The prospects and profit potential in tax accountancy is certainly promising. If you are interested in numbers and have an affinity for detail, you may excel in this challenging profession. Prediction is a risky thing when glancing out into the future, so before making a move, plan your future and research the career path.
In terms of history, understand the federal government has repealed only one tax in the past 226 years, and that was to finance the Spanish American War. It was finally repealed just before the first Gulf War. Aside from that, the taxes are on the books, and it is a fair bet that tax accountants’ services will be needed, for decades to come – a stable career, to say the least. Computerization should not be a job killer in the future, since the law’s complications require human input to use discretion in analyzing evidence and statements.
Salary and Education
The U.S. Bureau of Labor Statistics (BLS) reports that accountants, examiners, and auditors made a mean annual salary of $71,040 in May 2012. The BLS predicts that employment for accountants and auditors is going to increase 16%, far above the national average, from 2010 through 2020. This increase is because of the growing economy, new tax laws, and the need for accountants to examine financial documents and ensure greater transparency in financial reporting.
The road to becoming a tax accountant is a long process. The minimum educational requirement for a tax accountant position is usually a bachelor’s degree in accounting. States and employers often require additional education in the form of additional class work, certification, work experience, and/or a master’s degree. Alternate degrees that can lead to a career as a tax accountant include a specialization directed towards accounting and business administration.
A Gamut of Identifications
You can work for a company, a state or federal governmental operation, or work independently. Tax accountants primarily assist employers or clients with the filing of their state and federal taxes. While most firms typically hire accountants, some accountants find their own clients and are self-employed. A tax accountant meets, with each individual client, to determine his or her needs. Some clients want their taxes done for them, while others merely want a tax related question answered.
When an accountant files taxes for a client, he or she must request all of their necessary information, including pay stubs, financial documents and anything else that could be used for deductions. Once all that information is collected, the tax accountant looks for any deductions and analyzes them. This is where a tax accountant earns the fee and determines, verifies, and explains about the amount of taxes owed, to the client.
The tax account is a focused individual who needs to be abreast of the latest laws. The mean income of about $71,000 is well-earned because there will often be the need to study new laws or accounting procedures. One other drawback is that from late January until around May, you are consumed by the job because it is the peak season. Depending on what you are willing to put into the job, the average salary might amount to much less. The positives about this occupation are job stability and the potential for long-term mid-level salary.