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June 22, 2023

The Difference Between A Tax Advisor and An Accountant

An accountant and a tax advisor both serve specific financial requirements and they are certainly not the same. You need to choose one of them based on your financial requirements. Each of them has different roles to play to ensure efficient personal and corporate financial management.

Tax Advisor vs Accountant – Understand the Differences

To make the selection, you must know the primary difference between a tax advisor and an accountant and their work. In this article, we will discuss the difference between them in detail so that the selection becomes easier for you.

What role does an accountant play?

The role of an accountant is considered one of the most diverse roles in the finance industry. They should have the ability to give suggestions on various topics in this field and stay updated about the same. There are different types of specialist accountants and their roles are generally associated with the following

  • Advising companies regarding the accounting process
  • Making profit and loss statements for a company
  • Guiding companies in producing company budgets and cost-saving measures
  • Setting up an accounting process for new companies
  • Analyzing business performance and budget etc
  • Tax preparation service in Mississauga or tax preparation

Accountants hold the ability to perform tasks from maintaining daily bookkeeping services to acting as virtual finance directors. They need to show their skills and efficiency in broad and common areas of tax advice but it is counted as one of the areas that they must cover.

So it is quite evident that their knowledge of tax can never be able to beat the in-depth knowledge of a tax specialist.

What role does a tax advisor play?

Tax specialists usually take the first step in their careers as accountants. Eventually, they move forward to develop specialized skills in taxation, gaining professional tax qualifications. They go through special training in personal business and corporate taxation along with a thorough knowledge of VAT on domestic and overseas transactions.

This level of specialization particularly suits more complex tax advice for personal or more complicated business structures. Tax laws cover a huge and complex area and it is almost impossible for an accountant to have such an in-depth knowledge of tax.

Should you go for an accountant or a tax advisor?

The answer is completely dependent on the type of financial assistance you are looking for. If you are an owner of a startup company, you are recommended to stick to accountants.

They can help you with almost every financial aspect of your business along with tax planning and compliance advice that is mostly required at this level.

In case your tax affairs are complicated then a tax advisor will be more helpful. A tax advisor can better guide you to create a higher level of tax savings and compliance.

Selecting a firm that offers both the services of accountants and tax advisors is a smart choice for some people as they can have access to both areas of specialism under the same roof.

Bottom Line

Numerous courses give accounting professionals a step up in the tax specialization; these will help them differentiate themselves from the competition and earn higher salary rates. Reach out to Gettrainedgethired.com to book a free 30-Minute career counseling meeting. At Gettrainedgethired.com we provide you with the necessary training to learn practical skills to become an accountant. Our training is based on practical real-life cases.  After the training, we work on your resume and try to place you in accounting firms through our network. You will also get access to like-minded individuals who are looking for jobs through our WhatsApp group. Please feel free to contact us at [email protected]. Or call us at 647-275-7150.

Disclaimer: The information provided on this page is intended to provide general information. The information does not consider your situation and is not intended to be used without consultation from professionals. Salman Randhawa and Gettrainedgethired.com will not be held liable for any problems that arise from the usage of the information provided on this page.

Author

Salman Rundhawa

Salman has a strong desire to help others succeed and believe in passing on the knowledge. He likes to mentor others and wish to play part in other people success.
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