A tax consultant is a financial professional who offers advice on reducing taxes and helping people with complex tax situations. Some of these professionals have the credentials of a licensed profession, such as certified public accountant (CPA). Others are simply enrolled agents or tax preparers who specialize in specific areas of law. They can work for themselves or in firms that offer their services to individuals and businesses.
A person who works as a tax consultant needs to be proficient in accounting and business law, as well as being able to communicate effectively with clients. This is because a major aspect of this career involves working directly with clients to discuss their financial records and determine the best way to reduce their tax liability.
Often, a tax consultant will be hired by a client who owes money to the Internal Revenue Service or has other complicated tax issues. A tax consultant can help the client file necessary paperwork and make arrangements for repayment of the debt. He or she can also represent the client during an audit.
Qualifications of a Tax Consultant
The qualifications of a tax consultant vary from one individual to another, but in most cases the professional should have a bachelor’s degree or higher in accounting, finance, business administration, business tax, or a related field of study. Some may choose to obtain the certification of a CPA, which is the highest credential in the field. CPAs must maintain their license by taking annual continuing education courses and passing a rigorous exam.
In addition to the educational requirements, a tax consultant should be familiar with all laws and regulations that pertain to filing and paying taxes. These include laws governing tax preparation, deductions, exemptions, and more. These laws are continually changing, so it is important for a tax consultant to keep up with the latest changes.
Other skills that a good tax consultant should have include attention to detail and mathematical ability. As a tax consultant, you will be reviewing a client’s financial documents, so it is important to be able to identify any errors in calculations or missing information. Additionally, you will be able to identify potential savings opportunities for the client by using your knowledge of current tax laws.
Organizational skills are also important for a tax consultant, as you will be managing many files and records for multiple clients. Having organizational skills will allow you to find and access files easily when needed, saving you time and making your job more efficient. Steuerberater