Tax consultants usually help people in calculating taxes. As per the U.S. Bureau of Labor Statistics (BLS), tax consultants refer to tax experts that help in estimating tax returns as well as tax payable for individuals and small businesses.
Although they are not professional accountants, they are certified to offer consultation services regarding tax to the concerned entities. They are not truly professional in the sense that they typically lack a formal training or a real experience background, the two features that every accountant possesses!
Probably, this is why the responsibilities of tax consultants tend to differ from those of the accountants.
Experience of Tax Consultants
As per the BLS, on-the-job training of moderate duration is the most major way of being a tax consultant. Throwing more light on the educational qualifications, the Occupational Information Network has disclosed that a tax consultant might have received relevant training in vocational schools, on-the-job experience, or might have obtained an associate's degree from a respected institution or university.
Therefore, these consultants are proficient enough to interview clients, review their financial records, and use computer programs such as accounting software, human resources software, financial analysis software, and tax preparation software.
Hourly Wages of Tax Consultants
One of the major questions that the tax consultants ask is what should be their hourly rates. In this regard, the BLS has already revealed that tax preparers tend to earn $17.34 per hour on an average, according to their survey in 2009.
Per year, they tend to earn around $36,060. The survey further revealed that the companies or individuals approached and employed the maximum number of tax preparers for the purpose of accounting, bookkeeping, tax preparation, and payroll services at an annual wage of around $35,740.
Even other companies engaged into management, securities, and insurance took the help of tax consultants for an average pay of $51,500, $54,110, and $62,090 per annum.
Usually, the hourly rate differs from one region to another in the United States. The factors that affect the hourly pay rate for tax consultant are the area in which the consultant is operating, experience level, complexity of tax return, and the type of company for whom the service is provided.
A CPA candidate or a staff bookkeeper would get almost $65-$85 per hour for sorting out the receipts. With more experience and personal loyalty to a company, the CPA can get $150 per hour. The sky is the limit if the person is quite talented, as she or he can bag $250 to $500 per hour.
According to a salary survey, a tax consultant earns almost $325,000 per year on an average. This is applicable for the period 2008 to 2012. And at present, the average salary for a tax consultant in UK is £38,500. In this nation, working 250 days a year and 8 hours a day fetches an hourly rate of £20.18.
Overall, the hourly rate actually depends on how much messy the work is and how highly qualified a tax consultant is!