Tax Analyst Job Description, Skills, and Salary
Are you searching for a tax analyst job description? Get to know about the duties, responsibilities, qualifications, and skills requirements of a tax analyst. Feel free to use our tax analyst job description template to produce your own tax analyst job description. We also provide you with information about the salary you can earn as a tax analyst.
Who is a Tax Analyst?
A tax analyst is a financial expert who assists high-net-worth individuals and businesses with their tax returns. They help clients with tax return preparation and filing to make sure they adhere to all pertinent local, state, and federal tax regulations and obligations. This could entail studying tax regulations, going over customer accounts, and giving them tax and financial advice.
Tax forms and returns must be prepared, reviewed, and filed by tax analysts. They are used by both private citizens and commercial entities to create forms and inform them of strategies to lower their tax obligations and payments. They are in charge of filing a finished return by the federal or state tax filing deadlines after preparing returns and reviewing documentation, checking for accuracy and completion. Every three months, they prepare and file the necessary paperwork with the IRS if they are working with clients who need quarterly tax payments.
Tax analysts are professionals at determining how much a customer can reduce their tax obligations by way of tax credits, costs, or deductions. They are knowledgeable about recent changes to the tax code and current tax law developments. They compute taxes owing as well as savings from spending and deductions that could have an impact on a final tax estimate. They accurately capture and transcribe intricate client financial information onto tax forms using their math skills. A bachelor’s degree in accounting, finance, or a closely related field of study is required for tax analysts.
Tax laws, regulations, and policies must be analyzed and understood by tax analysts. They frequently collaborate with a group of other tax experts to make sure that their business complies with all applicable rules and laws.
Additionally, tax analysts may be asked to advise or direct organization members who have questions or concerns about particular tax-related matters. This could involve assisting staff members in comprehending the tax implications of specific elements of their compensation package, detailing the impact of changes to tax law, etc.
A financial professional who specializes in handling a company’s tax problems is known as a tax analyst. An analyst’s evaluation of a company’s tax procedures and verification that the business is abiding by the law is one of their most crucial tasks. The analyst’s duties also include filing national, state, and local taxes on behalf of the business. A significant duty of a tax analyst is to investigate and maintain current knowledge of all applicable tax regulations because tax rules change regularly. Additional tasks include looking at present tax procedures and finding areas where money can be saved.
The main responsibility of a tax analyst is to make sure that a firm is correctly adhering to all tax rules. It takes time to examine a company’s records to determine how much tax is payable and why. To assess if tax rules are being correctly observed, the analyst needs a solid understanding of a company’s tax processes, which this examination provides. If anomalies are discovered, the analyst advises management and offers suggestions on how to more effectively ensure legal compliance. When these changes are accepted, an analyst must quickly implement the new procedures.
Tax Analyst Job Description
What is a tax analyst job description? A tax analyst job description is simply a list of duties and responsibilities of a tax analyst in an organization. Below are the tax analyst job description examples you can use to develop your resume or write a tax analyst job description for your employee. Employers can also use it to sieve out job seekers when choosing candidates for interviews.
- Help in answering tax-related questions from various countries.
- Aid with mergers and acquisitions, tax due diligence, strategy, and integration projects.
- Determine and report to the client’s payroll departments your relocation costs in different currencies.
- Carry out nexus reviews and assistance provided with submitting state tax registrations.
- Improve the processes in your area of responsibility to increase efficiency.
- Conduct tax research and assist in the analysis of complex tax problems.
- Support audit and compliance efforts both internally and externally, including data analysis.
- Serve as the key contact on assigned engagements and executive presence.
- Manage new setups for vendors and customers, along with the associated tax paperwork.
- Prepare a book on tax management for distribution to leaders in finance and tax.
- Help the manager implement a new customer, record the client’s gross-up needs, procedures, and reporting schedule, and help test the tax gross-up data exchange files.
