A Tax Accountant And A Tax Preparer

It is time to clear out the misconception that all accountants prepare taxes. Every accountant in his/her working filed is often confused with that of a tax advisor. Oftentimes accountants are called upon to prepare someone’s tax returns but it feels so bad to learn about the ignorance of people on this two different branches.

Job of accountants are totally different than that of tax advisors. An accountant usually has a broad knowledge of the various accounting functions and then deep expertise in specific areas. Accounting can be broken down into three subdivisions: taxation, compliance and managerial.

Taxation:

Tax accounting is a broad field that accountants separate themselves into. This type of accounting can be very complex and can take years of training and experience as there are may different tax implications to constantly consider while working with a client. Tax accountants generally help their clients prepare financial planning in order to best take advantage of tax breaks and discounts. A decision made by the tax accountant in this quarter may have implications on the company’s financial years down the road.

Managerial accounting:

Accountants willing to focus on managerial accounting has to learn budget forecasting,variance analysis and many other accounting metrics necessary for running a business as efficiently as possible. The role of these accountants is to monitor costs for their employer, ideally making their way to Chief Financial Officer of the company.

Compliance:

Students, those who want to pursue a career in compliance generally start with auditing courses. These courses cover the different types of accounting fraud, methods for uncovering foul play, etc. After complementing graduation the accountant will try to find a job at a public accounting firm.

These are the role of a accountant whereas a tax preparer works in a different way. To understand the work of a tax preparer you first have to understand who a tax preparer is.

Tax preparer:

A tax preparer does not need to be a CPA or a bookkeeper. Somebody without a bookkeeping degree or foundation can examine tax code and step through an examination to come out as a certified tax preparer. Usually, it takes more remembrance to stay up with the latest tax assessment rules than basic reasoning.

The tax preparer, for the most part, follows a checklist of principles and necessities while at the same time filling out your personal or business tax returns. There are certain points of interest to having a tax preparer with more experience, however with any complicated tax issues, it would undoubtedly be a wise idea to bring an expense bookkeeper (CPA) into the scenario. 

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Created on Oct 8th 2018 07:23. Viewed 364 times.

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