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How to hire a Tax Accountant

Tax accountant hiring summary. Here are some key points about hiring tax accountants in the United States:

  • The median cost to hire a tax accountant is $1,633.
  • It takes between 36 and 42 days to fill the average role in the US.
  • HR departments typically allocate 15% of their budget towards recruitment efforts.
  • Small businesses spend $1,105 per tax accountant on training each year, while large companies spend $658.
  • It takes approximately 12 weeks for a new employee to reach full productivity levels.
  • There are a total of 510,739 tax accountants in the US, and there are currently 57,919 job openings in this field.
  • New York, NY, has the highest demand for tax accountants, with 46 job openings.

How to hire a tax accountant, step by step

To hire a tax accountant, consider the skills and experience you are looking for in a candidate, allocate a budget for the position, and post and promote the job opening to reach potential candidates. Follow these steps to hire a tax accountant:

Here's a step-by-step tax accountant hiring guide:

  • Step 1: Identify your hiring needs
  • Step 2: Create an ideal candidate profile
  • Step 3: Make a budget
  • Step 4: Write a tax accountant job description
  • Step 5: Post your job
  • Step 6: Interview candidates
  • Step 7: Send a job offer and onboard your new tax accountant
  • Step 8: Go through the hiring process checklist

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.

Learn more about the specifics of what a tax accountant does
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  1. Identify your hiring needs

    The tax accountant hiring process starts by determining what type of worker you actually need. Certain roles might require a full-time employee, whereas part-time workers or contractors can do others.

    Determine Employee vs Contractor Status
    Is the person you're thinking of hiring a US citizen or green card holder?

    A tax accountant's background is also an important factor in determining whether they'll be a good fit for the position. For example, tax accountants from different industries or fields will have radically different experiences and will bring different viewpoints to the role. You also need to consider the candidate's previous level of experience to make sure they'll be comfortable with the job's level of seniority.

    This list shows salaries for various types of tax accountants.

    Type Of Tax AccountantDescriptionHourly Rate
    Tax AccountantAccountants and auditors prepare and examine financial records. They ensure that financial records are accurate and that taxes are paid properly and on time... Show More$21-39
    Certified Public AccountantA 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... Show More$23-57
    Tax AnalystA tax analyst specializes in managing and filing tax forms and tax returns, all while devising strategies to reduce tax payments legally. A tax analyst may work as a member of a company or independently... Show More$20-41
  2. Create an ideal candidate profile

    Common Skills:
    • CPA
    • Tax Audits
    • Income Tax Returns
    • Tax Research
    • Reconciliations
    • Financial Statements
    • Tax Compliance
    • Tax Payments
    • Tax Software
    • OneSource
    • Tax Planning
    • Local Tax Returns
    • Tax Issues
    • GAAP
    Check All Skills
    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
    More Tax Accountant duties
  3. Make a budget

    Including a salary range in your tax accountant job description is one of the best ways to attract top talent. A tax accountant can vary based on:

    • Location. For example, tax accountants' average salary in idaho is 53% less than in district of columbia.
    • Seniority. Entry-level tax accountants 46% less than senior-level tax accountants.
    • Certifications. A tax accountant with certifications usually earns a higher salary.
    • Company. Working for an established firm or a new start-up company can make a big difference in a tax accountant's salary.

    Average tax accountant salary

    $62,142yearly

    $29.88 hourly rate

    Entry-level tax accountant salary
    $45,000 yearly salary
    Updated January 22, 2025

    Average tax accountant salary by state

    RankStateAvg. SalaryHourly Rate
    1New York$78,454$38
    2New Jersey$73,872$36
    3Massachusetts$72,267$35
    4Virginia$68,872$33
    5California$65,762$32
    6Washington$64,518$31
    7Maryland$64,052$31
    8Illinois$62,477$30
    9North Carolina$61,567$30
    10Georgia$60,760$29
    11Texas$60,252$29
    12Pennsylvania$59,785$29
    13Colorado$58,992$28
    14Michigan$58,467$28
    15Ohio$57,708$28
    16Minnesota$57,677$28
    17Alabama$55,667$27
    18Missouri$55,555$27
    19Indiana$55,462$27
    20Florida$55,297$27