- Consult with accounting, finance, and line-of-business staff regularly to get information about the aforementioned.
- Provide effective and efficient execution of tax services, an advanced understanding of the suitable application of tax standards is required.
- Discover and comprehend the process and technical problem spots that can help offer solutions.
- Create and update operating procedures, process flow charts, user guides, and development plans.
- Communicate with a variety of internal and external stakeholders to guarantee consistency upstream and downstream.
- Account for data collection and improved efficiency.
- Calculate payroll taxes such as federal and state unemployment insurance taxes, FICA contributions, and federal and state income tax withholdings.
- Conduct audits of people or companies to check for adherence to tax rules and regulations.
- Prepare tax returns using computer software like TurboTax or TaxCut for individuals or small companies.
- Examine financial records to check for accuracy and completeness.
- Study changes to tax legislation and provides colleagues with advice on how new rules affect their work.
- Prepare tax returns using computer software like TurboTax or TaxCut for individuals or small companies.
- Spot potential tax problems for people or organizations and offer suggestions for how to fix them.
- Identify tax law violations and advise appropriate action.
- Examine requests for tax exemption made by charities and other nonprofit groups.
- Help with tax and financial audits.
- Determine the amount of taxes due, file a tax return, and process it.
- Cooperate with tax personnel and outside auditors.
- Develop and put into action plans for the company to pay taxes.
- Create, put into effect, and monitor internal tax compliance policies.
- Make sure their clients adhere to all tax laws and standards.
- completion, inspection, and submission of tax documents.
- Observe internal processes for inventory management and auditing.
- Assist their clients in obtaining the best tax advantages possible.
- Locate chances to reduce taxes.
- Keep abreast of state, local, and federal tax rules and regulations
- Get financial reporting ready.
- Prepare tax forms for their customers.
- Suggest methods to lower risks and boost compliance.
- Analyze and report business tax data.
- Update managers and other analysts on inventory changes.
- Collaborate with various authorities to address issues.
Qualifications
- A bachelor’s or graduate-level degree in business, finance, computer science, or a related field, or comparable work experience
- Knowledge of Java, SOX, and C software and systems
- Leadership and time management abilities were evident.
- Comfortable problem-solving and troubleshooting.
- Knowledge of object-oriented programming and general ledgers.
- Dependable detail-orientation and an aptitude for critical thought.
- Proficient with spreadsheets and GAAP guidelines.
Essential Skills
- Organization: The capacity to keep track of documents and files so you can locate them when needed is organization. Since tax analysts frequently deal with enormous volumes of data, they must be well-organized to make sure that everything is preserved in its right location. This guarantees that tax analysts may rapidly and properly access the information they require. Ensuring that all relevant documents are available for examination, also lowers the chance of making mistakes.
- Analyzing finances: Tax analysts study the financial records of organizations and people using their expertise in financial research. To make sure that taxpayers are paying the appropriate amount of taxes, they examine these documents. To find out if a taxpayer is hiding any income or assets, tax analysts also use their expertise in financial research. The discovery of tax evasion evidence with the aid of this information may result in criminal prosecution.
- Innovative Options CS UltraTax:Tax analysts come up with innovative approaches to solve problems by using their creative problem-solving abilities. They frequently deal with complicated data and have to come up with creative ways to understand it, which calls on them to think outside the box. Tax analysts may need to develop novel methods of computing taxes or uncovering deductions that they can use, for instance, if a client has an unusual financial condition.
- QuickBooks: QuickBooks is used by tax analysts to monitor and handle financial data for businesses. Since accountants utilize this program, a tax analyst will likely have expertise with it. It can assist you in comprehending the financial records of both businesses and people, which enables you to make wise tax judgments.
- Skills in Problem Solving: Tax analysts must have the ability to solve problems, examine data and offer recommendations. When they discover systemic flaws or see that a business isn’t strictly adhering to regulations, they apply these skills. When tax analysts have to communicate intricate financial data to clients, they also employ problem-solving techniques.
