Cost accountant vs tax accountant

The differences between cost 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 cost accountant and a tax accountant. Additionally, a tax accountant has an average salary of $62,142, which is higher than the $60,528 average annual salary of a cost accountant.

The top three skills for a cost accountant include reconciliations, variance analysis and GAAP. The most important skills for a tax accountant are CPA, tax audits, and income tax returns.

Cost accountant vs tax accountant overview

	Cost Accountant	Tax Accountant
Yearly salary	$60,528	$62,142
Hourly rate	$29.10	$29.88
Growth rate	6%	6%
Number of jobs	39,925	57,919
Job satisfaction	-	-
Most common degree	Bachelor's Degree, 77%	Bachelor's Degree, 72%
Average age	44	44
Years of experience	4	4

What does a cost accountant do?

A cost accountant specializes in determining the total cost incurred by a company from producing goods and services. Through the various financial data they collect, the cost accountant will devise plans and strategies that will be a vital factor in the next budget and marketing preparations of a company. Aside from this, a cost accountant is responsible for various tasks such as conducting research and analysis in different areas, keeping financial records and inventory, producing financial reports involving profitability and expenditures, and proposing a budget and other financial plans.

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.

Cost accountant vs tax accountant salary

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

	Cost Accountant	Tax Accountant
Average salary	$60,528	$62,142
Salary range	Between $45,000 And $81,000	Between $45,000 And $83,000
Highest paying City	Edison, NJ	New York, NY
Highest paying state	New Jersey	New York
Best paying company	Google	Pacific Investment Management Company LLC
Best paying industry	Energy	Finance

Differences between cost accountant and tax accountant education

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

	Cost Accountant	Tax Accountant
Most common degree	Bachelor's Degree, 77%	Bachelor's Degree, 72%
Most common major	Accounting	Accounting
Most common college	University of Pennsylvania	University of Pennsylvania

Cost accountant vs tax accountant demographics

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

	Cost Accountant	Tax Accountant
Average age	44	44
Gender ratio	Male, 52.6% Female, 47.4%	Male, 47.3% Female, 52.7%
Race ratio	Black or African American, 8.7% Unknown, 4.0% Hispanic or Latino, 11.0% Asian, 12.2% White, 63.7% 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 cost accountant and tax accountant duties and responsibilities

Cost accountant example responsibilities.

Manage ledgers and perform month end journal entries.
Manage the payroll with ADP system and account receivable.
Manage costing control as well as accounts payable (A/P) and accounts receivable (A/R).
Prepare internal financial reports for treasury manage accounts include in external compliance reports.
Prepare raw material and WIP inventory reconciliations.
Develop tracking of GAAP inventory valuation for all inventory inherit from the bankrupt former company.

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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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Cost accountant vs tax accountant skills

Common cost accountant skills

Reconciliations, 9%
Variance Analysis, 6%
GAAP, 4%
Account Reconciliations, 3%
Cost Analysis, 3%
Financial Analysis, 3%

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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