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Tax Analyst: Job Description and Career Information

Updated on March 11, 2013
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A tax analyst specialises in a company’s tax related issues. This analyst uses fiscal skills, business acumen and financial knowledge to evaluate a company’s operating information and recommend strategies to save taxes. In addition to these duties, an analyst has to review corporate taxes; tax guidelines and internal controls in order to ensure that the company’s policies meet regulatory requirements, fiscal rules and industry practices.

Responsibilities of a tax analyst

A tax analyst has to play two crucial roles in the industry. The analyst has to help the company to file accurate tax returns and at the same time supervise that the company abides by fiscal rules while preparing the return. Such tax professionals review company’s financial data to find out how much tax does the business owe. Although, it is a time consuming aspect, such an assessment will offer the analysts an understanding of company’s tax practices. The tax analyst reports to the top management if any discrepancies exist. On approval, the analysts will put the new practices into place.

Another major duty of these tax professionals is to complete various tax forms. In order to perform this duty effectively, they have to do all financial calculations. In large companies, these professionals work with government tax officials to make sure tax calculations are accurate and properly submitted.

The tax analyst assesses company’s internal policies and guidelines and ensures that these are prepared in compliance with fiscal laws. A tax analyst computes quarterly or annual corporate tax liabilities of a firm and file them on-time.

The analysts also help a company identify the loopholes of laws that may lead to deductions in taxes or larger return of funds. This job demands an in-depth knowledge of tax structure and business practices.

Tax analysts play a crucial role in domestic as well as international businesses. Their job is challenging as tax laws are often revised. Therefore, it is their major responsibility to carry on researches and stay up-to-date with the knowledge of applicable tax codes.

Education and training

A bachelor’s degree in tax, accounting, audit or business management is ideal for those aspiring to the position of tax analyst. However, many employers seek candidates with advanced degrees. It depends on the business requirements and type of industry.

Graduates may try for entry-level positions and those working in such positions have to prepare federal and state tax returns; assist with research; maintain tax records and resolve issues. Senior positions require advanced tax research, preparation and planning. However, it is difficult to achieve the position of a tax analyst with graduation degree. Most employers search for experienced professionals to perform these crucial duties. Those having an internship experience in the related field have a better employment opportunity.

Many jobs require these tax professionals to be certified. Certification in Public Accountancy and Taxation will keep you much ahead in this competitive job market. The tax analysts have to attend training sessions throughout the year to learn new developments and principles.

The tax analysts have to use online tax research database, tax preparation software and Microsoft excel to carry on their duties. Therefore, these computer skills are essential for working in this field.

Career prospects

The tax analyst has the opportunity to move to a senior accountant role with a few years of experience. Companies usually seek investment decisions from these senior accountants. Hence, before moving into this wealth management field, you have to develop in-depth fiscal knowledge.

Finding a tax analyst job

There is an increased demand for global tax analysts. Tax recruitment specialists may assist you to find out such vacancy related information in different sectors. However, an international tax analyst requires gaining knowledge of tax regulations and compliance of different parts of the world.

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    • SidKemp profile image

      Sid Kemp 4 years ago from Boca Raton, Florida (near Miami and Palm Beach)

      Thanks, JohnBene. This is useful career information. One interesting career path in the US for a tax analyst is to work for the IRS for a few years, then bring the interior knowledge from government experience to one's clients.

      It would be interesting to learn more about tax analysts as professionals in different countries, and the difference between careers for corporate tax analysts, independent CPAs, and CPAs who work primarily preparing individual returns.

    • johnbene profile image
      Author

      Daniel Smith 4 years ago from Ireland

      hello sid,

      thanks for your comment. Yes I would definitely write something about this...

      Regards

      John

    • sanasiddiqui profile image

      sanasiddiqui 2 years ago

      Thanks for sharing details and description about a Tax Analyst position. It plays a very crucial and tough role in any organization.

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