    Average tax accountant salary by company

    RankCompanyAverage SalaryHourly RateJob Openings
    1Pacific Investment Management Company LLC$109,670$52.733
    2Invesco$104,579$50.284
    3Cisco$102,514$49.29
    4eBay$97,999$47.112
    5Edwards Lifesciences$97,957$47.093
    6Franklin Templeton$97,068$46.673
    7Western Digital$96,994$46.6322
    8Atlassian$91,017$43.76
    9Fanatics$90,676$43.5912
    10Nokia$90,375$43.451
    11Amphenol$90,140$43.34
    12Nabors Holding Company$89,338$42.951
    13Nomura Securities$89,122$42.85
    14Ernst & Young$88,767$42.681,421
    15Epicor$86,737$41.70
    16Ameresco$85,725$41.212
    17Oracle$85,653$41.1844
    18Citi$85,537$41.1219
    19Pluralsight$85,164$40.94
    20Build-A-Bear Workshop$84,173$40.47
  4. Writing a Tax Accountant Job Description

    A job description for a tax accountant role includes a summary of the job's main responsibilities, required skills, and preferred background experience. Including a salary range can also go a long way in attracting more candidates to apply, and showing the first name of the hiring manager can also make applicants more comfortable. As an example, here's a tax accountant job description:

    Tax Accountant job description example

    The Leidos Corporate Tax Department is seeking a Tax Accountant to join our team of tax professionals supporting our Corporate Office located in Reston, VA. This position will report to the Tax Manager.

    The Tax Accountant will be part of the Corporate Tax team and will assist in all aspects of the preparation of the worldwide income tax provision. The Tax Accountant will also assist the Company's external service providers to ensure successful completion of all income tax compliance, including coordinating with internal teams to gather relevant data. The Candidate should be a strong communicator, detail oriented, a team player who enjoys tax and is interested in being part of an organization committed to continuous growth.
    Primary Responsibilities:
    Assist in preparing the income tax provision and related financial statement disclosures on a quarterly and annual basis, including foreign tax provisions and provision-to-return adjustments Prepare various supporting analyses for the income tax provision, including valuation allowance and uncertain tax positions Gather evidence and support related to internal controls and making sure the Company adheres to SOX protocols Assist external auditors in completing their review each reporting period Prepare and analyze monthly tax account reconciliations and related adjusting journal entries Maintain tax calendar and ensure filings are made timely Gather and analyze data from various systems (general ledger, contracts, etc.) and Corporate Accounting to provide to external service providers Coordinate with external service providers to prepare federal, state and foreign income tax filings, including extensions and estimates throughout the year Review various state and foreign income tax returns prepared by external service providers Assist in tracking and processing tax payments in a timely manner Assist in responding to federal, state and international tax notices and audits

    Basic Qualifications:
    Bachelor's Degree in Accounting, Tax or related field and minimum of 2 years of progressive experience in accounting (corporate/public); OR Master's degree in Accounting, Tax, or relevant field and 1-2 years of relevant accounting experience.Strong knowledge of accounting and tax principles, practices, and proceduresA quick learner who is flexible and willing to take on new challenges and roles Energetic and have a high sense of urgency and able to prioritize workload in order to meet competing deadlines in a fast-paced work environmentA high level of confidence and integrity, detail oriented, creative and self-motivated, able to take a hands-on approach to problem solving and a team player with a positive attitude Effective verbal and written communication skills Strong computer and technology skills, including proficiency in Microsoft ExcelMust be comfortable with virtual communications and working with geographically disparate groups Must be authorized to work in the U.S

    Preferred Qualifications:
    Big 4 public accounting experience Master's Degree in Taxation/Certified Public AccountantExperience with OneSource Tax Provision

