“Everyone needs to get their taxes done, whether individuals or corporations. So you can only imagine the variety of taxation clients. There are so many types of work available,” says Gabrielle, a Tax Manager in one of the Big 4s. She further says that this is one of the key reasons why more and more accountants are choosing taxation over audit. But this is not the only reason to choose taxation. In her video, Gabrielle talks about other reasons, such as more predictability in the hours, comfort and stability of having a set workspace, quantification of the value provided to the clients, and the consistent demand for tax services.
This proves that tax accountants are in demand, especially because of their expertise and knowledge in the vast field of taxation. The candidates with experience in global taxation are in more demand than the rest. So, what exactly is Tax Accounting?
Simply put, Tax Accounting is a method used to prepare tax returns for individuals, corporations, and other entities. Governed by the Internal Revenue Code, Tax Accountants are responsible for tracking incoming and outgoing funds. They are responsible for being mindful of all the aspects that ensure a seamless tax season.
Why Do Individuals and Corporations Need Tax Accountants?
Tax Accountants in the United States help individuals and organizations prepare their taxes and then submit them to the Internal Revenue Service. And this is a year-on-year requirement. People look for Tax Accountants who can help clients save as much money as possible. They also act as Financial Advisors, especially when dealing with a large sum of money. The US Federal tax system is comprehensive, and hence, Tax Accountants also need to be aware of the application of the basic principles to tax returns and should be able to craft helpful strategies.
Different Types of Tax Accountants
Tax Accounting is a niche field. And that is why, when looking to hire professionals, you need to know what exactly you are looking for. The main difference between Tax Accountants and the other accountants is set by the industry they work in or the clients they serve. Some common areas of their work include:
- CPA Tax Accountants – They are the CPAs who also offer tax accounting services
- Management Tax Accountants – They are responsible for taking care of the financial and tax matters for large businesses.
- Personal Tax Accountants – As the name suggests, they are responsible for managing individual taxes.
- Government Tax Accountants – They work with federal, state, and local government agencies.
- Small Business Tax Accountants – They usually focus on businesses of smaller and privately owned businesses.
Hiring the right tax accountant goes beyond the credentials. It begins with a clear, well-crafted job description. This document not only outlines expectations but also attracts the right kind of expertise. Let us delve deep into what a Tax Accounting job description looks like:
- Job Title
Be clear and direct. The candidates looking at the job description should be aware of what kind of Tax Accountant they are becoming and what the role entails.
- Role Summary
The role summary is the job in a nutshell. This is important because this gives candidates an overview of what their role will help the organization achieve. It gives them a sense of purpose.
- Key Responsibilities
List the core duties that the Tax Accountant will be responsible for. Instead of giving a generalized list of responsibilities, make sure to customize it based on the actual role, designation, and seniority level.
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Required Skills & Qualifications
The role you are hiring for is not just about the basic qualifications. It goes beyond that. So, besides including the experience, technical skills, and qualifications, don’t forget to add the soft skills, strategic experience, or know-how that you might need for the role.
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KPIs or Success Metrics
Tax Accounting is a critical field, and hence, candidates need to be measured accurately for their performance. Set out clear, measurable expectations so that they have a result-driven approach. KPIs are not just about understanding performance, it is about managing the expectations of both parties more effectively.
- Company Overview:
Attract talent who are aligned with your mission. It is easy to teach skills, but what is more important is that you hire people who are culturally fit for the organization.
- Compensation & Benefits:
Transparency matters, especially when you are hiring for niche roles. Be it the salary range, the work options available, leave policy, or any other specific perks, they can help attract better candidates.
Tips to Hire the Right Tax Accountants for Hiring Managers & Business Owners
A strong job description is a good place to start when looking for the right candidates. But successful hiring involves people who understand the role in depth and are willing to walk the extra mile.
- Define whether you need strategic or execution support:
If you need tax strategy and planning, hire someone with advisory experience or a CPA license. If you need help with advisory experience, compliance, and filings, look for someone who understand it all and you do not end up all your time on training.
- Make your choice based on in-house or offshore talent:
Tax seasons can be overwhelming and sometimes you need the additional support. Make sure to combine your in-house teams and offshore ones based on what your requirement is. Pre-planning it all helps manage seasonal workloads, data entry and prep work.
- Assess their tech readiness:
Make tax season or accounting easy, needs your teams to be fluent in digital tools. When hiring a candidate, make sure you are on the same page in terms of the tools and platforms you are using.
- Hire candidates who have an urge for learning:
Tax codes are constantly changing and the modern accountant needs to keep up. When hiring for a role like this, it is important to seek candidates who do not just hide behind a pile of everyday tasks. They are learning, growing, and evolving.
Need help getting started with hiring? Download our Tax Accountant Job Description template here.
What Happens After You Find the Right Job Description?
Finding the right talent even with the right job description can sometimes be gruesome. Our remote, pre-vetted talent from India who are trained, English-speaking, and aligned with international standards are here to help.
Partnering with Finsmart makes sure that your accounting processes are seamless from Day 1. To get started, we follow the following onboarding steps:
- Gather all details of the accounting firm – client name, address, partners, employees, point of contact, scope of work and other basic details.
- Together we set up the tech – Accounting Software, Internal Communications platform, time tracking, Document Management, task Management, Invoice Processing, Month Closing, Password Protection, and data security
- Deep dive into the accounting processes to understand what both parties expect
- Set the accounting offshoring workflow with our 14-step guide
Ready to get started? Book a discovery call:
Book a free discovery call to explore your options.
Maanoj is Co-founder & Director of Growth Strategy & Alliance at Finsmart Accounting. He is an Outsourcing Expert, a People Champion, and a Dynamic Leader with strong Business Strategy and Scaling-up experience. He has incubated businesses, sold & exited ventures; helped build strong enterprises in very diversified verticals like Fintech, HR & Consulting spaces in various CXO capacities over the last 20 years.
