Standard accountants have both a general knowledge of taxation laws and a wider understanding of specialised accountancy – regarding factors such as assets, estates, redundancy and retirement packages, and investment options. Taxation accountants (or chartered accountants) on the other hand have often undergone more extensive training and have gained hands-on experience as a prerequisite of their qualifications. Chartered accountants need to complete a postgraduate program in taxation law and then they are required to work under a mentor program (alongside a taxation professional) for at least three years.
Although accountants may have a wider range of skills, taxation professionals tend to have undergone far more training than their counterparts. This is because they are required to possess a more in-depth understanding of taxation, as well as a wider range of experience in the field. In general, chartered accountants need to complete an academic postgraduate program and then work alongside a professional (under a mentor program) for at least three years. This specialised field of accounting offers an individual or business much more specific and accurate records of their financial transactions, and can often be hired in a more freelance capacity (based on the general payment nature of individual fees) than an accountant – who will be more likely to own or run a practice.
A tax accountant is a particularly important factor if you have more than one entity under your name. You will need a tax accountant who will be able to manage, coordinate and track money moving between those entities, and this is not a skill that all professionals have as standard.
If you would like more information on what to consider before you hire a tax accountant, please feel free to contact us.Dan Croke