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A tax accountant helps their clients prepare financial statements and submit tax documentation. Tax accountants need the right education and training in order to keep their clients and companies protected from tax law changes and regulations.
Continue reading to learn how to become CPA credentialed tax accountant.
Earn a Bachelor’s Degree
Tax accountants can either earn a general accounting degree or specialize their degree in tax accountancy. These degrees will help students acquire a solid background in law, economics, taxation and relevant quantitative methods and information systems. More importantly, students will learn how to apply the Generally Accepted Accounting Principles (GAAP) within specific industries and to business applications.
Students will also learn about state and federal income tax procedures and requirements for commercial enterprises. Students will learn the teamwork, communication and decision making skills needed to excel in their positions.
Select the Right Courses
Students who are in a general accounting degree program will need to take the right courses. Basic classes start out with intermediate accounting, which covers the concepts and practices associated with corporate accounting issues. This includes leases, pensions, income recognition and employment taxes. These are followed by advanced accounting classes that cover complex theories and industry practices related to business combinations, inter-corporate investments and foreign currency management.
Classes on auditing will examine the roles that technology and the auditor play in corporate accountability and taxation transparency. Classes on global accounting will introduce students to international issues and perspective on taxation. Students will learn about global taxation and accounting issues, such as revenue recognition and valuation allowances.
Start Your Career
Recently graduates can start their careers as accounting, bookkeeper and administrative assistants. A good example of an entry-level position is an accounting clerk. In a tax service or consulting company, they will provide administrative support to licensed CPAs. They process, distribute and ensure that tax returns are filed before deadlines. This requires them to monitor turnaround times and due date systems. To accomplish all of this, they must be able to professionally conduct themselves with clients while working under pressure. Being able to produce high quality work while maintaining confidentiality at all times is also important. Strong technical skills, such as familiarity with the E-file system, are recommended.
Continuing Education
When it comes to business taxation, the Securities and Exchange Commission (SEC) requires that accountants be licensed Certified Public Accountants (CPAs). The specific licensure requirements vary by state, but almost all require candidates to complete at least 150 semester hours at an accredited. Because this is 30 hours more than what is required for a four-year degree, most aspiring tax accountants pursue a master’s degree. A master of science in accounting program will prepare students for their future certified public accountant (CPA) exam. The curriculum in these programs focuses on generating and analyzing accounting data. They also teach students compliance strategies, department management tools and quality improvement processes. Corporate tax decisions related to business transactions, such as mortgages and liquidation, are also covered.
Once the tax accountant passes the CPA exam, which is administered by the American Institute of Certified Public Accountants, they maintain accreditation through completing continuing education coursework.