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Certified public accountant vs tax accountant

The differences between certified public 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 a certified public accountant and a tax accountant. Additionally, a certified public accountant has an average salary of $76,693, which is higher than the $62,142 average annual salary of a tax accountant.

The top three skills for a certified public accountant include CPA, customer service and IRS. The most important skills for a tax accountant are CPA, tax audits, and income tax returns.

Certified public accountant vs tax accountant overview

Certified Public AccountantTax Accountant
Yearly salary$76,693$62,142
Hourly rate$36.87$29.88
Growth rate6%6%
Number of jobs78,79257,919
Job satisfaction--
Most common degreeBachelor's Degree, 69%Bachelor's Degree, 72%
Average age4444
Years of experience44

What does a certified public accountant do?

A certified public accountant (CPA) acts as an advisor to small businesses and chief financial officers to Fortune 500 companies. They typically work for both small and large public accounting firms. They offer advice on many issues, such as accounting and taxation. They aid businesses and individuals to plan and achieve their financial goals. There are several requirements to become a CPA, including having a degree in accounting, passing the CPA examination, and obtaining a CPA license to practice.

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.

Certified public accountant vs tax accountant salary

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

Certified Public AccountantTax Accountant
Average salary$76,693$62,142
Salary rangeBetween $49,000 And $119,000Between $45,000 And $83,000
Highest paying CityWashington, DCNew York, NY
Highest paying stateNew JerseyNew York
Best paying companyApplied MaterialsPacific Investment Management Company LLC
Best paying industryFinanceFinance

Differences between certified public accountant and tax accountant education

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

Certified Public AccountantTax Accountant
Most common degreeBachelor's Degree, 69%Bachelor's Degree, 72%
Most common majorAccountingAccounting
Most common collegeUniversity of PennsylvaniaUniversity of Pennsylvania

Certified public accountant vs tax accountant demographics

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

Certified Public AccountantTax Accountant
Average age4444
Gender ratioMale, 43.2% Female, 56.8%Male, 47.3% Female, 52.7%
Race ratioBlack or African American, 8.5% Unknown, 4.0% Hispanic or Latino, 10.8% Asian, 12.4% White, 64.0% 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 certified public accountant and tax accountant duties and responsibilities

Certified public accountant example responsibilities.

  • Mentor highly skil accounting and tax management team to achieve establish objectives including conformity with GAAP compliance.
  • Maintain monthly client bookkeeping including bank reconciliations, account payable and prepare preliminary financial statements for CPA review.
  • Conduct bookkeeping, bank reconciliations and generate general ledgers as well as raise concerns about expenditure classifications and revenue recognition.
  • Prepare and review month-end close, including journal entries, general ledger account reconciliations, and financial statement supporting documentation.
  • Gain a working knowledge of audit objectives and procedures in compliance with GAAP and GAAS.
  • Prepare and monitor audit programs, assist management in design and monitoring of SOX compliance programs.
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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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Certified public accountant vs tax accountant skills

Common certified public accountant skills
  • CPA, 48%
  • Customer Service, 22%
  • IRS, 7%
  • State Tax Returns, 5%
  • Payroll Tax Returns, 2%
  • Financial Statement Preparation, 1%
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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