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Tax assistant vs tax preparer

The differences between tax assistants and tax preparers can be seen in a few details. Each job has different responsibilities and duties. Additionally, a tax preparer has an average salary of $51,020, which is higher than the $43,893 average annual salary of a tax assistant.

The top three skills for a tax assistant include individual tax returns, low-income families and income tax returns. The most important skills for a tax preparer are customer service, good communication, and exceptional client.

Tax assistant vs tax preparer overview

Tax AssistantTax Preparer
Yearly salary$43,893$51,020
Hourly rate$21.10$24.53
Growth rate--
Number of jobs29,30741,736
Job satisfaction-3
Most common degreeBachelor's Degree, 65%Bachelor's Degree, 46%
Average age4747
Years of experience--

What does a tax assistant do?

The tax assistant is responsible for supporting an organization's tax or accounting department. Their job is a combination of accounting support and administrative assistance. They should be able to run an office, as well as perform higher-level tasks, such as processing tax returns and sustaining databases. A tax assistant works under the direction of a tax manager or executive, but most of their duties are performed with less supervision. Tax assistants should also be dynamic and can comfortably work alone.

What does a tax preparer do?

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 assistant vs tax preparer salary

Tax assistants and tax preparers have different pay scales, as shown below.

Tax AssistantTax Preparer
Average salary$43,893$51,020
Salary rangeBetween $24,000 And $79,000Between $30,000 And $85,000
Highest paying CityNew York, NYSan Francisco, CA
Highest paying stateRhode IslandRhode Island
Best paying companyErnst & YoungGoldman Sachs
Best paying industryFinanceFinance

Differences between tax assistant and tax preparer education

There are a few differences between a tax assistant and a tax preparer in terms of educational background:

Tax AssistantTax Preparer
Most common degreeBachelor's Degree, 65%Bachelor's Degree, 46%
Most common majorAccountingAccounting
Most common collegeUniversity of Southern CaliforniaUniversity of Southern California

Tax assistant vs tax preparer demographics

Here are the differences between tax assistants' and tax preparers' demographics:

Tax AssistantTax Preparer
Average age4747
Gender ratioMale, 39.3% Female, 60.7%Male, 28.2% Female, 71.8%
Race ratioBlack or African American, 8.4% Unknown, 4.1% Hispanic or Latino, 15.3% Asian, 11.1% White, 60.5% American Indian and Alaska Native, 0.6%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 Percentage8%8%

Differences between tax assistant and tax preparer duties and responsibilities

Tax assistant example responsibilities.

  • Perform bank and account reconciliations and process monthly payroll using QuickBooks.
  • Offer orientation to CPA s and college students to complete their continue education credits and increase potential candidates.
  • Perform data entry of banking and expense information into QuickBooks and other accounting software reconciling the accounts at month end.
  • Assure filling completion per client folder by gathering clients and CPA approval signature, tax form printouts and documentation backup scans.
  • General QuickBooks information and data entry.
  • Complete IRS tax-preparation training and prepare and electronically file income taxes for individuals.
  • Show more

Tax preparer example responsibilities.

  • Verify data input and totals on forms prepare by others to detect errors in math, data entry, or procedures.
  • Follow IRS's guidelines in accurately preparing taxes and complete entries on forms, following tax form instructions and tax tables.
  • Prepare a wide range of tax returns, help prepare subscription agreements, and help small start-up companies comply with GAAP.
  • Perform monthly bank statement reconciliations and create monthly financial statements.
  • Assist outside real property tax appeal providers by providing information necessary for filing appeals.
  • Create engaging Microsoft PowerPoint sides about associate trading arrangements with transfer pricing policy for upcoming speeches for the group director.
  • Show more

Tax assistant vs tax preparer skills

Common tax assistant skills
  • Individual Tax Returns, 27%
  • Low-Income Families, 25%
  • Income Tax Returns, 11%
  • IRS, 5%
  • PowerPoint, 4%
  • Financial Statements, 4%
Common tax preparer skills
  • Customer Service, 27%
  • Good Communication, 14%
  • Exceptional Client, 8%
  • Math, 7%
  • Excellent Interpersonal, 6%
  • Taxable Income, 6%

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