If you are pursuing a career in the field of accounting and you are conflicted about the type of accounting to seek, keep reading to learn whether tax accounting is the right path for you. Tax accounting involves generating tax assets and liabilities of an individual or a business corporation. It is, therefore, the responsibility of a tax accountant to create these tax assets and liabilities. This article gives you a glimpse of what to expect when working as a tax accountant.
Mode of practice
You will be free to decide whether you would like to generate taxes for individuals, corporations or both. For an individual, you will be expected to assist them to file their returns by filling in the tax return forms; you will also help them when they are being audited, as well as give them financial advice regarding taxation. For a business corporation, you will be required to have massive experience. Most corporations have an accounting department in which you will work. Your key role will be to generate the corporation's annual tax obligation based on government regulations. You may perform these roles either as an employee or as a private practice accountant.
The pros of tax accounting
Tax accounting, like other career options, have their strengths and weaknesses. One of the significant advantages is that the career path is clear-cut. After graduation, you have a solid idea of what you will do: crunch numbers and analyse data. This is unlike other careers where expectations keep changing. Moreover, tax accounting is a career that is going to stay relevant for as long as governance exists. Other advantages include; it generates a good income, there is an excellent potential for you starting your own practice, and that your movements are not restricted.
The cons of tax accounting
Tax accounting has a peak season, which is the annual filing season for individuals and corporations. During this time, you will be overwhelmed and stressed since all your clients will suddenly need your services at once. Unless crunching numbers and analysing data is your favourite thing to do, tax accounting may turn out to be agonizingly dull. To grow and earn a handsome income, you will have to keep advancing in your education. Advanced education for an excellent salary and potential for growth in your career does not seem like a bad bargain. These cons do not necessarily mean that tax accounting is a wrong career path, but that you will have to grapple with some of these issues.
Share31 August 2018
I've had an interest in personal finance since my mother took me to open my first bank account when I was six. I realised then that you can decide how to use your money and make it work for you. Over the years, I've read extensively on the subject of personal finance and attended conferences and events focussed on teaching you how to use your money wisely to achieve your financial and lifestyle goals. I started this blog to share what I've learned on my personal journey with money, and I post about a variety of topics, such as the power of compound interest and when getting a credit card can be a smart decision. I hope you find my blog useful.