Looking for a career that offers excellent job security as well as a clear path to advancement? If you enjoy helping people as much as you do juggling numbers, a career as a tax accountant may be right for you!

Job Outlook for Tax Accountants

"Much faster than average employment growth will result from an increase in the number of businesses, changing financial laws and regulations, and greater scrutiny of company finances."
                                                ~ Bureau of Labor Statistics Occupational Outlook Handbook, 2010-2011

The Bureau of Labor Statistics estimates that job opportunities for accountants will grow by 22% between 2008 and 2018, much faster than other professions. Employment growth for tax accountants will be driven in particular by the increasing complexity of tax laws for business and individuals. For example, the recent Sarbanes-Oxley Act of 2002 has been referred to as the "Full Employment for Accountants Act" due to the demand it created for additional accounting help from companies struggling to remain in compliance with a constantly moving target. The Obama administration's focus on international tax compliance, and the need for new taxes to deal with a growing government deficit, are two additional factors expected to drive job opportunities for tax accountants for many years to come.

Benefits of a Career in Tax Accounting

"The advantage to owning my own firm is that I can take off on Fridays and take ballroom dance lessons in another state!"
                                                                       ~ Christine, Accountant, Virginia

Tax Accountants benefit from the ability to pursue their career in a variety of work environments, from large corporations to government to sole proprietorships. Many accountants enjoy the greater flexibility that comes from being their own boss, including more flexible work hours, the ability to work from home, and the satisfaction of having earnings limited only by the quantity and quality of work output. Others choose the exhiliaration of climbing the corporate ladder in a traditional "Big Four" accounting firm, where the pace is fast but the rewards are great: top partners can earn several million dollars per year.

Tax Accountant Salary

Salaries earned by tax accountants vary depending upon experience, education and professional qualifications, and responsibility level. In addition, a typical starting salary amount depends upon the usual factors such as type of employer (government, large firm, self-employed, etc.) and geographic location (small towns generally pay less than major urban centers where cost of living is higher). The average salary for a tax accountant in 2010 according to the Bureau of Labor Statistics was $61,480. However, that figure belies a significant degree of variation, and your expected earnings may vary considerably. Right out of college, a Tax Associate with an undergraduate degree working at a Big 4 accounting firm such as PriceWaterhouseCoopers, KPMG, or Deloitte can expect a salary starting at about $45,000 per year, and increasing to $78,000 with a few years experience. With a CPA qualification and an advancement to Tax Senior Manager at one of the Big Four firms, tax accountants earn from $110,000 to $225,000 per year, depending upon experience and performance.

Growth Opportunities

Tax Accountants can increase their expected salary by gaining additional professional certifications such as a Certified Public Accountant certificate, or an advanced degree such as a Master's or a JD in Tax Law. Of course, the ultimate earning opportunity comes with ownership of an accounting firm, either as a Partner in a larger firm or as a sole proprietorship. Top performing partners in Big Four Accounting firms often take home in excess of a million dollars per year. Not surprisingly, competition for these positions is intense. More accessible is partnership in a medium-sized accounting firm or "hanging out a shingle" as a self-employed accountant. A tax accountant's income in these positions will depend largely upon their ability to bring in profitable high-margin business for their firm, although solid performers regularly earn six-figure salaries.

For more information on the various types of tax accountant jobs, including job requirements, responsibilities, and salary expectations, please click on the job title below.