Do you know the difference between an accountant and a tax specialist accountant? The roles are different, with different specialities. Both have an important role to play in ensuring efficient personal or corporate financial management. And substituting an accountant for a tax specialist can have serious consequences.
What is an Accountant?
Accounting is a whole lot more than crunching numbers, tax returns and balance sheets. An accountant is responsible for analysing, interpreting and reporting on financial matters. Further, accountants are skilled problem solvers and strategic advisors that can add significant value to businesses and individuals. Accountants carry out tasks, including:
- Providing advice on the financial health of a business
- Ensuring taxes are paid on time
- Review profit and loss statements
- Troubleshooting cashflow problems
- Chasing unpaid invoices
What your accountant does will vary depending on the structure of the organisation. They are also responsible for managing financial assets and providing relevant advice.
As a result, an accountant must show competency in broad and common areas of tax advice.
What is a Tax Specialist Accountant?
A tax accountant specialises in guiding through clients through increasingly complex tax rules and regulations. They are a financial expert with train in taxation law. As a result, they can work at a variety of levels and in a variety of settings, including corporations, non-profits, and government agencies. They also work as private, individual practitioners. At the very minimum tax specialists fill out the necessary tax forms for their clients or for the business they work for. But a tax specialist can do so much more than that. Tax specialist accountants review the work of others, set tax policies, ensure compliance, and advise leadership on best practices and issues related to tax.
Most successful tax specialists also have strong technical knowledge. They need to implement new electronic systems for preparing, storing and submitting tax-related forms and statements. They also need to know how to utilise your chosen accounting software, like Xero.
- Hiring an appropriate tax specialist accountant means:
- You save money at tax time
- There is no need to pull out records and try to do your tax yourself
- You have someone in place in case you get audited
Tax Preparation
A professional tax specialist can help you throughout the tax planning process. Further, they can also give you professional advice on tax planning.
Tax planning isn’t done just before the end of financial year. It actually continues throughout the year. You should be discussing your tax plan throughout the year, to discuss strategies for legitimately minimise your taxes. A tax specialist accountant stays current with tax law and regulations, helping you navigate this difficult aspect of running a business.
Once your tax return is filed, there may still be work for a tax specialist to do, especially if you get audited. As a result, it makes sense for you to have your specialist there to help.
Should I Choose an Accountant or a Tax Specialist Accountant?
Choosing the right person for your needs is not always an easy task. The difference between an accountant and a tax specialist is not always obvious to everyone. Although they have very closely related duties and work in the same environment, the tasks undertaken by a tax specialist accountant and an accountant are not the same.
Accounting Tasks
An accountant is responsible for the financial accounts of your business. They manage expenses, revenue, and budget creation. They follow up all financial operations carried out by the company and determine the monthly, and annual, balance sheets in order to advise you.
Tax Specialist Tasks
On the other hand, tax specialist accountants are generally the middleman between a company and tax authorities. They can intervene in cases of litigation and technical tax procedures. They have a mastery of tax law, protocol and regulation that an accountant does not have. Basically, the legal aspects of taxation or litigation are the areas of expertise for a tax specialist. They ensure you remain compliant to all tax laws and regulation.
Is There a Risk in Choosing the Wrong One?
If you choose an accountant over a tax specialist accountant, then you may miss opportunities for tax relief and more efficient tax planning. A tax specialist’s role is to know when and how to claim tax relief, as well as apply their knowledge to best help their client.
Surrounding yourself with qualified financial experts is the key to your success. If you are looking for the right accountant or a specialist for your business, contact the Siragusa team today. We can help you streamline your account planning, ensure you remain tax compliant, and help you shoot toward success!