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The differences between tax accountants and tax preparers can be seen in a few details. Each job has different responsibilities and duties. Additionally, a tax accountant has an average salary of $62,142, which is higher than the $51,020 average annual salary of a tax preparer.
The top three skills for a tax accountant include CPA, tax audits and income tax returns. The most important skills for a tax preparer are customer service, good communication, and exceptional client.
| Tax Accountant | Tax Preparer | |
| Yearly salary | $62,142 | $51,020 |
| Hourly rate | $29.88 | $24.53 |
| Growth rate | 6% | - |
| Number of jobs | 57,919 | 41,736 |
| Job satisfaction | - | 3 |
| Most common degree | Bachelor's Degree, 72% | Bachelor's Degree, 46% |
| Average age | 44 | 47 |
| Years of experience | 4 | - |
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.
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.
Tax accountants and tax preparers have different pay scales, as shown below.
| Tax Accountant | Tax Preparer | |
| Average salary | $62,142 | $51,020 |
| Salary range | Between $45,000 And $83,000 | Between $30,000 And $85,000 |
| Highest paying City | New York, NY | San Francisco, CA |
| Highest paying state | New York | Rhode Island |
| Best paying company | Pacific Investment Management Company LLC | Goldman Sachs |
| Best paying industry | Finance | Finance |
There are a few differences between a tax accountant and a tax preparer in terms of educational background:
| Tax Accountant | Tax Preparer | |
| Most common degree | Bachelor's Degree, 72% | Bachelor's Degree, 46% |
| Most common major | Accounting | Accounting |
| Most common college | University of Pennsylvania | University of Southern California |
Here are the differences between tax accountants' and tax preparers' demographics:
| Tax Accountant | Tax Preparer | |
| Average age | 44 | 47 |
| Gender ratio | Male, 47.3% Female, 52.7% | Male, 28.2% Female, 71.8% |
| Race ratio | 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% | 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 Percentage | 7% | 8% |