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.
Tax accountant responsibilities
Here are examples of responsibilities from real tax accountant resumes:
- 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
- Identify and document uncertain tax positions (ASC 740-10).
- Prepare property tax data from GL for import to OneSource software.
- Monitor recent tax legislation, state licensing and registration requirements by using CCH, LexisNexis services.
- Conduct research, using CCH and internet, perform financial analyses, prepare reports and assist with audits.
- Review all correspondence from the state, RIA, or BNA for any rate or other tax changes.
- Improve ASC 740 tax work papers with excel software by importing trial balance data from company's data warehouse directories.
- Assist with outside CPA firm documentation requests, including work paper preparation for annual income tax returns and quarterly partnership distributions.
- Communicate to CPA directors the estimated tax liability for clients under different income scenarios.
- Prepare annual GAAP and statutory federal tax provisions for assign companies timely and accurately.
Tax accountant skills and personality traits
We calculated that 9% of Tax Accountants are proficient in CPA, Tax Audits, and Income Tax Returns. They’re also known for soft skills such as Computer skills, Interpersonal skills, and Analytical skills.
We break down the percentage of Tax Accountants that have these skills listed on their resume here:
- CPA, 9%
Communicated to CPA directors the estimated tax liability for clients under different income scenarios.
- Tax Audits, 4%
Managed sales tax audits, including gathering/organizing/presenting transaction data and provides explanations and company process descriptions to auditors.
- Income Tax Returns, 4%
Reviewed and approved foreign tax credit calculations for publicly traded international corporations U.S. income tax returns and financial statements.
- Tax Research, 4%
Perform extensive tax research and preparation of financial models used to evaluate potential company acquisitions and property tax savings strategies.
- Reconciliations, 4%
Developed and prepared various balance sheet account reconciliations and subsidiary ledger reconciliations to the General Ledger and works to resolve differences.
- Financial Statements, 4%
Analyzed and reviewed monthly financial statements from seven business units and forward a summary to department director for review and approval.
"cpa," "tax audits," and "income tax returns" are among the most common skills that tax accountants use at work. You can find even more tax accountant responsibilities below, including:
Detail oriented. For certain tax accountant responsibilities to be completed, the job requires competence in "detail oriented." The day-to-day duties of a tax accountant rely on this skill, as "accountants and auditors must pay attention to detail when compiling and examining documents." For example, this snippet was taken directly from a resume about how this skill applies to what tax accountants do: "compiled detailed financial reports for fiscal and quarterly statements. "
Organizational skills. Another common skill required for tax accountant responsibilities is "organizational skills." This skill comes up in the duties of tax accountants all the time, as "strong organizational skills are important for accountants and auditors, who often work with a range of financial documents for a variety of clients." An excerpt from a real tax accountant resume shows how this skill is central to what a tax accountant does: "review organizational financial statements and records for necessary tax related issues. "
Communication skills. Lastly, "communication skills" is an important element of what a tax accountant does. Tax accountant responsibilities require this skill because "accountants and auditors must be able to listen to and discuss facts and concerns from clients, managers, and other stakeholders." This resume example highlights how tax accountant duties rely on this skill: "possess excellent organizational, communication and administrative skills. "
The three companies that hire the most tax accountants are:
- Deloitte204 tax accountants jobs
- Paro103 tax accountants jobs
- Robert Half58 tax accountants jobs
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Compare different tax accountants
Tax accountant vs. Certified public accountant
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.
While similarities exist, there are also some differences between tax accountants and certified public accountant. For instance, tax accountant responsibilities require skills such as "tax audits," "financial statements," "tax compliance," and "tax payments." Whereas a certified public accountant is skilled in "strong customer service," "customer service," "financial statement preparation," and "audit reports." This is part of what separates the two careers.
Certified public accountants tend to make the most money working in the finance industry, where they earn an average salary of $92,755. In contrast, tax accountants make the biggest average salary, $69,369, in the finance industry.On average, certified public accountants reach similar levels of education than tax accountants. Certified public accountants are 4.0% less likely to earn a Master's Degree and 0.2% more likely to graduate with a Doctoral Degree.Tax accountant vs. Tax analyst
A 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. Moreover, in a company setting, the responsibilities of a tax analyst revolve around coordinating with different departments to obtain all necessary documentation and financial information, maintaining accurate and extensive records of all transactions, and resolving any issues or concerns. Furthermore, it is essential to remain updated with all the tax laws, all while adhering to the policies and regulations of the company.
While some skills are similar in these professions, other skills aren't so similar. For example, resumes show us that tax accountant responsibilities requires skills like "cpa," "partnership tax returns," "excellent organizational," and "income statement." But a tax analyst might use other skills in their typical duties, such as, "client facing," "customer service," "asc," and "process improvement."
Tax analysts earn a lower average salary than tax accountants. But tax analysts earn the highest pay in the technology industry, with an average salary of $79,702. Additionally, tax accountants earn the highest salaries in the finance with average pay of $69,369 annually.Average education levels between the two professions vary. Tax analysts tend to reach similar levels of education than tax accountants. In fact, they're 1.6% less likely to graduate with a Master's Degree and 0.2% more likely to earn a Doctoral Degree.What technology do you think will become more important and prevalent for tax accountants in the next 3-5 years?
Terri Walsh
Professor/Program Manager, Accounting, Seminole State College of Florida
Tax accountant vs. Senior accountant analyst
As a senior accountant analyst, your main role is to provide professional guidance to a company. You need to have excellent preparation skills to create financial reports that clearly state the expenses and forecast the company's financial future. You should always aim for accuracy and compliance. Moreover, as a senior accountant analyst, you are supposed to give general operational assistance to the company's management.
The required skills of the two careers differ considerably. For example, tax accountants are more likely to have skills like "cpa," "tax audits," "income tax returns," and "tax research." But a senior accountant analyst is more likely to have skills like "external auditors," "financial analysis," "balance sheet accounts," and "payroll."
Senior accountant analysts make a very good living in the finance industry with an average annual salary of $89,199. On the other hand, tax accountants are paid the highest salary in the finance industry, with average annual pay of $69,369.When it comes to education, senior accountant analysts tend to earn similar degree levels compared to tax accountants. In fact, they're 1.8% less likely to earn a Master's Degree, and 0.3% less likely to graduate with a Doctoral Degree.Tax accountant vs. Accountant/consultant
Accountants/consultants perform accounting tasks for organizations or companies. The accountants improve accounting practices and prepare financial statements at the end of every year. They analyze financial data and offer advice on regulatory compliance issues to the finance department. It is their job to make sure that the online system is secure. Most of the day, they organize invoices, prepare statements, and supervising systems. They should be equipped with analytical skills, industry knowledge, critical thinking, and interpersonal communication.
Types of tax accountant
Updated January 8, 2025
