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How to become A Tax Preparer

Finance

A tax is a compulsory contribution paid by an individual to the government to facilitate welfare and equality for one and all. This welfare system functions efficiently due to the assistance of Tax Preparers, who conduct tax audits, research tax laws and submit the correct tax forms before deadlines. Continue Reading

Skills a career as a Tax Preparer requires: Finance Financial Accounting Tax Small Business Income Tax View more skills
Tax Preparer salary
$37,042
USAUSA
£28,931
UKUK
Explore Career
  • Introduction - Tax Preparer
  • What does a Tax Preparer do?
  • Tax Preparer Work Environment
  • Skills for a Tax Preparer
  • Work Experience for a Tax Preparer
  • Recommended Qualifications for a Tax Preparer
  • Tax Preparer Career Path
  • Tax Preparer Professional Development
  • Learn More
  • Conclusion

Introduction - Tax Preparer

A tax is a compulsory contribution paid by an individual to the government to facilitate welfare and equality for one and all. This welfare system functions efficiently due to the assistance of Tax Preparers, who conduct tax audits, research tax laws and submit the correct tax forms before deadlines.

Similar Job Titles Job Description
  • Income Tax Preparer
  • Certified Income Tax Preparer
  • Tax Specialist
  • Tax Consultant
  • Tax Advisor
  • Corporate Tax Preparer 
  • Tax Return Preparer

 

What does a Tax Preparer do?

What are the typical responsibilities of a Tax Preparer?

A Tax Preparer would typically need to:

  • Calculate, prepare, sign and file quarterly and annual tax compliance reports and returns before the settlement dates on behalf of individuals and businesses
  • Conduct tax audits of various types independently; assist monitoring bodies in state-sponsored tax audits
  • Research and interpret developments in legislative and regulatory tax laws
    Use tax reporting software; maintain tax balance on the general ledger
  • Conduct in-depth audits and computations to identify tax risks for clients; develop tax strategies to mitigate such risks and secure their financial futures
  • Provide consultancy services to private clients on tax residence and domicile matters such as creating family trusts, estate planning, indirect taxation and residence tax
  • Work on projects as assigned by the Tax Manager complying with tax law and revenue provisions
  • Ensure compliance with the necessary laws and rules for all tax procedures from filing taxes to submitting for returns
  • Develop healthy professional relationships with clients; gather information to explain options to them and educate them about best practices; create and share relevant presentations with them; liaise and negotiate on their behalf
  • Remain informed of changing economic and accounting trends that could impact how to file taxes

Tax Preparer Work Environment

Tax Preparers usually work in private or shared offices of their firms. Beginners work under supervision. You would typically collaborate with tax professionals and individual or corporate clients.

 

You may travel locally to meet with your current and prospective clients or visit corporate offices or government chambers, or libraries. Those in senior positions are likely to travel to other towns and cities overnight at least.

 

Absence from home and overseas travel are occasionally needed, especially for senior managers. International assignments are a possibility if you work with multinational companies.

Work Schedule

Tax Preparers work full time from 9 a.m to 5 p.m, Monday to Friday. You may work beyond the 40-hour work schedule during the end of every financial year to meet deadlines. Some firms offer you flexible working hours.
Part-time and freelance job opportunities are also available.

Employers

Finding a new job might seem challenging. Tax Preparers can boost their job search by asking their network for referrals, contacting companies directly, using job search platforms, going to job fairs, and inquiring at staffing agencies.

 

Tax Preparers are generally employed by:

  • Professional Accountancy Firms
  • Tax Consultancies & Practices
  • Finance Departments of Large Companies
  • In-House Tax Departments of Companies
  • Financial Services
  • Banks
  • Law Firms 
  • Energy-Producing Companies
  • Construction and Manufacturing Companies 
  • IT Companies
  • Media Houses
Unions / Professional Organizations

Professional associations and organisations, such as the Institute of Management Accountants, are crucial for a Tax Preparer interested in pursuing professional development or connecting with like-minded professionals in their industry or occupation.

