what is a tax accountant?
Tax accountants work closely with businesses and individuals to help them prepare their taxes. Instead of clients visiting you once during tax season, they build long-term relationships with you as they trust you to manage part of their finances. Your annual tax plans help them track their finances and secure the biggest refund when you file on their behalf.
Tax accountants stay on top of province and federal tax laws, watching the news for recent changes. Your clients count on you to accurately file their taxes without audits or corrections. However, if your client engages in questionable behavior, you may work with the CRA during an audit.
With your expertise, your clients receive the biggest deductions. You'll itemize their deductions if they have varied expenses and the standard deduction isn't enough. You'll also provide advice throughout the year that reduces their tax burden while staying in line with the laws. For people who pay quarterly, you'll remind them about the dates so that they don't have a huge bill at the end of the year.
You'll warn your client about potential tax liabilities and advise them against potentially costly mistakes. While your services come with a fee, customers ultimately save money when they hire you.
Would working as a tax accountant suit your math skills? Then read on to find out what competencies and qualifications you need to thrive in a tax accountant role.
tax accountant jobsaverage tax accountant salary
The average salary of a tax accountant in Canada can vary depending on factors such as experience, location, and the size of the company. However, according to recent data, the average salary for a tax accountant in Canada ranges from $50,000 to $80,000 per year with a national average of around $65,000.
Some provinces in Canada are known to have higher salary ranges for tax accountants. These provinces include:
- Ontario: Ontario is home to many large corporations and financial institutions, which often require the services of tax accountants. As a result, tax accountants in Ontario tend to have higher salary ranges compared to other provinces.
- Alberta: Alberta's strong economy, particularly in the oil and gas industry, can lead to higher salaries for tax accountants. The province offers competitive compensation packages to attract and retain skilled professionals.
- British Columbia: British Columbia has a thriving business sector, including technology, film, and tourism industries. Tax accountants in this province can benefit from higher salaries due to the demand for their expertise. It's important to note that salary ranges can vary within each province based on factors such as the size of the company, industry, and individual qualifications.
types of tax accountant
Tax accountants can opt to specialize in specific areas of tax accounting:
- advisory services: tax advisors assist clients in legally minimizing their tax liability by having a deep understanding of federal, state, and local tax laws. They analyze financial decisions and provide guidance on managing assets to achieve favorable tax outcomes. Some tax advisory experts obtain professional certifications, such as the certified planner designation.
- certified accounting: certain employers prefer to hire tax accountants who hold accounting certifications. These certifications may include the CPA (Certified Public Accountant), certified management accountant, and certified financial forensics designations.
- auditing: external auditors, employed by accounting firms or governmental organizations, examine financial records to uncover evidence of tax evasion or financial crimes. Internal auditors, on the other hand, work within businesses to assess financial activities, identify areas for improvement, and ensure accurate financial reporting.
- enrolled agent: an Enrolled Agent is a specialized tax accounting expert who is certified to perform various duties for clients. These duties often involve representing clients in dispute resolution negotiations and advocating on their behalf before tax authorities like the CRA.
working as a tax accountant
Tax accountants need specialized degrees and skills to succeed in their job field. Learn how to prepare for becoming a tax accountant.
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tax accountant job description
What does a tax accountant do? Essentially, you take care of your clients' taxes to make their lives easier. Paying income tax is particularly challenging for businesses and freelancers because the government doesn't automatically deduct it from their earnings. You'll track their income so that they never underpay.
Tax season occurs once per year, but you'll work year-round so that your client is ready to file. Businesses often need to start weeks ahead of the deadline. Luckily, you'll keep everything organized to cut back on preparation time. You'll also advise your customer throughout the year. For example, if they're about to start investing, you'll discuss capital gains taxes on stocks or real estate. If your client's income increases, you'll talk about their new tax bracket.
Rebates, credits, and deductions will shave thousands of dollars off their total. In fact, you might turn a loss into a refund. However, you won't start looking for credits during tax season. You'll find deductions all year round so that your client makes the most out of every purchase. Many people don't know that they can deduct certain bills, office supplies, and other everyday costs--but they will once they hire you.
When questions arise, you'll explain technical issues in simple language that anyone can understand. You'll resolve issues by reviewing documentation and possibly working with the CRA. You're not a financial manager, but you're always up to date on the business's financial situation, making you the first point of contact for several people.
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tax accountant work environment
Tax accountants typically work indoors in office settings. Large companies may give you an office in their building, providing direct contact with supervisors and coworkers in the financial wing. You may spend time in meeting rooms, employers' offices, and the business's cafeteria and break room.
If you work for a private firm, you may work from home or commute to the firm's office. This offers more flexibility because you operate your workspace on your own terms. Some corporations offer work-from-home options and provide the software and equipment that you need. Either way, you'll likely still work on a set schedule.
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who are your colleagues?
