Is Corporate Tax Accounting The Appropriate Career For You?
Generally, any form of business which is run as a corporation is liable to pay corporate taxes. However, it may be noted that a corporate income tax does not refer to a tax on your corporate income, but the corporate profit tax. Corporate taxable income describes the outstanding income after deduction of business expenditures. The taxes range between 15-39%. Therefore, the branch of tax accounting which deals with corporate taxes is referred to as corporate tax accounting.
The corporate tax accountants specialize in corporate tax as well as other taxes like local and state taxes which a corporation owes. The job responsibilities of a corporate tax accountant includes keeping yourself abreast with the changes in tax requirements, offering tax planning advice to monitor the operations of a company, preparation of corporate tax returns as well as complying with the local, state and federal tax laws.
Corporate accounting, especially corporate tax accounting is considered to a complicated field. Hence, a particular set of skills is needed for becoming successful in this field of accounting. Let us examine the skill set required for making a successful career in the area of corporate tax accounting.
Corporate tax accountants are required to read and interpret complicated Internal Revenue Service documents for companies. Not only do they need to understand the tax jargons, but also utilize the information for benefit of the organization. Moreover, they are required to put the information in simple words for making it comprehensible to a layman. Therefore, a person who intends to specialize in the field of corporate tax accounting must possess effective reading and comprehension skills. Simultaneously, as the person also needs to explain the corporate tax laws to management, he/she must have excellent communication skills also.
Apart from these, the tax laws are not fixed or unchangeable. Therefore, changes can be introduced in these laws and they are open to interpretation. Moreover, corporate tax accountants must be capable of assessing the areas and enable sound decision-making on the basis of their observations. Last but not the least, accounting skills is necessary for the corporate tax accountants.
In general, large corporations have their own tax departments. However, small corporations hire consultants like a firm or an individual who specialize in the area of corporate taxes. Therefore, providing consultancy services are another viable career alternative. The tax accountants working with in-house tax department of a corporation become familiar with the financial aspects of that business.