Employment outlook for an Accountant

Answer 1

Governments have big budgets. They pay for things like roads, parks, and public schools, just to name a few, and though we all enjoy the benefits of these things, they aren't free. They are funded or paid for by our tax dollars, which we pay to the government based on our income. To find out how much of our income we must pay to the government, we often turn to tax preparers. These tax experts fill out the complex tax forms, or "tax returns," that must be submitted to the government each year.

Tax preparers start by reviewing clients' tax records and interviewing clients to gather information about their income, expenses, and investments. For instance, in addition to filling out a general form, the client may have to fill out special forms if they have children in daycare and want to claim a deduction for daycare expenses, or if they rent a house to a tenant and have rental income.

In addition to talking to the client, tax preparers gather proof of income and expenses. Proof of income may be a statement from an employer showing salary and any deductions for the year, and proof of an expense could be a receipt for a donation made to a registered charity. In some cases these documents must be submitted to the government along with the tax return.

Once tax preparers have interviewed the client and collected all the necessary documents, they must fill out the required forms. Using their specialized knowledge of tax regulations, they use all the available deductions to ensure their clients' tax debt is as low as possible. While tax tables and calculators are widely used, preparers who work for large firms usually use sophisticated software programs which can make the work faster and more efficient.

Generally, tax preparers can complete a tax return during a single interview with a client. However, complicated returns require more time and research. When working on complex returns, preparers often refer to tax law guides. After completing the tax return, the tax preparer either gives it to the client to file, or files it for the client. Returns may be filed online or through the mail.

Some tax preparers with training in accounting-in particular those who are self-employed or who are employed by large firms to work on the tax returns of large businesses-may also help clients with tax planning and audits.