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For new accounting grads one of the first questions they face when entering the job market is which of the accounting careers they should specialize in: tax or audit. The answer to that question depends on each individual person’s interests and strengths.
Which Classes Did You Enjoy More?
One obvious area to look at is which classes did you enjoy more and excel at in your college courses? Many people come out of college with a clear vision of what they don’t want to do because their college coursework in either tax or audit were either too difficult or just not fun. Obviously, if you hated your tax classes, working in the tax field is not going to change that. If your audit classes were too difficult, working in the audit field is not going to make it any easier.
April 15 and Other Deadlines
If you work in the tax field, the weeks leading up to April 15 are going to hold a special significance for you. Tax accountants can work some crazy hours trying to get everything done by the U.S. tax deadline of April 15. However, that is not the only busy time. There are also quarterly and monthly tax forms and reports that must be filed.
Accountants in the audit field also have deadlines and busy times depending on when their clients’ fiscal year ends. Some clients have a calendar year close, so the weeks leading up to December 31 can be a busy time. Other clients have a different fiscal year than the calendar year. Whenever the fiscal year ends, that is going to be the busiest time. Again, there will be monthly and quarterly reports that also need to be audited.
Potential Travel Involved
Depending on the size of the company you work for, accountants in the audit field could face a substantial amount of travel. If you work for an accounting company you will need to travel to your client’s businesses to conduct your audits. If you work for an internal audit department of a larger company, you will have to travel to your individual branches to conduct your field work. Tax accountants generally do not have to travel. The majority of their tax work and research will be done in their own offices.
Both Field Require Ongoing Education
To keep your CPA license current, accountants must complete a minimum amount of continuing education hours each year which will vary by state. If you are in the audit field, these hours can be on a variety of topics such as computers, ethics, industry standards, and more.
If you are in the tax field, the constantly changing tax law are something that you will have to stay on top of. Many large companies will send their tax accountants to annual conferences as well as giving them access to the latest tax publications in an effort to keep their tax accountants as current as possible.
Summary
If you go to work for a smaller company you may not even have to choose between the two accounting careers. Whichever branch of accounting you choose to specialize in, the field of accounting can be vastly rewarding and will keep you learning new aspects of accounting throughout your career.