Tax as a Career
Description of the Job
Tax professionals prepare tax returns for companies, partnerships, and individuals, and ensure their clients comply with state and federal tax regulations. They research, study and interpret tax law. Their work includes preparing payments, identifying tax savings, and analyzing tax issues.
Fast Facts
- Number of hours per weekGenerally 40-45 but 50-60+ during busy season
- Average starting pay$65k nationally, $73k in the Bay Area
- Amount of travel requiredLittle to no travel (<20% generally)
Roles & Responsibilities
- Prepare tax returns, payments, necessary paperwork, and reports,
- Assess and research difficult tax issues to identify solutions.
- Manage and maintain the company’s tax database.
- Determine tax savings and recommend strategies to improve profits.
- Prepare accurate quarterly and annual tax reports.
- Ensure compliance with all state, federal, and local tax laws by accurately determining the amount due and preparing and filing annual tax returns
- Keep tax liability at a minimum by leveraging deductions, exemptions, and high-level knowledge of tax laws
- Maintain comprehensive tax records and financial data for institutional use and audits
- Meet strict deadlines to avoid late fees and penalties
Skills Needed
- Good understanding of the financial statements,
- Organization/Excellent Attention to Detail
- Time Management
- Spreadsheet Proficiency
- Being able to clearly communicate findings in a way that a non-accountant can understand
- In-depth knowledge of state and federal tax codes, laws, and regulations
Steps to Enter The Field
- An undergraduate degree is almost always required. The best degree is an accounting degree, as many firms only look at accounting majors. While it may be possible to have another business-related degree, you won’t have the necessary coursework for the CPA exam
- A CPA is a great license to obtain for working in tax. There are 4 total examinations you must pass for the license, and you must complete various coursework. Full requirements can be found here. Many accounting programs at colleges will provide all or most of the courses needed, but it may depend.
- The CPA is a rigorous exam that requires a lot of studying, and most professionals work full-time while studying. However, it is possible to finish all 4 exams before starting full-time if you have a gap after graduation
- Internships are a great way to get into the tax practice. All the large firms (and many smaller firms) have internship programs after the Junior year of college, with intentions of converting to full-time roles if you perform well.
- Recruiting timelines for Audit can be very early. For example, at Santa Clara University, the first set of applications for Junior-year internships is around February of sophomore year (there are more application rounds later though)
Landscape of the Field & Companies in the Field
- There are 3 main levels of accounting firms for tax:
- Big 4: The 4 biggest accounting firms in the world. It includes Deloitte, PwC, EY, and KPMG. The workload is generally the highest at these firms, but most people in business will recognize these firms. The Big 4 mostly provides their services to large clients; 100% of the Fortune 500 companies were audited by one of the Big 4.
- Other national accounting firms: these include large, national firms that are not the Big 4. The work is largely the same between all firms, but the Big 4 are much larger and have more name recognition. For example, the Big 4 range from annual revenue of $29 - 48 billion, while Grant Thornton (5th most revenue) only has annual revenue of $6 billion. These include Grant Thornton, BDO, RSM, Baker Tilly, Crowe, Moss Adams, and more.
- Regional / local firms: these are much smaller firms that generally have 1 or a few offices in a specific region. Generally regional firms generally focus more on private clients (companies that aren’t on the stock exchange), so there is less regulation. This may allow one to utilize a larger depth of her accounting knowledge because of the wider focus of the work.
External Resources to Learn More & Develop Skills
- Best CPA Prep Courses: Investopedia provides the best 5 CPA Prep courses (best overall, best artificial intelligence tools, best value, best price)
- Useful websites for the tax profession: Contains a plethora of websites valuable for tax professionals, including practice resources & tips, tax professional associations, licensing agencies, and much more
- California Society of Tax Consultants: a non-profit association whose goal is to educate and keep its members up to date so they can excel as tax professionals
Related Careers
- Audit, Financial Advisors, Risk Advisory, Financial Analysts, Cost Analysts, Budget Analysts
Informational Interviews
Lauren Ching
Company Name: PwC
Title: Tax Manager
Years of Experience: 8
Biography
Lauren Ching is a Tax Manager at PwC. She graduated from Santa Clara University in 2012 with a degree in Accounting. She started at PwC after graduation as an Associate, then got promoted to a Senior Associate, and now is a Tax Manager.
Overview
Steps took to enter field
Challenges & Favorite Parts
Advice
Chris Tennant
Company Name: Amazon
Title: Tax Data Analyst
Years of Experience: 1
Biography
Chris Tennant is a Tax Data Analyst at Amazon. Chris graduated from Santa Clara University with a degree in Economics and a minor in Entrepreneurship. Chris held various internships in Wealth Management and Private Equity before joining Amazon after graduation.
Overview
Steps took to enter field
Challenges & Favorite Parts
Advice
David Kelm
Company Name: Crowe
Title: Financial Institutions Tax Services Senior Staff
Years of Experience: 5
Biography
David Kelm is a Financial Institutions Tax Services Senior Staff at Crowe. He graduated from University of California Davis in 2016 with a degree in Managerial Economics, then received his Certificate of Advanced Accounting Proficiency at Santa Clara University in 2016. He was a Tax intern in 2015 at Crowe and started full time there in 2017.