Tax Advisor vs. Tax Consultant: What Are the Differences?
Learn about the two careers and review some of the similarities and differences between them.
If you’re interested in a career in tax, you may be wondering what the difference is between a tax advisor and a tax consultant. Both roles involve helping clients with their taxes, but there are some key differences between the two. In this article, we’ll discuss the differences between tax advisors and tax consultants, and we’ll provide some tips on choosing the right career for you.
What is a Tax Advisor?
A Tax Advisor is a professional who helps individuals and businesses minimize their tax liability. Tax Advisors use their knowledge of the tax code to identify opportunities for their clients to save money on their taxes. They may also provide guidance on how to comply with tax laws and regulations. Tax Advisors may work for accounting firms, law firms, or they may be self-employed.
What is a Tax Consultant?
Tax Consultants advise individuals and businesses on how to minimize their tax liability within the bounds of the law. They work with clients to understand their financial situation and identify opportunities to minimize taxes. Tax Consultants may also represent clients before the IRS or other tax authorities. They may prepare and file tax returns, as well as handle audits, appeals and tax collection proceedings. Tax Consultants typically have a background in accounting, tax law or finance. Many Tax Consultants are certified public accountants (CPAs).
Tax Advisor vs. Tax Consultant
Here are the main differences between a tax advisor and a tax consultant.
Job Duties
Tax advisors and consultants share some of their job duties, but they also have unique responsibilities. Tax advisors work directly with clients to develop tax plans that help them achieve their financial goals. They research tax laws and advise clients on how to implement effective strategies.
Tax consultants evaluate a client’s current tax situation and provide recommendations for improvement. They often work with companies or individuals who want to hire them for a set period of time to address a specific tax issue. For example, a company may hire a tax consultant during the year to ensure they’re filing accurately, or an individual may hire a consultant to complete their taxes for them.
Job Requirements
To become a tax advisor or consultant, you need at least a bachelor’s degree in accounting, finance or another related field. Some employers may prefer candidates with a master’s degree as well. In addition to their educational requirements, tax advisors and consultants must also have experience working with taxes. This experience can be gained through internships, part-time jobs or other work experiences. Many professionals in this field also pursue certifications, such as the Certified Public Accountant (CPA) license or the Certified Tax Advisor (CTA) designation.
Work Environment
Tax advisors work in a variety of environments, including accounting firms, corporations and government agencies. They may also work as self-employed consultants or own their own tax advising business. Tax advisors typically spend most of their time working in an office environment, but they may travel to meet with clients at their place of business or visit them in person.
Tax consultants usually work for consulting firms that provide tax advice to individuals and businesses. These professionals often travel frequently to meet with clients and attend conferences related to taxation. Consultants who work for large firms may have more regular hours than those who work for smaller companies.
Skills
Both tax advisors and tax consultants need to have excellent research skills to be able to find relevant information to support their clients’ or employers’ needs. They also both need to have strong analytical skills to be able to understand and interpret data.
Tax advisors typically work with individual taxpayers and help them prepare their taxes. They need to have strong customer service skills to be able to build relationships with their clients and provide them with the best possible advice. Tax consultants, on the other hand, work with businesses to help them minimize their tax liability. They may need to have project management skills to coordinate teams of accountants and lawyers to complete complex projects.
Salary
Tax advisors and tax consultants both work with clients to help them understand and comply with tax laws. Tax advisors and tax consultants both earn an average salary of $70,373 per year.