What Do Tax Accountants Do

Tax accountants are individuals who utilize their expertise, experience, including their knowledge of tax legislation and control to proffer help to their customers or clients in paying taxes in the best and efficient way possible, while adhering to the rules and procedure of the government.

Tax accountants also make recommendations to companies and clients on how to reduce the impact that tax payment has on their company. Before we move further, why don’t we take a brief look at what tax accounting is?

 

What is tax accounting?

Tax accounting is an accounting strategy that has its focus on taxes instead of the presenting of public financial statements. This type of accounting is usually controlled by the IRC (Internal Revenue Code), which outlines the specific rule that individuals and organizations must adhere to in the preparation of their tax returns.

 

duties of auditors

 

Important points

  • Tax accounting is a type of accounting that focuses on the preparation of tax returns including tax payments
  • This type of accounting is utilized by people, businesses, corporations and other organizations
  • In the case of an individual, tax accounting focuses on the income of such individual, qualifying deduction, donations, including any investment profits or losses.
  • In the case of a business, tax accounting is more complicated, with greater evaluation regarding how funds are spent and what is taxable, including what isn’t.

Certainly, accountants provide an extensive array of services such as the preparation of transfer pricing document, payroll and HR services, auditing, etc., but when it boils down to tax accounting, a tax accountant is a right expert to call. An accounting firm is home to tax accountants who can assist you in preparing your tax returns and save you the stress of trying to prepare it yourself.

There exist two categories of tax accountants, corporate tax accountants, and personal tax accountants. Corporate tax accountants work for organizations either as part of an accounting firm or as a member of the accounting department, to make sure that the company pays the right amount of money due for taxes based on the law and regulations. On the other hand, personal tax accountants work for individuals, normally with an accounting firm, offering recommendations and help with the payment of tax.

Most tax accountants out there work for a specific accounting firm, as a staff of the company, or they can work for the national government. Accounting firms don’t usually work with large businesses, rather, they work with small and medium scale businesses and individuals who are in search of help in the preparation of their tax returns or any help regarding their taxes.

Some tax accountants do not like the idea of working for a company; instead, they prefer being self-employed and work alone from any firm or organization, providing their services to individuals in need of their help.

 

duties of auditors

Primary responsibilities of a tax accountant

The following is a comprehensive list of the popular tasks tax accountants are needed to complete.

 

1. Obtain any important tax data on clients or companies

  • Evaluating financial books including balances
  • Reviewing financial records, systems, budgets
  • Carrying out audits including face-to-face meetings with clients to obtain extra information

financial audit

 

2. Examine obtained information to look for any possible tax exemptions

  • Evaluating tax liabilities
  • Creating effective measures to reduce the liabilities

General audit

 

3. To set up meetings with clients and supervisors

  • Explaining tax laws and regulations in a way that is easily understood by the clients and supervisors
  • Offering effective ways to lessen payments

tax accountants

 

4. Creating effective measures to lessen tax payments

  • Searching for deductibles
  • Understanding all that tax laws and clauses entails finding deductions

accountant going through charts

 

5. Tendering tax reports in time

  • Finishing and presenting tax return forms before the D-day
  • Going through past tax returns and reports to see if they contain any errors and making corrections where necessary

why you need an accountant to file taxes

 

6. Representing clients or employers during meetings with tax authorities

  • Negotiating tax payment problems with the tax authorities
  • Analyzing discrepancies (for instance, income and expenses figures not balanced as they ought to)
  • Searching for the best solutions for problems and discrepancies

representing clients in meeting

In a Nutshell

The preparation of tax returns is a complicated task, especially if this is to be prepared for a company and not an individual. A tax accountant has the necessary expertise, experience, and knowledge to help you with not just the preparation of your tax returns, but with any issues regarding your taxes.

To ensure that you adhere to the rule and regulations of the IRC, ensure you outsource the preparation of your tax returns to a competent and skilled tax accountant. For more information, get in touch with us.