Reason #1: You Can Actually Help People & Yourself
Let’s start out with the absolute top reason to go into tax accounting above all others, you have an opportunity to make a difference to the individual.
From someone on the other side of the fence (been an auditor for several years), I constantly get asked about taxes. There is a huge misconception in the world of those outside accounting, that all accountants do taxes. This is far from the truth. Just like doctors and lawyers, there are many different things that accountants can do.
Often when I hear people talk about their future careers, they talk about wanting to make a difference in someone’s life. Well, taxes affect everyone, from businesses to individuals. Individuals in particular often ask me for tax advice and I always kindly remind them that I can barely do my own taxes, let alone give them advice on theirs, even despite being a CPA. I know the basics, but I’ve never completed a tax return other than my own. Oh how I wish that I had the answers to their questions. That I could sit them down and give good advice. As an auditor, I occasionally offer suggestions to my clients as myself and my team review businesses’ books, but it’s not quite the same, and my expertise can really only help a small set of industry specific business personnel. When you’re able to help out your friends and family instead, it’s a bit more rewarding. Feels like you are needed.
Now of course, that’s just my humble opinion, but that’s been my observation over the last several years. It’s something I didn’t fully consider when deciding what field that I wanted to go into.
Reason #2: Great Inside Look At The Inner Workings of Businesses & Individuals
Tax accounting can be a really cool way to find out how much money individuals and businesses have. You get to see how they make money, how they spend money, and you get to understand a bit more about how companies work and how individuals live their lives. This may not be interesting to everyone, but it’s definitely something interesting to me.
Now I will say that this alone isn’t necessarily unique to tax accountants only. For example, auditors and consultants may see this too. But tax accountants, and least on the individuals side, are more likely to see this compared to other areas, that may be more business focused and not see induvial finances, so if that is something that interests you, it might be worth considering.
Reason #3: Lots of Different Opportunities to Specialize
Last but not least is that being a tax accountant allows for a lot of different opportunities. There are numerous companies that you can work for. You can work for a big corporation and be on a large team handling their books. You could work for a small start-up company and offer tax advice. You could also work for a public accounting firm and work with many different clients throughout the day. This could include doing individual tax returns or business returns. This could mean specializing in a specific industry or working with nonprofits.
There’s also the ability to specialize in individual tax topics. This may include individuals and trusts, cryptocurrencies, SALT (State and Local Tax), etc. If you want variety, you can definitely have it as a tax professional.
Hope this helps in giving you a few things to think about if you’re thinking about what kind of accounting career you would like to have. Best of luck!