Tax preparer vs contract preparer

The differences between tax preparers and contract 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 $40,071 average annual salary of a contract preparer.

Tax preparer vs contract preparer overview

	Tax Preparer	Contract Preparer
Yearly salary	$51,020	$40,071
Hourly rate	$24.53	$19.26
Growth rate	-	-5%
Number of jobs	41,736	8,493
Job satisfaction	3	-
Most common degree	Bachelor's Degree, 46%	Bachelor's Degree, 54%
Average age	47	47
Years of experience	-	-

Tax preparer vs contract preparer salary

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

	Tax Preparer	Contract Preparer
Average salary	$51,020	$40,071
Salary range	Between $30,000 And $85,000	Between $19,000 And $83,000
Highest paying City	San Francisco, CA	-
Highest paying state	Rhode Island	-
Best paying company	Goldman Sachs	-
Best paying industry	Finance	-

Differences between tax preparer and contract preparer education

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

	Tax Preparer	Contract Preparer
Most common degree	Bachelor's Degree, 46%	Bachelor's Degree, 54%
Most common major	Accounting	Business
Most common college	University of Southern California	University of Pennsylvania

Tax preparer vs contract preparer demographics

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

	Tax Preparer	Contract Preparer
Average age	47	47
Gender ratio	Male, 28.2% Female, 71.8%	Male, 37.8% Female, 62.2%
Race ratio	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%	Black or African American, 9.1% Unknown, 3.8% Hispanic or Latino, 12.4% Asian, 8.3% White, 65.8% American Indian and Alaska Native, 0.5%
LGBT Percentage	8%	8%

Differences between tax preparer and contract preparer duties and responsibilities

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.

Contract preparer example responsibilities.

Create operational efficiencies by effectively managing databases containing RFP library responses and approve responses to request revisions to form agreements.
Create operational efficiencies by effectively managing databases containing RFP library responses and approve responses to request revisions to form agreements.
Prepare bank reconciliations and general ledger maintenance for multiple clients using QuickBooks software.

Tax preparer vs contract preparer skills

Common tax preparer skills

Customer Service, 27%
Good Communication, 14%
Exceptional Client, 8%
Math, 7%
Excellent Interpersonal, 6%
Taxable Income, 6%

Common contract preparer skills

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Updated January 8, 2025

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