When I was studying for my business degree I explored several career options in the field of accounting and auditing. A job as a tax preparer seemed interesting to me because it involved a working knowledge of tax laws, general accounting procedures and different types of tax documents. Although I eventually pursued a career in the marketing field, I did take a close look at tax preparer job descriptions and requirements.
A career as a tax preparer can be very financially rewarding, even more so at the senior level or in management positions. Here’s a close look at the primary duties and responsibilities of a tax preparer, and the type of education needed to prepare for a career in this field:
Primary Responsibilities of the Tax Preparer
The primary responsibilities of the tax preparer are to complete and review tax returns for individuals and small businesses. Tax preparers may work independently to help individuals complete their tax returns each year, or work exclusively for a corporation to handle the company’s tax returns and answer questions about corporate taxes. Almost all tax preparers are certified public accountants (CPAs).
Key responsibilities and duties of the tax preparer include:
– Preparing income taxes for individuals, small businesses and corporations
– Reviewing financial data and documents
– Reviewing prior year tax return forms
– Analyzing income statements
– Reviewing documentation of expenditures applicable to the return
– Interviewing clients to obtain information about deductible expenses
– Computing taxes owed using specialized software programs
– Consulting tax law handbooks
– Detecting errors in tax return documents
Tax preparers may work independently to provide services to individuals and companies as an independent contractor, work for a tax preparation franchise, or work for an accounting firm that offers tax preparation services. Wages and salaries vary significantly depending on the professional’s experience, location and who they are working for.
Training to Become a Tax Preparer
Tax preparers, or public accountants, must have a strong working knowledge of all federal, state and local tax codes, and understand the tax preparation and filing process. Since tax laws are subject to change, many take continuing education courses to ensure they are working with the right data and information. In the event of an IRS audit, the tax preparer is responsible for testifying that they prepared a tax return for an individual or corporation.
Since the tax preparation process involves an extensive amount of research, attention to detail and accurate reporting, the tax preparer must have strong skills in working with figures and formulas, and be familiar with preparing tax returns using computer software programs. Most tax preparers have college training, and hold at least a bachelor’s degree in accounting, finance or business.
Some may choose to enroll in tax practitioner courses for professional development purposes, and take computer classes for certain tax preparation software programs.
Sources:
http://education-portal.com/articles/Tax_Preparer%3A_Educational_Requirements_to_be_a_Tax_Accounting_Professional.html
http://www.mypursuit.com/careers-13-2082.00/Tax_Preparer.html
