How Tax Accountants and Chartered Accountants Make the Task of Taxation and Accounting Simpler

Tax Accountants and Chartered Accountants
Post in Accounting Homework

As an online tutor for quite some time, I get to learn a lot from my students…you read it right! I learn. This is because ever since the fads of tax accountants and chartered accountants have risen, students seem to know only one career in their life.

It was not recently that I happen to visit my old college at Stanford University for a workshop. I was aghast seeing the king of knowledge the students were backed. They knew their future. But yet, there was something bothering them.

“When tax season nears, the only people wanted around are the Chartered accountants or the accountants.Actually, anybody with accounting background matters the most! So what makes taxation so difficult? It is getting the updated financial statements or having the right resources in front of you.”

Is this true?

I had no answer or little answer to it. But this is what I had to deliver it to the students out there.

“Why do you think companies from startups to Fortune 500 companies spend a fortune on Chartered accountants? Chartered Accountant jobs are the most crucial career that every accounting student looks forward to. If you can master the art of accounting, there is very little that can make you go away from being an ace chartered accountant.”

Across the globe, this profession is respected and scared too! They say never hide anything from your doctor…and your chartered accountant. If a good doctor is a cause of your good health, a good chartered accountant is the cause of your good wealth.

So what does a chartered accountant do for an organization? How does he or she become the most indispensable resource in the company, this and more as you read ahead?

Why pay tax?

Tax is a mandatory financial fee that is expected to be paid by an organization to the government. It is the tax charges that helps funding public expenditures. Paying tax is the social responsibility of every organization. Failing to abide by the rules and regulations of the law, there are penalties and punishable act too.

To put it lame, money that is paid in the form of taxes is used for our own benefits. The salaries of the government officials are all support from the tax we pay. Police to firefighters are there today for there are honest people like us who pay taxes on time.

It is incredible to know that we can travel on good roads because the government can afford to repair the roads.  Libraries, parks, ambulance services etc. are all a part of the taxes we pay.

There are changes made in the tax law that are often complex. It is the tax accountants that ensure that the companies, as well as the individuals, abide with the federal laws and the state income tax returns. Tax accountants benefit in giving tax planning advice. This, in turn, helps in businesses to flourish better and save a penny in taxes.

Huge demand for tax accountants has emerged. Every business organization requires an ace tax consultant. The schools and colleges are strict about accounting laws and taxation syllabus. This is probably the reason why the assignments based on them are stringent.

The AICPA (the American Institute of Certified Public Accountants) philosophy regarding fundamental tax reform compliances with 1986 showed that the tax hurdles for the taxpayers, enforcement challenges, and administrative complexity. Off late AICPA has supported the tax reform generality. This will make easier for taxpayers to reduce the stress and the tax compliance cost.

What is accounting after all?

To put it in simple words, it is the process of measuring and communicating financial information about business operations in a way that is accepted by all. It is the process of keeping financial accounts. 

However, this process requires a system. It must be done a systematic way. The recording of the financial transactions require principles on which such decisions are taken.

To cut the long story short, accounting summaries, analyses, and reports all the transactions to help individuals and companies for auditing, taxation, and financial advisory benefits.

The subject of accounting comprises of topics such as Account codes, Balance Sheet Reconciliations, Bank wires, receiving, Chart of Accounts (COA), Correcting journals without index numbers, Credit and debit card processing, Endowment, Equipment management, ledger closing, program code, fiscal closing, sales and use tax, tax-exempt status, income tax statement, etc.

Careers in accounting

If you thought you could only stop at capital accountant or a budget analyst, you are mistaken. There is a long list of careers waiting for you. You are good to go ahead with the Accounting Information System Specialist or Actuarial Accountant/Insurance Accountant, how about Comptroller/Financial Controller.

Not wasting further time, here is where you can find help from tax accountants and chartered accountants in getting yourself updated with taxation and accounting needs-

1.    Have your financial statements up to date

The most common problem of people with regards to taxation is not having proper financial statements recorded. It is an accountant who performs the financial functions related to collecting data to recording them. Analyzing every entry, its presentation in the books of accounts makes the work of every tax operator easy.

It is necessary that the accounting structure of a company be complacent is it is the primary financial standing that is showed to its shareholders, partners, tax consultants, vendors, and the public at large.

Also by having the updated financial information, helps in keeping the system pristine. It aids in operating and managing the business, therefore. Tomorrow if you wish to expand your business and need loans or want to go for IPO, it is your financial statements that are going to help you. (Of course, you must pay the taxes on time!)

2.    Get hold of 2018 Annual Tax Compliance Kit

The accountant will be in a position to keep the financial statements as per the Annual Tax Compliance kit. It helps the resources to comply with the laws of the tax. In return, it benefits the company. Timely taxation ultimately benefits in helping the organization to expand, take relative decisions and financially at large.

