- Accounting Career Feature
How to Become a Tax Accountant
A tax accountant deals mainly with tax returns and ensuring the proper deductions have been claimed and the right amounts of taxes have been paid. To work in this field of accounting you need to have a Bachelor of Science in accounting, Business or a related field. You also need to have several paid work terms in which you apprentice with an accounting firm that specializes in tax preparation for both businesses and individuals. When you do get your first job after graduation, it will be an entry-level position in which you review tax returns at first to ensure there are no mistakes and eventually take on your own clients.
In addition to the educational qualifications you do need to have high ethical standards and knowledge of the tax laws for both the state and the federal governments. You do need to be continually reading about any changes to these laws that will have an impact on the tax returns you prepare for your clients. You will be very busy from February to May as this is the busiest time of the year for those in this area of accounting. However, when you work with clients who have businesses, you will be busy through the rest of the year as well as it is easier to maintain monthly records of transactions for tax purposes rather than leave everything to do at the end of the fiscal year.
As a tax accountant you need to have an affinity for working with numbers and be skilled in using both an adding machine and accounting software on the computer. In addition to your university degree, you will need to earn a CPA designation as a certified public accountant. This means studying for the four exams required for this certification. You can take the courses online, attend classes or study on your own. You must pass all four exams, with an average of 75 % in the first two exams and an average of 50% in the last two exams. These exams are quite hard and many of those people who take them do not pass all four the first time.
You do need to have experience working as an accountant or a tax accountant before you can qualify to write this exam. There are also specific courses leading to certification in the area of tax preparation and advice, such as the CFP (Certified Financial Planner) In this course you will take courses related to taxation for individuals, businesses, real estate and the self-employed which will give you the skills you need for preparing a wide variety of tax returns. Ethics is a big component of this course as is the state law of the state in which you practice.
Since various states have specific regulations regarding licensing and certification for tax accountants, you should check with your state to ensure that you meet these requirements. For example, in New York State, you must have at least 15 years of experience before you can become a CPA.
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