 

Membership in one or more adds value to your resume while bolstering your credentials and qualifications.

Workplace Challenges
  • Difficulties involved in preparing taxes with rising cross-border services
  • Meeting deadlines and maintaining or expanding your practice without sacrificing your physical and mental health
  • Trying to harmonise the expectations of your clients with your practice and emerging technology
  • Improving your resilience at work and making the changes you need to attract and retain talent
  • Staying updated on changes in tax laws, crackdowns on expense claims related to work, and changing economies

 

Work Experience for a Tax Preparer

Any academic program that a potential Tax Preparer takes up typically requires a period of supervised experience, such as an internship.

 

Pre-entry experience via vacation placements, internships or workshops, especially in your final years of academics, is highly recommended. If possible, seek opportunities in large firms of chartered accountants. Try to work with, or shadow qualified tax advisers. Some firms offer familiarisation courses.

 

Experience in areas such as accountancy, banking or financial services is also helpful.

 

Read about the profession and interview or job shadow expert Tax Preparers to prove your commitment to course providers and prospective employers.

Recommended Qualifications for a Tax Preparer

Employers prefer to hire candidates who have at least a high school diploma or its equivalent. You must be proficient in math and computer applications and also have a thorough understanding of tax laws.

 

Some employers prefer to hire candidates who have completed an associate or bachelor’s degree in relevant subjects such as accountancy & finance, business, economics, law, management, statistics or mathematics.

 

You may choose to acquire a master’s degree in relevant subjects such as taxation or business administration to enhance your job prospects.

 

You may also enter the field if you hold a professional qualification in chartered or certified accountancy, particularly if it includes taxation. Qualifications as solicitors, barristers, advocates or company secretaries are also valid to become Tax Preparers.

 

Direct entry without a degree may be possible if you join independent firms or smaller practices of accountants and solicitors or the in-house tax departments of commercial or industrial organisations as a tax apprentice or tax trainee.

Certifications, Licenses and Registration

Certification demonstrates a Tax Preparer’s competence in a skill set, typically through work experience, training, and passing an examination. Tax Preparers typically require an identification number to work professionally.

Tax Preparer Career Path

Performance, experience, and the acquisition of professional qualifications drive career progression. Employees with consistently high levels of performance may be eligible for promotion every two to three years.

 

Career progression depends on your skill, determination and professional qualifications gained. Moreover, opportunities for Tax Preparers are diverse and frequently in flux because of changing economies.

 

Tax Preparers may open their services once they have gained sufficient experience. You may even consider taking exams relevant to your location to represent your clients before the government’s revenue services during tax audits or investigations.

 

You may choose to pursue public practice to handle personal or corporate tax work. Larger firms allow you to pick specialisations within corporate finance, mergers and acquisitions, private clients and international tax.

 

You may also pursue more general financial roles, as being a Tax Preparer gives you the skill to enter areas such as consultancy, commerce, and law.

Job Prospects

Candidates with a bachelor’s degree in tax & accounting paired and the proper certification supported by logical thinking and analytical skills have the best job prospects.

Tax Preparer Professional Development

Continuing professional development (CPD) will help an active Tax Preparer build personal skills and proficiency through work-based learning, a professional activity, formal education, or self-directed learning. It allows you to upskill continually, regardless of your age, job, or level of knowledge. 

 

Consider attending webinars or vocational school courses to practice the necessary accounting skills you may require at your workplace and research tax laws to gear up for clients’ queries.

 

Large companies usually give their Tax Preparers courses and training on the accounting, taxation, scheduling, data management and spreadsheet software used. Tax trainees learn to complete tax returns, help with tax compliance regulations, conduct research, compile reports, and deal with diverse clients. They may work as members of corporate tax teams for accountancy firms or practices or large independent firms.

Professional certifications such as the Certified Public Accountant (CPA) require the completion of continuing education credits to ensure the credentials remain valid

Learn More

Types of Tax Preparation Professional


In general, there are four categories of Tax Preparation Professionals.