If you work for a private firm, your coworkers will include other tax accountants servicing various clients. Tax accountants who work directly for businesses interact with other finance professionals, such as budget planners, payroll administrators, and internal auditors. Large corporations can have multiple accountants. Other colleagues may include CEOs, supervisors, HR managers, and international accountants. Periodically, you may interact with the CRA. Sometimes, you'll talk to other employees, such as customer service representatives.
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work schedule
Generally, tax accountants work during the week and have nights, weekends, and major holidays off. You can expect a regular 9 to 5 shift every day. However, you might have to work overtime when you're busy, especially during tax season. Clients might also want to reach you outside of your office hours.
Most tax accountants work full-time with 40 hours a week due to the level of responsibility involved. Part-time positions are most common as a supplement during tax season, but you might find one in another position and later become a full-time tax accountant. Typically, part-time jobs offer about 20 hours a week and fewer benefits.
Your job may involve unpaid research time, such as attending conferences and learning about new tax laws. Tax accountants rarely travel unless their client operates in a foreign country. If you have to travel, your employer may compensate you.
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job outlook for tax accountant
Tax accountants work in various industries, including bookkeeping, credit intermediation, payroll management, government agencies, and scientific consulting. If you're unsatisfied with your salary, other industries may offer a better paycheck. In particular, government jobs often provide strong benefits.
If you perform well, you could potentially work for the same company until you retire. People prefer to manage their finances with one trustworthy person instead of bouncing around with multiple accountants. You could use your experience and performance as leverage when negotiating a higher salary.
Related positions include payroll coordinator, financial analyst, and purchasing manager. In fact, you might interact with these people in your office. You could transfer to one of these positions or seek a higher title, such as Vice President of Accounting and Finance or senior accountant. If you work with fellow tax accountants, your supervisor could name you the team leader.
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advantages of finding a tax accountant job through Randstad
Working with Randstad offers you a range of benefits.
- always a contact person you can fall back on and ask for help from
- many training opportunities
- a range of jobs in your area
tax accountant skills and education
Training to be a tax accountant is very similar to other accounting positions:
- Bachelor’s degree: You'll need a degree in accounting, finance or a related field, as well as CPA or CMA certification.
- Master’s degree: This is not mandatory but additional training may be required depending on the type of organization you work for.
skills and competencies
Tax accountants are math experts. You perform quick, accurate calculations to keep your clients' finances in order. If you did well in algebra, calculus, geometry, and other subjects, you'll have the skills to excel in accounting. Similarly, you'll review financial documents and calculate tax credits, deductions, and other items.
Your clients will likely have lots of assets, purchases, investments, and charitable donations. You should know the difference between all the tax forms, and know which documents your client needs. Likewise, you'll fill out each form accurately and submit their taxes on time. Since it's your job to keep their documents organized, you should file ahead of schedule.
Other essential skills include:
- data analysis
- problem-solving
- knowledge of financial concepts
- attention to detail
- time management
- critical thinking
You'll communicate with several people throughout the week. When you write reports and present data, you'll make the information easy to understand. If you're part of a team, you'll effectively collaborate with everyone to get the work done. Tax accountants also answer questions and give advice in a timely, professional manner. You're not just working with numbers — you're helping clients succeed.
FAQs about working as a tax accountant
Here you will find answers to the most frequently asked questions about tax accountants.
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how much education do tax accountants need?
To become a tax accountant, you typically need to have at least a bachelor's degree in accounting or a related field. Some employers may also require a master's degree, professional certification (such as Certified Public Accountant or CPA), or relevant work experience.
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are tax accountants the same as regular accountants?
While they both manage finances, tax accountants specifically manage their clients' taxes while regular accountants focus on general subjects. You may interact with other specialized accountants, such as management accountants, auditors, and financial advisors. Some people start as general accountants and eventually specialize in taxes.
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who do tax accountants work for?
Tax accountants work for a variety of clients, including individuals, freelancers, small business owners, and CEOs. Government agencies, medical clinics, banks, non-profit organizations, insurance agencies, and technology consultants are a few of the groups that need your services. You can specialize in specific fields, such as legal matters.
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do tax accountants only work during tax season?
Your workload may increase during tax season, but tax accountants work all year round because your client regularly makes purchases and investments. Every decision they make could influence their taxes, so you'll advise them on maximizing their credits and deductions. Additionally, some customers make quarterly tax payments throughout the year instead of paying all at once.
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what makes tax accountants different from CPAs?
Chartered Professional Accountant have passed an exam that shows their knowledge after years of work and experience. Not all tax accountants are CPAs, but those who earned the certification often receive higher salaries. Employees in different fields, such as tax preparers, can also earn CPAs.
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how do I find a job as a tax accountant?
Finding a job near you as a tax accountant is easy. Search our job offers. Have you found what you're looking for? Then submit your application using the 'Apply' button top right on the page. No jobs available right now? Send us your resume, and we'll pass it on to a recruiter who will contact you if an opportunity opens up for you.
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