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.