More Information About Tax Accounting

What should I know when considering a degree in Tax Accounting ?

Tax accounting is an involved and stimulating choice in which to pursue a degree. Tax accountants have mastered tax law, and thus are uniquely qualified to help businesses, individuals, and even branches of the government with their taxes and dealings with the IRS. Consequently, as long as there are taxes there will be tax accountants, affording a high number of career opportunities as well as excellent job security and longevity.

This is, however, a career path that requires an extensive amount of education, with most positions requiring a bachelor's degree at minimum. An extra year of study will also help to qualify for the Certified Public Accountant (CPA) licensure exam. Thankfully, there are a number of excellent accounting schools readily available, many that also offer online accounting degrees.

Earning Potential for Tax Accountants

A career in tax accounting is especially promising in terms of compensation, with entry-level positions earning between $30,000 and $40,000 per year, while the starting salary for those with a master's degree in accounting averages roughly $50,000 per year. With experience, further education, and career advancement the earning potential of tax accountants can be well in advance of $90,000 per year.

Where a Degree Will Take You

Tax accounting degrees pave the way for many diverse and exciting career opportunities in a variety of fields. However, these are careers which require the appropriate amount of education and experience. For most positions, a bachelor's degree is the minimum requirement, with many businesses requiring a master's degree in accounting or an MBA with an emphasis in accounting. Furthermore, acquiring a Certified Public Accountant (CPA) licensure is not only important, but also allows for a wellspring of new career opportunities. Finally, because of the basic nature of accounting work, a strong background in and knowledge of mathematics is vital for success.

Career Paths for Tax Accountants

Though the requisites for this career may be daunting at first, the rewards are well worth the work. A degree in tax accounting will offer opportunities in a wide variety of fields and businesses.

Private Sector (Businesses and Individuals)

Tax accountants who work in the private sector offer advice to companies and individuals on the tax advantages and disadvantages of their business decisions.

Tax accountants working with corporations and businesses typically handle accounts for a company through complex tax preparation, research, and planning. They are primarily in charge of the preparation and review of federal and state income tax returns, and the compilation of taxable income projections. This type of work traditionally involves a team or teams of accountants working together, with experienced accountants heading the operations.

On the other hand, tax accountants working with individuals tend to focus primarily on managing tax returns. For this reason, the March and April tax season is an incredibly busy time in the field of tax accounting.

Additionally, tax accounting is one of the best career paths for making a successful business through self-employment. Many successful tax accountants also go on to teach their skills at colleges and universities around the country, ensuring their extensive knowledge is passed on.

Public Sector (Government)

Careers in the public sector with federal and state governments, including work as a forensic accountant investigating tax fraud, are also commonplace. Many positions for tax accountants are readily available through nearly every branch of the government, and especially through the IRS. More than any other, those who seek government employment must be completely familiar with state and federal tax laws.

Certified Public Accountant (CPA)

CPAs, or Certified Public Accountants, have passed the Unified CPA Examination, and have also complied with further state regulations and requirements for certification as a CPA. This certification opens many doors in the world of tax accounting, as many states and businesses require their employees to be CPAs. A CPA is exceptionally qualified to handle disclosures, and to ensure the principles of accounting are adhered to in financial statements, which is vitally important in order to ensure taxes are planned for and filed coherently, accurately, and promptly. A CPA licensure is required by most businesses in order for advancement into financial managerial positions, and for Chief Financial Officers. CPAs are the most trusted tax accountants.

Article References

U.S. Bureau of Labor Statistics
http://www.bls.gov/

CPA Finder.com
http://www.cpafinder.com/accounting/tax-accountant-tax-accounting.html

The American Institute of Certified Public Accountants
http://www.aicpa.org

What are the leading schools offering programs in Tax Accounting ?

• Northeastern University Established in 1922, Northeastern University offers Master of Science and MBA degree programs with 7 specializations that have launched and accelerated successful business careers for our graduates ever since. Northeastern University's College of Business Administration is AACSB-accredited, the highest accreditation for any business school. ( More Info )