Requirements For Becoming A Tax Preparer

Requirements for certification of accounting professionals, CPA’s, are determined by the Board of Accountancy in each state. Most states require a baccalaureate’s degree with a certain number of credit hours devoted to studies in accounting and business administration. Upon proof of completion of the required education, the State Board of Accountancy allows applicants to sit for the CPA exam. For those who pass and enter the field as certified public accountants, yearly continuing education is required to maintain active certification status.

Tax preparation services are not restricted to the field of certified public accountants. Outside Oregon and California, any person with the ability to work well with numbers and understand current tax law can assist others in the completion of their income tax returns. Education and training is available from a variety of sources to equip tax preparers with enough instruction and experience to competently prepare and submit tax returns for others.

Many well-known tax firms like H & R Block and Jackson Hewitt offer classes on tax preparation. There are also numerous online resources for taking instruction that are easily located by conducting an Internet search. Local community colleges have course offerings as well. One benefit of taking classes with firms like H & R Block is that upon acceptable completion of their course, graduates may then apply for a position with the company as tax preparers.

Working As A Tax Preparer

Most established tax preparers agree that the best way to enter the field is to avail yourself of the instruction offered by well-known tax firms, spend a few seasons working with them under the supervision of knowledgeable personnel, and then strike out on your own. Others don’t feel the need for supervisory oversight and recommend easing slowly into the field by handling simple returns and gradually building up to more complicated, difficult ones. Either approach is reasonable as long as care is taken to verify information and sources.

Regardless of the level of training and education a professional may have, the most important issue in successfully managing tax matters is compliance with and knowledge of current IRS tax code, which is updated from year to year. Tax preparers and CPA’s alike must keep abreast of current developments in tax codes and laws in order to provide competent service to clients. Continuing education at both ends of the professional spectrum is not only advisable, but in the case of CPA’s, required. Courses to fulfill certification requirements as well as to enhance the working knowledge of individual tax preparers are available from multiple sources including online schools, seminars, colleges and junior colleges, and tax preparation firms.
Many additional issues are inherent to the tax preparation industry and should be considered when deciding whether to enter the field. The ability to disseminate the constant flow of facts and information generated by the Internal Revenue Service will be pivotal to the successful navigation of the tax preparation process. This will be an ongoing endeavor since bulletins and updates are discharged regularly by the IRS. All information needed to complete tax filings is garnered through interviews with clients, so an ability to handle people with courtesy and respect is important. This is, after all, a service profession dedicated to the assistance of others during what may occasionally be a difficult process for them.
Work flow in the tax field tends to be cyclical with the months of December through April being the busiest. Long hours and late nights at this time may be unavoidable in order to meet crucial deadlines. Tax preparers must be willing to accept responsibility to maintain and meet all deadlines on behalf of their clients.
After due consideration of the requirements and educational experience needed to perform well on behalf of others in the preparation of their taxes, the next area to address would be local business requirements. A call to your local city and county offices will educate you in what’s required, if anything, to operate as a tax preparer in your area. A call to the IRS will be in order if you intend to offer “e-filing” to your clients. Application must be made to the IRS to be set up to “e-file” clients’ returns. It is also important to remember that computer programs for income tax preparation were not made to allow for multiple filings. Commercial software must be employed to generate a large number of tax returns.
Starting out slowly seems to be the key to success in the field of tax preparation. With due diligence in the area of oversight and continuing education, progress can be made in growing a busy, thriving business that can be tailored to your hours and environment and the needs of your clients. The potential for income in a self-employed scenario is limited only by your own abilities and will surely grow with your business. A tax preparation service fills a need in the community and can be of benefit to both you and your clients.

The most successful accountants show an aptitude for math and an inherent attention to detail, lack of accuracy in this profession can mean an audit or fine for a client. While accounting clients in days of old were familiar with their CPA using a hand adding machine or calculator, today’s accountants must utilize modern tools such as computers and accounting programs. It is highly recommended for any potential accountant to become familiar with as many accounting programs as possible. Diversity of knowledge regarding accounting programs can be a major asset during a post graduate job search.

Educational Requirements for an Accounting Degree

High school students who are interested in becoming accountants should work with their guidance counselors early. Working toward applying for colleges with accounting programs generally requires specific math courses and grades. Students who do not show an early aptitude for advanced math may have difficulty with college level math and accounting courses.

It is best for any potential accountant to decide early in their college career which field they will work in after graduation. There are multiple major fields to work in such as public accounting, government accounting and management accounting. Each major accounting field has minor career paths to choose, with each field requiring different college courses to complete.

Important extra curricular education for a college accounting student is internship in an accounting position with a major company. Any internship should be done during the summer, outside of classes, when the student can concentrate on full time work in their chosen field. There are a large number of companies that will only hire new accountants who have had some internship experience prior to graduating.

The final educational step for any accountant is to obtain their CPA certification from the state in which they plan to practice. This last step is completed by passing the Uniform Certified Public Accounting Exam, which cannot be taken by anyone without a bachelor’s degree in accounting and some type of experience in the accounting field.

Companies will usually only hire accountants who are also CPAs, or certified public accountants. All states require a potential CPA to have at least a bachelor’s degree in accounting or related business course prior to taking the CPA exam. Colleges chosen for their accounting programs should also be accredited by their state to offer courses that are approved for the CPA exam. Many states require at least 150 semester hours to complete an accounting degree. An excellent resource to find out exactly what each state requirement is for the CPA exam is the American Institute of Certified Public Accountants, www.aicpa.org. This professional organization’s site also offers information on accounting profession requirements.

How to Start and Accounting Career

There is an expansive list of career paths an accountant can select when selecting employment. There are simple accounting jobs that entail basic record keeping and filing individual tax returns to complex forensic accounting jobs for the IRS and law enforcement agencies. A certified public accountant can also be called upon to dissect complex financial records for court bankruptcy hearings. As opposed to the historical depictions of the boring accountant, modern day CPAs hold some of the most security sensitive and high power positions in the world. Not only are CPAs potentially responsible for convictions and acquittals in criminal cases, accountants are some of the most trusted financial advisors consulted by CEOs of major corporations.

The best way to find a position as an accountant, either as a new graduate or as a more experience professional, is still the employment advertisements. Submitting a resume and cover letter to companies seeking to fill a position in their accounting department is the most efficient way to get an interview. Polishing a competent, accurate resume will often make or break a job opportunity. It is most important to gear any job search toward the field in which an accounting degree was obtained. An accountant educated in forensic accounting will have a more difficult time finding a position as a tax accountant than a graduate with an education in tax accounting.

A slightly less traditional method for finding an open accounting position is to join the staff of a temporary employment agency. This allows accounting professionals to “test drive” a company to match up with the perfect employment fit. It can also allow an accountant to hone their skills without locking into a set career path. Hard work and professional accuracy can often turn a temporary position into a permanent career.

Why Be an Accountant?

There are many rewards to the profession of certified public accounting. There is the variety, an accounting professional can be educated and certified in a multitude of disciplines. From individual bookkeeping and tax returns to non-profit and large corporate financial advising, accountants hold a large amount of responsibility and trust. In some cases, businesses and individuals will trust their accountant with their entire financial well being. Accountants are often responsible for budgeting and finance tracking for corporations, along with cost analysis and financial statement verification for shareholders and lending institutions. Anyone with an early aptitude for math and an eye toward accuracy should investigate the possibility of a career as a certified public accountant.