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Tax preparer vs tax consultant

The differences between tax preparers and tax consultants can be seen in a few details. Each job has different responsibilities and duties. Additionally, a tax consultant has an average salary of $66,737, 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 consultant are CPA, tax planning, and tax issues.

Tax preparer vs tax consultant overview

Tax PreparerTax Consultant
Yearly salary$51,020$66,737
Hourly rate$24.53$32.09
Growth rate-6%
Number of jobs41,73639,379
Job satisfaction3-
Most common degreeBachelor's Degree, 46%Bachelor's Degree, 63%
Average age4747
Years of experience--

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.

What does a tax consultant do?

Tax consultants are experts in providing commercially centered tax advice and tax services to wide-ranging clients who function in all sectors of the economy. The work they do involves devising tax-efficient strategies for international and domestic-based clients in various business situations, including takeovers, company merges, and corporate reconstructions. They work continually to help clients ensure that the best business decisions are met. They also monitor and get ahead of possible changes concerning tax legislation and responding fast with guidance specific to their clients' tax requirements.

Tax preparer vs tax consultant salary

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

Tax PreparerTax Consultant
Average salary$51,020$66,737
Salary rangeBetween $30,000 And $85,000Between $47,000 And $93,000
Highest paying CitySan Francisco, CAHartford, CT
Highest paying stateRhode IslandRhode Island
Best paying companyGoldman SachsCargill
Best paying industryFinanceFinance

Differences between tax preparer and tax consultant education

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

Tax PreparerTax Consultant
Most common degreeBachelor's Degree, 46%Bachelor's Degree, 63%
Most common majorAccountingAccounting
Most common collegeUniversity of Southern CaliforniaUniversity of Southern California

Tax preparer vs tax consultant demographics

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

Tax PreparerTax Consultant
Average age4747
Gender ratioMale, 28.2% Female, 71.8%Male, 52.7% Female, 47.3%
Race ratioBlack 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, 10.5% Unknown, 4.1% Hispanic or Latino, 17.0% Asian, 10.4% White, 57.6% American Indian and Alaska Native, 0.6%
LGBT Percentage8%8%

Differences between tax preparer and tax consultant 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.
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Tax consultant example responsibilities.

  • Manage the training and use of new FactSet products and enhancements with various client bases including portfolio management and performance teams.
  • Maintain and generate the process of structuring and conducting business transactions to ensure that GAAP procedures are followed.
  • Develop, maintain, and ensure accounting policies and procedures are in accordance with company member agreements & GAAP.
  • Prepare returns and consult on tax and accounting issues for own clients as well as contract work for other CPA firms.
  • Work closely with CPA on data verification and documentations processing.
  • Save customers thousands of dollars on Mexico-U.S. cross-border taxation advisory.
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Tax preparer vs tax consultant skills

Common tax preparer skills
  • Customer Service, 27%
  • Good Communication, 14%
  • Exceptional Client, 8%
  • Math, 7%
  • Excellent Interpersonal, 6%
  • Taxable Income, 6%
Common tax consultant skills
  • CPA, 13%
  • Tax Planning, 7%
  • Tax Issues, 6%
  • Taxation, 6%
  • Tax Research, 5%
  • Income Tax Returns, 5%

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