A tax accountant is responsible for keeping the client abreast of the changing tax laws and regulations. A tax accountant also follows the generally accepted accounting principles (GAAP) when preparing financial statements and tax returns. These standards adhere to state and federal tax accounting requirements. Tax accountants also keep up with the latest trends in the business world. These professionals must have strong mathematical and business skills. They must be highly educated in various accounting software programs. Some of the most common tax accounting software programs include Intuit QuickBooks, Microsoft Access, and Oracle PeopleSoft. Published here view publisher site

To avoid making a tax mistake, be prepared with identification details. You will need your social security number and that of your dependents. It is important to provide accurate information, because incorrect information often results in the IRS sending back hundreds of tax returns. You may also wish to bring a second form of identification, such as a driver’s license, military ID, or state-issued picture ID. A good tax accountant should be able to answer all of your questions about tax law.

The accounting process considers all receipts, including money that is taxed. It also calculates the accounting profit. Different types of receipts have different income-tax rates. Table 1 shows an example of tax accounting categorization. A tax accountant should know the difference between GAAP and tax accounting. For example, pre-tax income on the income statement may not be equivalent to taxable income. If this is the case, you can use a tax-accounting service to offset the current-year losses.

A tax accountant works with the Internal Revenue Service. The IRS oversees this process and requires you to use certain forms. While it is optional to hire a professional tax accountant, hiring one is a must-do if you have a business. Because business taxes are far more complex than personal taxes, it is best to hire a professional. And if you don’t have a team of accountants, consider outsourcing your accounting work.

Licensed tax accountants generally have a bachelor’s degree in accounting. Some may choose to pursue additional coursework to earn a master’s degree in accounting. However, the requirements for tax accountants vary from state to state. Most employers require three to five years of experience. They may also choose to hire new graduates for positions within their firms. If you are considering working as a tax accountant, make sure you meet the requirements to become a certified public accountant.

While you don’t have to be a CPA to become a tax accountant, earning a CPA credential will give you more job opportunities and a better salary. An EA, on the other hand, requires five years of experience in tax accounting and passes an exam specific to individual tax returns. Once you have the necessary credentials and experience, you can also consider becoming an Accredited Tax Advisor. They will also be able to handle more complicated tax situations.