Career Definition of Tax Managers
As a tax manager, you will be responsible for ensuring a company's compliance with all applicable federal, state, and local tax regulations. A primary job duty will be preparing taxes, such as quarterly and yearly returns and payables or estimates, and overseeing the work of junior tax personnel. This career may require you to conduct research on unique tax situations, especially for companies that have international assets. You may work directly for a company's financial department or for an accounting or financial services firm.
Your other responsibilities as a tax manager could involve overseeing all audits, establishing and employing methods to streamline tax preparation, and staying abreast of recent tax laws and educating management on their impact on the company. You may be tasked with staffing your tax department, which involves screening, hiring, and training employees. Tax managers may also be take on responsibility for liaising with an outside accounting firm during the tax preparation process. As a tax manager, you must be able to identify work practices or processes that may put the company at risk for tax liabilities.
|Educational Requirements||Bachelor's degree|
|Job Skills||Excellent financial aptitude, strong interpersonal skills, strong technical abilities, and effective management skills|
|Median Salary (2018)*||$94,045|
|Job Outlook (2016-2026)**||10% (Accountants and Auditors)|
Sources:*PayScale.com, **U.S. Bureau of Labor Statistics (BLS)
In order to work as a tax manager, you will want to pursue a bachelor's degree in accounting or a related financial discipline. Some employers may prefer an advanced master's degree. A strong background in tax accounting and income tax preparation will be beneficial to work as a tax manager. In addition to a bachelor's degree, some employers may also require you to be a Certified Public Accountant (CPA). The process to become a CPA involves passing the Uniform CPA test and meeting specific licensing requirements in your state.
As a tax manager, you must have excellent financial aptitude, with the ability to perform complex calculations when preparing taxes. You may be tasked with interacting with clients, so you should have strong interpersonal skills. With strong technical abilities, you will be able to utilize various computer programs for research and tax preparation. You will also need effective management skills to prioritize tasks and provide training to junior personnel as needed.
Career Outlook and Salary
The U.S. Bureau of Labor Statistics (BLS) does not list tax managers as a category; however, the BLS does provide information on accountants and auditors. The BLS listed a 10% job growth for accountants and auditors from 2016-2026, which is faster than average compared to all careers. PayScale listed a median annual salary of $93,994 for tax managers in February 2018.
You will need strong mathematical skills to work as a tax manager. You can utilize those skills in one of the below financial positions.