting analyst vs tax accountant overview

Accounting AnalystTax Accountant
Yearly salary$58,399$62,142
Hourly rate$28.08$29.88
Growth rate6%6%
Number of jobs81,09757,919
Job satisfaction--
Most common degreeBachelor's Degree, 74%Bachelor's Degree, 72%
Average age4444
Years of experience44

What does an accounting analyst do?

An accounting analyst is responsible for supporting the accounting operations of an organization, analyzing financial transactions and financial statements, and resolving account discrepancies. Accounting analysts interpret financial data by consolidating account transactions, performing account reconciliation, and managing account receivables. They also assist in preparing and releasing invoices, issuing billing statements, and creating comprehensive financial reports on the company's budget and expenses. An accounting analyst must have excellent knowledge of the accounting principles and disciplines, as well as extensive analytical and communication skills to perform duties and meet deadlines under minimal supervision.

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.

Accounting analyst vs tax accountant salary

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

Accounting AnalystTax Accountant
Average salary$58,399$62,142
Salary rangeBetween $42,000 And $79,000Between $45,000 And $83,000
Highest paying CitySan Francisco, CANew York, NY
Highest paying stateNew YorkNew York
Best paying companyGooglePacific Investment Management Company LLC
Best paying industryFinanceFinance

Differences between accounting analyst and tax accountant education

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

Accounting AnalystTax Accountant
Most common degreeBachelor's Degree, 74%Bachelor's Degree, 72%
Most common majorAccountingAccounting
Most common collegeUniversity of PennsylvaniaUniversity of Pennsylvania

Accounting analyst vs tax accountant demographics

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

Accounting AnalystTax Accountant
Average age4444
Gender ratioMale, 41.6% Female, 58.4%Male, 47.3% Female, 52.7%
Race ratioBlack or African American, 8.7% Unknown, 4.0% Hispanic or Latino, 11.0% Asian, 14.3% White, 61.6% 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 accounting analyst and tax accountant duties and responsibilities

Accounting analyst example responsibilities.

  • Manage and process all ACH, EFT and wire transfer transactions daily (debit or credits).
  • Manage reconciling monthly discrepancies between ERP transfers.
  • Manage budget submissions by subsidiaries in Europe/AFNE region in Hyperion.
  • Establish investment objectives to efficiently manage IPO proceeds within state risk parameters.
  • Maintain accounting controls by following GAAP and internal accounting policies; maintain financial security by following internal controls.
  • Review and approve monthly general ledger and bank account reconciliations for special condition accounts to ensure procedural consistency and compliance.
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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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Accounting analyst vs tax accountant skills

Common accounting analyst skills
  • Reconciliations, 12%
  • Customer Service, 7%
  • Account Reconciliations, 6%
  • GAAP, 5%
  • Strong Analytical, 4%
  • Payroll, 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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