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The Tax Consultant Job Overview:
A tax consultant, also known as a tax advisor, is a person who is an expert in the financial field and who is specifically educated in tax laws. Tax laws are a system of rules and regulations that oversee financial transactions and tax consultants are oftentimes necessary for more complex transactions or for those who wish to eliminate any confusion in the tax law and transaction process. Tax laws differ greatly from country to country and state to state, so licensing and training needs to be specialized for every geographical area a tax consultant works in. A tax consultant is available to both businesses and individuals, though usually they choose to be specialized in one genre or the other, offering their services in either a corporate tax law capacity or a personal tax law capacity. Whatever genre they specialize in, a tax consultant must keep up to date in local tax laws and regulations to properly advise and oversee their clients' financial transactions. Thereby helping them to cut through the very technical aspects of local tax laws to make sure that their clients are doing everything they need to, to avoid any legal issues with the government.
Education Needed to be a Tax Consultant:
Most countries and states have no specific educational requirements, but to become accredited with tax consultant and advisor boards such as the Accreditation Council for Accountancy and Taxation (ACAT) a tax consultant needs to have a degree, whether an Associate's or higher, in subjects such as accounting, business finance or tax law. A tax consultant does not need to be accredited with a tax consultant and advisor board, but it adds a layer of security and prestige to both the clients' peace of mind and the tax consultant's. Some countries and states have certification or licensing requirements to be a tax consultant, but the prerequisite for taking these exams generally has no educational requirements.
Other Requirements to be a Tax Consultant:
A tax consultant needs to be able to understand tax law and explain it clearly and concisely to their clients. They also need to be capable with in-depth financial jargon and math as a great deal of tax consultant job duties revolve around these two things. They also need to be socially capable and trustworthy as clients are divulging their private personal and financial information and want to be assured they the information will be kept confidential. They must also keep up to date on changes to tax laws and how these changes affect their clients at all times.
Advancement as a Tax Consultant:
Generally advancement for a tax consultant is limited as many tax consultants are self employed. However, a tax consultant may be employed by a corporation or through a tax consultant firm and can move up through the corporate ladder by taking on a more supervisory or managerial position.
Future Prospect for Jobs as a Tax Consultant:
In the words of Benjamin Franklin "nothing is certain, but death and taxes". Taxes will always be around and the tax laws governing them will always be confusing, so the need of a tax consultant or tax advisor will always be in demand.
Expected Salary as a Tax Consultant:
The salary of a tax consultant can vary greatly in regards to geographical location, education, experience, position held and whether or not they are self employed or not. Generally, a tax consultant starting out their career may earn around $39,000 or £25,000 a year, but if they are accredited with a tax consultant and advisor board they are likely to increase their annual salary to around $45,000 or £30,000 a year. For those who have been in the tax consultant field for significant amount of time it is very possible to earn $160,000 or £100,000 or more a year.
A Day-in-the-Life of a Tax Consultant:
A typical day for a tax consultant varies from day to day, but oftentimes includes:
- Meeting with clients to discuss financial accounts and current tax issues and make sure their financial affairs stay within tax laws
- Preparing tax returns and submitting them
- Preparing other financial documents
- Making complicated financial calculations for clients and their financial affairs
- Researching tax laws and regulations as to how they pertain to their clients