What Is a Tax Advisor? Everything You Need to Know

A tax advisor is an expert in tax law and can help business owners deal with many issues. While they can’t perform executive-level functions or help with marketing decisions, they can advise business owners on how to stay compliant and maximize their savings. If you’re curious about what a tax advisor does, read on to find out more about their duties and education requirements.

Job Duties

As a tax advisor, you’ll be required to keep up with constantly changing tax laws. As a result, you’ll need to learn a lot and be expected to work under pressure, especially during specific periods of the year. Depending on your expertise level, you can earn up to PS150,000 per year.

Besides having a university degree, you need to have experience. If you’re starting a career as a tax advisor, it will help to have a few years of work experience in a related field. You could have worked as an accountant, auditor, or financial professional. Alternatively, you could work as an intern for a company and gain experience.

A tax advisor is a professional who deals with taxation for individuals and businesses. Their primary responsibilities include advising clients on tax legislation and ensuring they pay their taxes efficiently. These individuals also consult their clients on estate planning, business structure, and other aspects of accounting.

Education requirements

Although the education requirements for a tax advisor are not set in stone; it is recommended to have at least an associate’s or bachelor’s degree in accounting, business, or finance. In some cases, a graduate degree is preferred. However, those without a degree can also work as tax advisors if they have work experience in related fields. Experience can include working as an auditor, accountant, or financial consultant. Internships are also helpful for gaining the necessary experience.

Certification as an enrolled agent can also help you land your first job. The credentials are also helpful for future job opportunities, which may require more responsibilities. A CPA license is highly advantageous, and many tax advisors have accounting backgrounds. Although CPA renewal requirements vary from jurisdiction to jurisdiction, most require CPA candidates to take continuing education courses every two years. In addition, you can pursue an ATA (Accredited Tax Advisor) credential to demonstrate your advanced knowledge and capabilities. Having this credential could also help you attract more clients.

To become a tax advisor, you’ll need high numeracy skills, including the ability to analyze and interpret complex data quickly. You’ll also need good communication skills, as tax advisors often have to consult with a wide range of people. Some advisors may even need to help their clients resolve tax problems with the IRS.

Salary

Tax advisors earn a range of salaries. Some of the lowest paid make around $48,000 annually, while the highest earn up to $121,000 yearly. Tax consultants can work for themselves or as part of large teams within accounting firms. The salary of a tax advisor depends on their specialization and years of experience.

Salary is also dependent on location. Tax advisors in high-income states are likelier to earn than those in lower-income states. The location of a tax advisor will have a significant impact on the salaries they earn. Tax advisors can work for large corporations, small consulting firms, or a regional office community.

Salaries can vary widely depending on experience. A graduate trainee with less than three years of experience can earn around PS20,000-32,000. A chartered tax advisor can earn between PS36,000-PS55,000 per year. Senior tax advisors and directors can earn more than PS130,000 per year.

Credentials

If you’re considering a career in tax consulting, consider pursuing a taxation degree. Although this degree is not necessary for entry into the field, most employers prefer tax professionals with a degree. However, you can get started as a tax advisor without a degree by gaining work experience in another field. It can include being an accountant, auditor, financial professional, or intern. All of these positions can help you gain experience and credibility in taxation.

Many tax advisors have backgrounds in accounting. A CPA license is an asset to a consultant, and some states require that CPAs renew their licenses every two years and take continuing professional education courses. The Accreditation Council offers another voluntary tax adviser certification program for Accountancy and Taxation (AICPA). Obtaining this credential can demonstrate advanced tax knowledge and make you more attractive to employers.

While there’s no specific level of experience for becoming a tax advisor, it’s essential to know tax laws and regulations to perform the job well. A tax consultant may have a master’s degree in accounting or law, but they don’t have to be a CPA. To become a CPA, you should have at least three years of experience in tax-focused work. You should also have strong technical skills and knowledge of accounting. As your career progresses, you can take auditing, taxation, or corporate consulting courses.