Most accountants will specialize in a particular field within finance over time, and find a niche to develop additional skills and gain qualifications. One route to consider is to achieve a tax preparation certification, which allows an accountant to represent people and companies on tax matters.
Benefits of Becoming a Tax Preparer
There are many benefits of becoming a tax preparer as a specialization, rather than a more general accountant. These include an increased salary, better job security, and greater flexibility than other financial specialists. Getting a tax preparation certificate can also open doors to further career progression, offering additional benefits, making this a very wise investment in time.
Job security
As a certified tax preparer, you can take on a vast number of clients, from individual people who need help with their income taxes to companies that need to submit complex corporation tax. Tax preparers will rarely struggle to find clients as almost everyone needs to file taxes of some sort, and the process can be confusing, making the option to hire a specialist attractive. Also, tax laws change almost yearly, and many people don’t have the time or ability to keep up with them. Consulting with a professional is a standard solution to this problem.
Salary
The tax preparation career path is lucrative, with high salaries that increase as you gain experience and additional qualifications. Even people who aren’t certified can charge high hourly rates if they have enough experience and training. Areas with a high average income like large cities will provide the highest potential to earn a good salary as a tax preparer.
Flexible
The majority of tax preparers’ services are required in April, and the month leading up to it, as this is when the deadline for submitting taxes is in the U.S. Workaround will be busy this time. Still, for the rest of the year, tax preparers will often focus on other accounting areas, while offering services to people and businesses that need ongoing tax advice.
Increases your client base
Adding a tax preparation certificate to your skills as an accountant allows you to tap into an additional market of people, and expand your client base. Doing so helps to diversify the type of clients you serve and increase job security. Also, as almost half of all Americans fill out a tax return, a good tax preparer will benefit from word of mouth as many people will recommend you to friends and colleagues.
For more information, check out this article on How to Become a Certified Tax Preparer? | Taxfyle
What are a tax preparer’s responsibilities?
Tax preparers are responsible for filling out and submitting tax returns for clients. The process will include reviewing financial information, speaking to clients, and representing their clients in front of the IRS if needed. Tax preparers are split into uncertified and certified, with the latter having some key benefits. Certified tax preparers can represent clients to the IRS with no limits and must pass a test every three years to remain certified, meaning that their knowledge is up to date compared to non-certified tax preparers.