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.