    Pay Range:
    Pay Range $52,650.00 - $81,000.00 - $109,350.00

    The Leidos pay range for this job level is a general guideline only and not a guarantee of compensation or salary. Additional factors considered in extending an offer include (but are not limited to) responsibilities of the job, education, experience, knowledge, skills, and abilities, as well as internal equity, alignment with market data, applicable bargaining agreement (if any), or other law.
  5. Post your job

    To find tax accountants for your business, try out a few different recruiting strategies:

    • Consider internal talent. One of the most important talent pools for any company is its current employees.
    • Ask for referrals. Reach out to friends, family members, and your current work to ask if they know any tax accountants they would recommend.
    • Recruit at local colleges. Attend job fairs at local colleges to recruit entry-level tax accountants with the right educational background.
    • Social media platforms. LinkedIn, Facebook, and Twitter have more than 3.5 billion users, and they're a great place for company branding and reaching potential job candidates.
    To find tax accountant candidates, you can consider the following options:
    • Post your job opening on Zippia or other job search websites.
    • Use niche websites that focus on engineering and technology jobs, such as efinancialcareers, financialjobsweb.com, careerbank, financial job bank.
    • Post your job on free job posting websites.
  6. Interview candidates

    Recruiting tax accountants requires you to bring your A-game to the interview process. The first interview should introduce the company and the role to the candidate as much as they present their background experience and reasons for applying for the job. During later interviews, you can go into more detail about the technical details of the job and ask behavioral questions to gauge how they'd fit into your current company culture.

    It's also good to ask about candidates' unique skills and talents to see if they match your ideal candidate profile. If you think a candidate is good enough for the next step, you can move on to the technical interview.

    The right interview questions can help you assess a candidate's hard skills, behavioral intelligence, and soft skills.

  7. Send a job offer and onboard your new tax accountant

    Once you have selected a candidate for the tax accountant position, it is time to create an offer letter. In addition to salary, the offer letter should include details about benefits and perks that are available to the employee. Ensuring your offer is competitive is vital, as qualified candidates may be considering other job opportunities. The candidate may wish to negotiate the terms of the offer, and it is important to be open to discussion and reach a mutually beneficial agreement. After the offer has been accepted, it is a good idea to formalize the agreement with a contract.

    It's also good etiquette to follow up with applicants who don't get the job by sending them an email letting them know that the position has been filled.

    Once that's done, you can draft an onboarding schedule for the new tax accountant. Human Resources should complete Employee Action Forms and ensure that onboarding paperwork is completed, including I-9s, benefits enrollment, federal and state tax forms, etc. They should also ensure that new employee files are created for internal recordkeeping.

  8. Go through the hiring process checklist

    • Determine employee type (full-time, part-time, contractor, etc.)
    • Submit a job requisition form to the HR department
    • Define job responsibilities and requirements
    • Establish budget and timeline
    • Determine hiring decision makers for the role
    • Write job description
    • Post job on job boards, company website, etc.
    • Promote the job internally
    • Process applications through applicant tracking system
    • Review resumes and cover letters
    • Shortlist candidates for screening
    • Hold phone/virtual interview screening with first round of candidates
    • Conduct in-person interviews with top candidates from first round
    • Score candidates based on weighted criteria (e.g., experience, education, background, cultural fit, skill set, etc.)
    • Conduct background checks on top candidates
    • Check references of top candidates
    • Consult with HR and hiring decision makers on job offer specifics
    • Extend offer to top candidate(s)
    • Receive formal job offer acceptance and signed employment contract
    • Inform other candidates that the position has been filled
    • Set and communicate onboarding schedule to new hire(s)
    • Complete new hire paperwork (i9, benefits enrollment, tax forms, etc.)
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How much does it cost to hire a tax accountant?

Recruiting tax accountants involves both the one-time costs of hiring and the ongoing costs of adding a new employee to your team. Your spending during the hiring process will mostly be on things like promoting the job on job boards, reviewing and interviewing candidates, and onboarding the new hire. Ongoing costs will obviously involve the employee's salary, but also may include things like benefits.

Tax accountants earn a median yearly salary is $62,142 a year in the US. However, if you're looking to find tax accountants for hire on a contract or per-project basis, hourly rates typically range between $21 and $39.

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