 

Tax Preparers for Chains or Local Outlets

 

These professionals have training and experience at varying levels. If there is any complexity in the returns they deal with, some of these preparers may not have enough know-how to maximise certain deductions.

 

Many of these Tax Preparers do this as a second job.

 

Enrolled Agents

 

Enrolled Agents are professionals licensed by the government. They complete required credit hours every year in tax regulations and accounting methods and are experts in planning taxes and tax returns. 

 

Certified Public Accountants

 

Certified Public Accountants can guide an individual through complex financial situations and configure an overall tax plan for an individual. 

 

Tax Attorneys

 

Tax attorneys usually work with clients who have large assets and business dealings or for those interested in sheltering part of their income. With more corporate experience and a thorough understanding of tax laws, they are helpful while settling tax disputes. However, they may not be as qualified in preparing actual tax returns.

 

Common Interview Questions for Tax Specialists

 

Every company takes a different approach to interviews, but there are usually common topics that you may be asked about in an interview.

 

Some of these topics are the companies or clients you have supported earlier, the research you would do to tackle an unfamiliar situation, your strategy to handle tax season work, and your ways of staying current with the latest legislative changes.

Potential Pros & Cons of Freelancing vs Full-Time Employment

 

Freelancing Tax Preparers have more flexible work schedules and locations. They have full ownership of the business and can select their projects and clients. However, they experience inconsistent work and cash flow, which means more responsibility, effort and risk.

A full-time Tax Preparer, on the other hand, has company-sponsored health benefits, insurance, and retirement plans. They have job security with a fixed, reliable source of income and guidance from their bosses. Yet, they may experience boredom due to a lack of flexibility, ownership, and variety.

 

When deciding between freelancing or being a full-time employee, consider the pros and cons to see what works best for you. 

Conclusion

Tax Preparers handle personal and sensitive financial details of their clients’ life with utmost professionalism and sincerity. If you thrive under pressure while also remaining careful with the information, Tax Preparer is an excellent career choice for you!

Advice from the Wise

Always remain up to date on changing laws. Strengthen your analytical and logical reasoning abilities to meet deadlines and maintain the confidentiality of your client’s financial information.

Did you know?

Taxpayers spend $27.7 billion annually to prepare their taxes, and 60% of them hire a tax preparer for assistance.

Introduction - Tax Preparer
What does a Tax Preparer do?

What do Tax Preparers do?

A Tax Preparer would typically need to:

  • Calculate, prepare, sign and file quarterly and annual tax compliance reports and returns before the settlement dates on behalf of individuals and businesses
  • Conduct tax audits of various types independently; assist monitoring bodies in state-sponsored tax audits
  • Research and interpret developments in legislative and regulatory tax laws
    Use tax reporting software; maintain tax balance on the general ledger
  • Conduct in-depth audits and computations to identify tax risks for clients; develop tax strategies to mitigate such risks and secure their financial futures
  • Provide consultancy services to private clients on tax residence and domicile matters such as creating family trusts, estate planning, indirect taxation and residence tax
  • Work on projects as assigned by the Tax Manager complying with tax law and revenue provisions
  • Ensure compliance with the necessary laws and rules for all tax procedures from filing taxes to submitting for returns
  • Develop healthy professional relationships with clients; gather information to explain options to them and educate them about best practices; create and share relevant presentations with them; liaise and negotiate on their behalf
  • Remain informed of changing economic and accounting trends that could impact how to file taxes
Tax Preparer Work Environment
Work Experience for a Tax Preparer
Recommended Qualifications for a Tax Preparer
Tax Preparer Career Path
Tax Preparer Professional Development
Learn More
Did you know?
Conclusion

Holland Codes, people in this career generally possess the following traits
  • R Realistic
  • I Investigative
  • A Artistic
  • S Social
  • E Enterprising
  • C Conventional
United Nations’ Sustainable Development Goals that this career profile addresses
Decent Work and Economic Growth Industry, Innovation and Infrastructure Reducing Inequality