- Flexibility: The ability to alter course as necessary. Tax analysts must be able to adapt their work because tax laws and regulations can change regularly. They can stay current on new advances in the sector because of this ability.
For instance, flexibility enables a tax analyst to quickly become knowledgeable about it and carry out the required study if a client wants an examination of new legislation or rule.
- Accounting: The ability to record and analyze financial data is accounting. When examining corporate documents, such as sales ledgers or bank statements, tax analysts use their accounting knowledge to ascertain how much tax a corporation owes. To generate reports on their results for clients and other stakeholders, they also use accounting skills.
- Analysis Capabilities: Tax analysts examine and understand tax laws, financial accounts, and other documents using their analytical talents. To make sure they have all the information required for a specific project, they also examine data from multiple sources. They must be able to find crucial information in intricate documents and records to accomplish this. Additionally, tax analysts need to be able to assess several choices and decide on the best course of action for each situation.
- Management of time: The capacity to schedule and carry out work in a way that guarantees you meet deadlines is known as time management. It’s crucial to effectively manage your time as a tax analyst so you can do all necessary duties before filing deadlines. This ability also aids in ensuring that you have adequate time to thoroughly investigate subjects or respond to client inquiries.
- Observation of Details: Tax analysts who pay close attention to detail can make sure they have all the data necessary for precise calculations. To do this, financial records must be carefully reviewed, and any data placed into software programs must be accurate. Following corporate policies, which guarantee employees are receiving the proper perks, and notifying managers of any changes to an employee’s status are further examples of paying attention to detail.
- Tax Planning: To guarantee that the business is complying with all tax regulations, tax analysts frequently collaborate with several departments. They must have a comprehensive understanding of the tax calculation process to assess data and recommend modifications to corporate structure. Tax planning is assessing present procedures to see if they are effective or if there is room for improvement.
How to Become a Tax Analyst
- Finishing your education: Take up a bachelor’s degree program. Pick a similar field or ones like accounting, finance, or taxation. Try to finish courses on subjects like:
- Accounting
- corporate law
- financial administration
- Analysis of financial statements
- Taxes
- Obtain appropriate opportunity: Investigate possibilities to acquire relevant experience to advance your understanding of taxes and the financial sector. Start by finishing a relevant internship while getting your degree, like an accounting internship. Look for entry-level financial work after getting your degree that can involve helping with research, resolving tax problems, preparing federal and state tax returns, or managing tax records. To become a tax analyst, many firms demand that applicants have five years’ worth of relevant experience.
- Consider a Masters’s degree: Consider pursuing a master’s degree in taxation, such one from the Master of Business in Taxation or the Master of Accountancy in Taxation programs. Although it’s not necessary, having this may open up more work prospects for you. One of these degrees could require the completion of classes on subjects like:
- progressive taxation
- Taxes on corporations
- partnerships and taxes
- pension schemes
- Plans that share profits
- Inheritance tax
- local and state tax laws
- the absence of taxes
- tax analysis
- Take certification exams: Obtain an appropriate credential, such as that of a Certified Public Accountant (CPA). This certification shows that you are knowledgeable about accounting and taxes, and it might open up more work prospects for you. While specific qualifications for becoming a CPA vary from state to state, they frequently include earning a specific kind of degree and passing an exam. Every few years, a CPA must go through the recertification process.
Where to Work as a Tax Analyst
- Corporate offices
- Accounting firms
- Government agencies
Tax Analyst Salary Scale
In the USA, the typical tax analyst compensation is $37.18 per hour or $72,503 annually. Most experienced workers earn up to $100,000 per year, while entry-level roles start at $58,500.
In the UK, the typical tax analyst’s salary is £45,000 per year or £23.08 per hour. Most experienced workers can earn up to £61,750 per year, while entry-level occupations start at £31,506 annually.
