What Do Tax Preparers Do?
A tax preparer has to look over their clients earnings and determine their tax credits and liabilities. They have to make sure that they are accurately completing all of the forms, and that their clients taxes are filed in a timely manner. To put it simply, a tax preparer has to prepare income taxes for individuals and businesses while complying with tax regulations.Across the United States it is predicted that this type of occupation will increase by 10%. That could translate to approximately 2,650 annual job openings.
Tax Preparers Skills and Abilities
What does it take to be an efficient tax preparer? You have to have certain skillsets in order to be really successful in this occupation. It is important for a tax preparer to be a good communicator, critical thinker, active listener, complex problem solver and decision maker. You should also be detail oriented and knowledgeable about customer service, mathematics, economics, accounting and tax regulations.
Tax Preparers Duties
Why do you need these skills and abilities? The skills and abilities help you to efficiently and accurately perform your normal duties. As a tax preparer, your normal duties include:
- Talking with clients in order to get information related to their income and other expenses.
- Using computers and calculators to compute taxes owed or overpaid.
- Trying to keep a clients taxes to a minimum by using the appropriate deductions, credits and adjustments.
- Turning to literature on tax preparation in order to figure out how to proceed with strange tax returns.
- Preparing tax returns ranging from simple to complex for businesses and individuals.
- Charging clients tax preparation fees in accordance with the complexity of the tax returns.
- Reviewing the financial records of your clients, such as expenditure documentation and income statements.
- Checking over forms prepared by others in your office or elsewhere in order to ensure accuracy and detect any errors.
Tax Preparers Tools and Technology
How can you ensure that you do all of these duties well? You have to use tools and technology in order to be successful as a tax preparer. You can use computers, calculators, tax forms and accounting software in order to determine the taxes owed or overpaid. You also have to use tax tables, tax preparation software and financial analysis software in order to ensure there are no errors in your preparation. Finally, you should use database entry software and printers in order to keep complete records.
Education and Training for Tax Preparers
Where can you learn how to use these tools and technologies and gain the skills and abilities necessary to be a tax preparer? Most tax preparers learn the technical aspects through on the job training and college courses. Some institutions may hire you with just a high school diploma, but others require that you have a Bachelors degree. If you do attend college, you should take courses such as:
- Accounting Technology
- Business Administration
Tax Preparers Salary
What should you expect to make as a tax preparer? The average tax prepare in the United States makes $36,000. However, your salary will be affected by your education, where you live, what institution you work for and your previous experience. Typically a tax preparer makes between $18,900 and $80,700.
Tax Preparers Jobs by Geography
How does geography affect this career? Like other careers, a tax preparers salary and likelihood of getting a job are affected by geography. Certain areas, like New York, Alaska and Vermont, have higher average salaries than the country. This means that there is a chance that you will make more in these areas over other areas. There are more positions available in areas like Utah, Georgia and Washington because these areas are predicted to have the most growth. When you start thinking about your future career, you have to remember that certain factors like geography and education can affect your success.