The need for such kit is as 2019 tax season begins, there are a lot of challenges in terms with new legislation, tax technology enhancements, tax technology, due diligence requirements etc.

When you have the right collection of AICPA resources it helps to file the season smoothly. Besides, the kit will help in preparation of returns to the tax session as it consists of engagement letters, checklists, organizer and practice guides.

There is no short cut to the means of knowing all this but there is certainly a smarter way of handling things. Get the Annual compliance guide kit ready.

It will help you go with innumerable ways. Tax accountants and chartered accountants also need to keep themselves updated, how do you think they do so?

3.    Get the right Analysis and Advice done

The core of every taxation process is the analysis portrayed by the accountants.  There are certain types of analysis that are conducted using financial data. It is based on this revenue and expenditure trends, future revenue expectation, financial commitments are decided.

The chartered accountant plays a significant role where developing resources and procedure, recommendations etc. are done by them. Auditing is one of the important aspects of every organization.

The process is an independent review of the financial information of the company. It demands the right balance of prudence and skepticism to come to consensus ad idem.  You are not done right if you have not got the analysis made. It helps the businesses to perform better and perform well.

4.    Educate yourself and your clients on the changes in the taxation norms

Many a time it is observed that the companies are not aware of the taxation norms.  Keep yourself as well as your client updated on the changes that are taking place in the tax laws.

There are several media to know so, for instance, FAQs on the web, news channels, podcasts, pocket guide on taxation and also the Tax Reform Resource centers. These are the places where tax accountants can ensure companies comply with the rules and regulation of the tax laws.

5.    Getting to start with Tax Return Preparation

The difficulty lies when there is inadequate time for preparation of tax.  You need to conduct a meeting with the client stating the documents that would be required to go ahead with the tax return preparation.

Documents such as investment income statements, financial statements, pay stubs and other documents as the tax accountant may think right. Also as a tax accountant, knowledge about the latest tax laws, tax deduction, credits etc. Often companies hire internal as well as external tax accountants who help to develop long-term plans and prepare the tax return too.

6.    Duties of entry-level and senior level certified tax accountants

Right form calculating the client’s earnings to fling and arranging all the necessary documentation is precisely the job profile of an entry-level certified tax accountant. It is these people who provide the clients with a summary of the tax liabilities.

While the approach in senior-level tax accountants’ confines to theoretical.  This level of professionals caters to the needs of the clients pertaining to business plans, minimizing the tax liability, adhering to the local, state and international tax laws.

Senior-level tax accountants are appointed so that there is complete compliance of all the applicable tax rules and regulations.

7. The long-lasting relationship with Chartered Accountants

Just like family doctors, every firm has its set of Chartered Accountants. These are the people who work day and night on the objective of the company. These experts are the core of every organization. It is a challenging jobs but also a rewarding one. The chartered accountant is the one who understands your financial matters blissfully well.

In order to have a healthy relationship between you and your chartered accountant, it is imperative that complete transparency is maintained. Failing to do so, in crises time, even professionals like them cannot help you. With the growing number of companies, the need for chartered accountants is growing too.

8. CAs makes Tax strategy making decisions

It is the CA of the firm that takes decisions related to tax statements. Preparation of corporate tax statements is bestowed on them. He or she is the person in charge of strategies. He is also the advisor, the strategist, and administrator in a number of ways.

9. Auditing review

It is the foremost job of a chartered accountant to get an independent review of the financial statements. What a computer cannot do, chartered accountants do.  Auditing is one of the crucial responsibilities of such professionals to catch hold of frauds if any.  The scope of such profession demands knowledge of tax, strategic decision making, financial reporting, technical accounting, presentation, critical thinking and many more.

10. The mightier chartered accountants and tax accountants

What tax accountants and chartered accountants can do, computers can hardly replace them. There is so much to do and check that there protecting each and every aspect of accounting will become difficult.

Thus, the portfolio of tax accountant does not only restrict to monitoring tax legislation, rules and regulations but also to supervise whether the books of accounts are kept as per the norms or not.

There is more than this that a person learning to account has to do. He has a wide scope of a career as it may be seen above. However, the idea is to keep all the resources intact to get the burden of taxation laid off.

For more updates, do watch for this space.

Author’s Bio:

MajaKazazic, has completed his MBA from Stanford University. He is the face of online accounting tutor.  His methods and teaching style are different from the traditional way of teaching. Students enjoy his sessions. He is associated with helpmeinhomework.com for the last six years. He enjoys blogging and narrates incidents that take place on a daily basis. Contact him to know how he can change your career goals.