Explore jobs
Find specific jobs
Explore careers
Explore professions
Best companies
Explore companies
The differences between tax preparers and tax advisors can be seen in a few details. Each job has different responsibilities and duties. Additionally, a tax advisor has an average salary of $58,252, which is higher than the $51,020 average annual salary of a tax preparer.
The top three skills for a tax preparer include customer service, good communication and exceptional client. The most important skills for a tax advisor are local tax returns, reconciliations, and customer service.
| Tax Preparer | Tax Advisor | |
| Yearly salary | $51,020 | $58,252 |
| Hourly rate | $24.53 | $28.01 |
| Growth rate | - | - |
| Number of jobs | 41,736 | 76,710 |
| Job satisfaction | 3 | - |
| Most common degree | Bachelor's Degree, 46% | Bachelor's Degree, 54% |
| Average age | 47 | 47 |
| Years of experience | - | - |
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 Advisors are responsible for providing tax advice to clients in the area of tax legislation and tax obligations. Their duties include researching tax legislation, gathering client information, submitting tax returns, liaising with internal revenue service representing clients, and developing tax strategies. They are responsible for performing tax computations, forming family trusts, undertaking estate planning as well as consulting on matters regarding domicile and tax residence. Tax Advisors also give advice related to indirect taxation and prepare reports.
Tax preparers and tax advisors have different pay scales, as shown below.
| Tax Preparer | Tax Advisor | |
| Average salary | $51,020 | $58,252 |
| Salary range | Between $30,000 And $85,000 | Between $29,000 And $116,000 |
| Highest paying City | San Francisco, CA | Cumberland, RI |
| Highest paying state | Rhode Island | New Hampshire |
| Best paying company | Goldman Sachs | DLA Piper |
| Best paying industry | Finance | Energy |
There are a few differences between a tax preparer and a tax advisor in terms of educational background:
| Tax Preparer | Tax Advisor | |
| Most common degree | Bachelor's Degree, 46% | Bachelor's Degree, 54% |
| Most common major | Accounting | Accounting |
| Most common college | University of Southern California | University of Southern California |
Here are the differences between tax preparers' and tax advisors' demographics:
| Tax Preparer | Tax Advisor | |
| Average age | 47 | 47 |
| Gender ratio | Male, 28.2% Female, 71.8% | Male, 36.6% Female, 63.4% |
| 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, 9.7% Unknown, 4.0% Hispanic or Latino, 17.6% Asian, 10.1% White, 58.0% American Indian and Alaska Native, 0.6% |
| LGBT Percentage | 8% | 8% |