How to Choose a Career in Tax Accounting or TaxationSeptember 30, 2022
If you’re considering a career in accounting or taxation, here are a few things to consider. Salary and specialization are important considerations, but they’re not the only ones. Consider education, experience, and training. These tips can help you choose a career in tax accounting or taxation that’s right for you.
Tax accountants specialize in tax laws, rules, and calculations, and offer a wide variety of tax-related services. Accountants in Rockhampton advise on accounting compliances. These professionals can help individuals, businesses, and governments maximize their savings and minimize penalties. Many tax accountants work as in-house employees in businesses, while others are employed by payroll service providers, accounting firms, or as independent contractors. In addition to tax return preparation, tax accountants also offer other services to businesses, including financial planning and audits.
There are many career paths available for tax accountants, and many of them lead to management positions in companies. Others advance to the position of internal auditor or budget director. Still others work their way up to top executive positions, including Chief Financial Officer and Financial Vice President. In addition, tax accountants may pursue advanced accounting degrees online.
To become a tax accountant, it is essential to have a college degree. Most tax accountants have a bachelor’s degree, and some also complete a master’s degree. In addition to learning about financial accounting, taxation, auditing, and cost accounting, master’s programs also teach management skills and other related subjects.
Both legal and accounting school curriculums can benefit from incorporating more tax law material into the curriculum. In particular, students in business school can benefit from tax law classes, which tend to focus more on compliance issues than on the more advanced topics of tax planning, preparation, and litigation. By incorporating more case law into their classes, students can better understand how to apply tax statutes in different circumstances.
Obtaining professional certifications is also helpful. Most employers prefer tax accountants who have certifications in accounting. A Certified Public Accountant (CPA) or a Certified Management Accountant (CMA) designation are two common certifications for tax accountants. The latter certification is especially useful if the tax accountant will eventually work in a supervisory role.
Tax accountants earn a competitive salary that is similar to other types of accountants. Their pay rates tend to be higher than the national average, but vary by location. In the northeast, the highest-paid tax accountants earn around $88,000 a year. The federal government also pays highly for this type of job.
The education level of a tax accountant also affects their compensation. A bachelor’s degree is generally enough to start a career, but a master’s degree offers even better earning potential. The BLS 2020 data shows that professionals with a master’s degree earn 18% more than those with only a bachelor’s degree. Those with more education and experience also have more career options, as they can move up in the company through promotions, increased responsibility, and even leadership positions.
Entry-level tax accountant salaries start at $56,500. After one to three years, a tax accountant may earn $75,500. Senior tax accountants in public accounting firms earn up to $110,000.