Published in:Tax Advisor
AuthorJake Latimer
Published on:June 27, 2023
Confused about how to stabilize the financial integrity of your company and deal with core tax and financial advisors? You’re at the right place to learn all about what is a tax advisor – a person having advanced knowledge about accounting and laws relevant to the taxation standards of your country.
The basic role played by tax consultants is to create a friendly alignment between the financial circ*mstances of your firm with the federal taxation codes of the state you’re an inhabitant of. If full payment of taxes is made on time, it will save you to run after searching to avail of tax liens services.
Understanding the Role of Tax Experts
If you’re running a business single-handedly or have made partnerships, benefitting yourself from the assistance of tax consultants is essential to pay the taxation authorities on time while simultaneously minimizing the load of taxes which feels like a burden to everyone. Depending on the situation you’re tackling, the guidance and support provided by the taxation advisors will differ greatly.
For example, advice given to a person planning to inaugurate a shop will be entirely different than that provided to a person planning to retire. Similarly, the recommended plan for real estate and commodity traders will be distinctive from each other. Tax experts are well-versed in the legislation made by the Internal Revenue Service (IRS). To resolve the issues, many businesses tend to retain their services to represent themselves before taxation authorities.
Is Tax Consultant a Good Career?
Being a tax advisor or consultant is one of the prestigious career choices to enter because every day you’re working with large corporations which remarkably increases the choices of your professional growth. Starting working from an entry-level post to excelling towards higher executive positions, you can start your firm to provide tax services to clients on a contract basis. Thus, the fear of depending on a single job for the rest of your life is diminished. In addition, you can start one-to-one coaching sessions as a side hustler or a full-time mentor offering preparatory courses required to become a tax preparer or tax advisor.
Tax advisors are not only for business owners or elites of your society. An average person who has experienced major events such as the death of a spouse, marriage, filing for a divorce, birth or adoption of a child, or investing in a new home or car can also hire a tax advisor which would prove to be a smart choice to relieve yourself from the extra financial burdens.
Step By Step Guide: What is a Tax Advisor?
You’ll never grasp the theory behind what is a tax advisor unless you go through this comprehensive guide that explains the steps you need to take to become a high-profile tax consultant.
1. Qualification
To become an eminent tax advisor, it is necessary to get the relevant qualification. A high school diploma or a professional bachelor’s degree is the minimum requirement to step into the practicality of taxation. Business administration, financial management, accounting, law or income tax are a few examples of the subjects that allow you to obtain basic knowledge as well as a particular set of skills necessary to enter the perplexed world of taxes.
2. Work Experience
To be frank, you don’t need to wait for the day of convocation to start thinking about gaining some work experience. If you’re passionate to work in your field, you can start doing it by attending various webinars or workshops. Participating in community work is the best way to start learning about the work culture of taxation. In addition, knowledge and practice from training sessions can also be assimilated which will surely help you in exams as well.
3. Credentials
It is good to gain experience prior to ingressing the actual work environment but if you’re lacking some basic yet important credentials in your resume, the chances of career growth may sooner or later stick at some point. Here’s at a glance what you need to know about the common credentials and certifications:
4. Enrolled Agent
The IRS issues the certification of enrolled agent (EA) that allows you to represent the taxpayers before the IRS.
5. Certified Public Accountant
It is necessary to have a bachelor’s degree in relevant subjects to be a certified public accountant (CPA) as you’ll get additional training which provides you with extra credibility.
6. PTIN
PTIN stands for Preparer Tax Identification Number. this code serves as a specific code assigned if you plan to prepare taxes for your clients. It is a compulsion imposed by the IRS to obtain a PTIN before the preparation of any federal tax returns for the clients.
7. Accredited Tax Advisor
Being an Accredited Tax Advisor (ATA), you get to plan taxes for complicated scenarios such as retirement planning, high net worth individuals, and estate taxation. It is mandatory to have a working experience of at least five years to take the exam for ATA.
Conclusion
A tax advisor vs tax consultant includes professionals from other related fields such as a certified public accountant (CPA), tax attorneys, enrolled agents, and financial advisors. No matter how small or large your business is, it is essential to understand what is a tax advisor because there are many professionals who, despite being business tycoons, do not have enough information about the complexity of taxation which is why it becomes a necessity to hire tax consultants or advisors to safe your firm from the financial crisis and tax liabilities.
