Many companies and individuals use tax professionals to manage their finances properly.
In this article, we define the role, explain how to become a tax administrator, and list the necessary skills for the job.
Let’s start with a quick answer as to what the role of a tax administrator is.
Tax administrators, also known as tax managers, are financial service professionals who work with clients to manage tax reporting, planning and compliance with regulations. These professionals may work internally for a company as a part of the senior management team, or work externally as a consultant for multiple clients.
The subject of tax administration as a whole involves many different things, like:
- Compliance monitoring and enforcement;
- Taxpayer education and awareness; and
- Any other activity that can improve the efficiency and effectiveness of taxation.
What does a tax administrator do?
Taxes are established by tax statutes which form the basis of tax administration.
These tax statutes usually specify the tax rate, due date, basis of assessment, offenses, and penalties of the identified taxes.
Essentially, tax administrators operate as accountants that focus primarily on tax-related objectives.
Tax administrators assist clients with their taxes to help manage tax regulations, policies and procedures.
Other job duties of a tax administrator include:
- Developing tax-saving strategies, optimizing respective procedures and adapting to the identified options to ensure tax efficiency
- Processing regular tax computations while observing the law and other regulations
- Ensuring timely and accurate monthly and annual filing of corporate taxes
- Establishing appropriate systems or processes for tax risk management
- Liaising and lobbying with the tax authorities and providing tax audit support for the company
- Managing external tax authorities and consultants locally and regionally
- Providing internal tax advisory services and support on business operation matters to various departments within the company
- Preparation of regular reports for the management and ensuring the documentation of all taxations
How to become a tax administrator
If you’re interested in becoming a tax administrator, here are some necessary steps you can take to pursue this career.
1. Pursue an education
At a minimum, a bachelor’s degree is a requirement for tax administrators.
If you have an interest in this role, you can earn a bachelor’s degree in accounting, finance, economics or a related field.
A college-level education can prepare you to enter the field with a foundation of knowledge, including economic theory, accounting principles and basic mathematic abilities.
Additionally, a bachelor’s degree may help differentiate you from other applicants when you begin applying for roles at the entry-level.
2. Earn an advanced degree
Some companies may also require an advanced degree.
To further specialize your education, consider earning a master’s degree in accounting or a master’s degree in business administration.
There might be other tax-specific programs that may interest you as well.
Earning an advanced degree can further prepare you for the role as a tax administrator.
A master’s degree can demonstrate to employers the extent of your knowledge and expertise in the field.
It also displays a level of commitment to the field of accounting and tax.
3. Gain relevant experience
As you continue on this career path, it’s crucial to begin gaining relevant experience.
You might pursue an internship opportunity while studying for your bachelor’s degree and continue working throughout your graduate school studies.
Another way to gain relevant experience is by accepting entry-level jobs as an accountant before progressing in the field.
As you work in these positions, you can develop your skills, meet influential professionals and learn more about working in the tax industry.
Since many tax administrators have multiple years of experience in the field, it’s best to seek employment opportunities that teach you relevant skills.
4. Get a Certified Public Accountant certification
Another step you can take to prepare for a role as a tax administrator is to earn the Certified Public Accountant (CPA) certification.
This certification is well known, and many accounting professionals earn this certification.
Earning a CPA can prove to potential employers that you’re dedicated to the field of accounting.
It also demonstrates the level of accounting abilities you possess, which can improve your chances of being hired.
The CPA certification may take time to complete, but it can boost your resume and provide you with the necessary skills to advance your career.
5. Find a mentor
As you continue in your career, you might consider finding a mentor.
A mentor can be a professor, a co worker or another professional who works in your field.
It’s best to find a mentor that has experience in tax administration, or who currently works in a position that interests you.
As you meet with your mentor, you can ask them questions about the position, and they might provide wisdom and advice about advancing your career.
They might also help you identify areas of improvement so you can continue to develop professionally towards your goal of becoming a tax administrator.
6. Build your professional network
Another way to increase your chances of finding a job as a tax administrator is by building your professional network.
As you gain relevant experience in the field, it’s important to maintain connections with co workers, managers and senior leaders in the companies where you worked.
You might also foster professional relationships with clients throughout your career.
Building a professional network may lead to opportunities that can advance your career in tax administration.
What skills do you need to be a tax administrator?
Here are a few skills that are necessary for tax administrators:
Much of a tax administrator’s position involves analyzing a client’s tax regulations and thinking critically about how to best serve that client.
It’s important for these professionals to think critically in order to provide the best service possible to a client.
When working internally for a company, these professionals often help with large-scale business decisions to determine how they might impact the organization’s taxes.
This is another aspect of the job that requires deep analytical skills.
Another essential skill for tax administrators is the ability to handle complex mathematics.
While these professionals focus primarily on taxes, there is a high level of mathematical calculations involved in their daily work.
It’s necessary for the numbers to be correct to ensure that a client’s taxes are accurately reflected in yearly reports.
Diligence and integrity
This role requires you to deal with sensitive data and offer support in auditing processes conducted by the tax regulation bodies.
This requires you to have high levels of integrity and trustworthiness.
Good time management and ability to meet deadlines
Ensuring timely and accurate monthly and annual filing of corporate taxes requires you to have good time management skills, failure to which may lead to the company attracting penalties.
Our article on the best practices for tax administration also gives a bit of insight into the specific operational areas that a person would need to get a handle on in order to excel in such a role.
Have a read of it when you’ve got some time to spare!
Tax administration can be a complex process and may interrupt your focus and workflow.
It also requires a set of skills and expertise which an organization may lack in its internal team and that’s where outsourcing comes in.
At Flexi Personnel, we offer tax administration on our payroll processing spectrum.
Payroll tax compliance requirements and legislations are complex, change periodically and must strictly be adhered to.
Your internal payroll team will not only be required to keep up-to-date with changing tax regulations, but must prepare accurate payroll data and statutory filings accurately, and ensure payroll taxes are submitted on time every month.
Outsourcing your payroll helps mitigate the risk of mistakes being made during payroll and tax processing that could result in hefty penalties and fines.
We have highly trained and experienced resources who are efficient at handling all payroll requirements for both your employees and legislative tax authorities. We offer you capabilities that go beyond what you have in-house.
We not only give you more time to drive your business agenda but give you total peace of mind.
Talk to us today by getting in touch via our contact page.