How to Become A Tax Consultant In South Africa

Tax consultants often prepare tax returns for clients, or they provide information and advice to help clients fill out their own tax returns. They answer client questions, help them prepare for future tax situations, and analyze information to ensure compliance with government regulations.

What is the role of a tax consultant?

The primary role of a tax consultant or a tax advisor is to help people and organizations in paying their taxes. They hold expertise in tax law, tax compliance, and tax planning. They help in making tax returns and work closely with their clients to minimize their tax liabilities throughout the year.

Do tax consultants need a CPA?

Tax consultants do not have a formal certification process. However, they often have a bachelor’s degree in accounting, finance, tax law or another related field. Additionally, paid consultants or advisors who prepare tax returns must become registered tax return preparers under IRS law.

What do tax professionals do?

A tax preparer is a professional that is qualified to calculate, file and sign income tax returns on behalf of individuals and businesses. They can also represent the taxpayer during IRS examinations of tax returns. More than half of taxpayers hire a professional tax preparer when it’s time to file a tax return.

Below are steps to Become A Tax Consultant In South Africa

1. Research the industry and career

The first step to becoming a tax consultant is to find out as much information as possible about the career and industry. Read books on navigating tax law and search the web to find preliminary information on what a career in tax consultation is like. You may also want to attend a webinar or workshop for aspiring tax consultants.

Additionally, you can contact people who offer tax consultation services and speak with them about their careers. In your conversations, you can find out information to help you understand the daily expectations and overall compensation. You can also find out more about job satisfaction and potential opportunities for growth.

2. Earn a bachelor’s degree

After researching what it’s like to work as a tax consultant, the next step in your career journey is to earn a bachelor’s degree. Consider a degree in accounting, finance or economics. When enrolled as a full-time student, completing your bachelor’s degree should take approximately four years.

Completing a four-year degree can help you gain many of the skills and experience you will need for your career, and it can also help you connect with industry professionals, broaden your professional network and gain access to better jobs.

3. Research your state CPA requirements

CPA stands for certified public accountant. Becoming a CPA is not necessary for a career as a tax consultant, but it is a highly sought-after title in the fields of accounting, finance and tax consulting.

Each state has its own specific requirements for obtaining an official CPA license. Each state has varying levels of education, experience and preparation requirements, but all states require that candidates take and pass a CPA exam.

Depending on your location, you may need between six months to two years of industry experience before you are able to take the CPA exam.

4. Apply for an internship

An internship is a professional learning experience, which is sometimes paid or unpaid. Whether paid or not, the majority of benefits come from hands-on experience, networking opportunities and on-the-job training.

Typically internships last between one month and nine months, and you may choose to apply for an internship during your last year after school, or you may wait until after you graduate.

Gaining internship experience is especially important for aspiring tax consultants, as it’s a crucial step for those who wish to advance their credentials.

Earning the title of CPA, or certified public accountant, represents the highest certification for tax consultants. Depending on your state laws, the time spent during an internship may be applicable toward earning that title.

5. Take the CPA exam and apply for a license

CPA exam is a four-part test, in which each component is completed over the span of 18 months.

Regardless of which state you take your exam in, each test is approved and standardized by the American Institute of Certified Public Accountants. The exam tests a person’s knowledge and understanding of auditing, financial accounting and reporting, regulation and business and attestation.

Skills and attributes for a successful career in tax consultation

Here is a list of4 skills and attributes to develop for having a successful career as a tax consultant:

Mathematical ability

Tax preparation and tax consulting require that people have a strong understanding of financial math. Someone in this field should have an aptitude for computation, making mathematical projections and calculating percentages and interest.

This career is not the same as an accounting career, however there are many similarities. For this reason, skilled tax consultants should have a firm foundation in math and understand economic and financial principles.

Attention to detail and accuracy

Someone who has excellent attention to detail is thorough when reviewing documents and completing tasks. Tax consultants regularly read through large quantities of financial documents and reports, so it’s crucial that they maintain focus while reviewing them. A consultant must be able to identify small inconsistencies or errors so that proper tax information is reported and filed.

Companies and individual people rely on the accuracy of a consultant’s work. Each number and calculation is important, and proper documentation is necessary for abiding by tax laws, maintaining compliance with tax regulations and helping clients in avoiding further tax obligations.

Strategic thinking and problem solving

Large corporations, small businesses and individual people regularly see the guidance of professional tax consultants when facing a large financial burden. In cases like these, it is important that a consultant is able to think strategically about the issue or issues their client is facing.

A successful consultants use problem-solving skills to interpret their client needs and they apply creative financial strategies and their in-depth knowledge of tax law to best help them navigate situations and plan for the future.

Professional organization

Professional organization refers to the skills and techniques that a person uses at work to best facilitate a productive and efficient routine and environment. This may include the way a person maintains their schedule, cleans their workspace and organizes their files or paperwork.

Tax consultants must be organized, because they deal with large quantities of reports, computation models and financial accounting paperwork from their clients and client companies. These documents often need to be handled in a confidential manner, and must be filed accordingly.

Also, in order for a consultant to provide accurate and effective tax advice, they need to be sure that they have all of clients’ information. This is best done by keeping an organized workspace and maintaining a functional system for both digital and physical files and client information.

 Here are six core responsibilities of people who work in tax consultation:

Meeting with clients and client companies.

Calculating and assessing tax liability.

Preparing tax returns for clients and client companies.

Devising plans and tax strategies for individual clients.

Keeping up-to-date with tax laws and regulations.

Using computer software to compile and gather data.

What qualifications do you need to be a tax consultant In South Africa?

There are no prescribed qualifications to become a tax consultant/ advisor. Individuals with interpretation skills and expertise knowledge in Tax Laws can act as a Tax Consultant. Tax Laws are changing all the time so they should be up-to-date with recent Circulars, Notifications, Rules, etc

How much does a tax practitioner earn in South Africa?

How much do I stand to earn? At the time of this writing, the average pay for a Professional Tax Specialist (SA) is R473 271 per year, which translates to approximately R39 439 per month.

How long does it take to be a tax consultant In South Africa?

Most CPA programs include additional coursework to meet state requirements and typically take five years to complete. Tax professionals can also consider earning a master’s degree to make their resumes more competitive.

Who can be a tax advisor In South Africa?

Tax consultants may include tax attorneys, Certified Public Accounts (CPAs), licensed agents, and some financial consultants. A tax advisor is also called a tax consultant.

Do tax consultants need a CPA?

Tax consultants do not have a formal certification process. However, they often have a bachelor’s degree in accounting, finance, tax law or another related field. Additionally, paid consultants or advisors who prepare tax returns must become registered tax return preparers under IRS law.

What are the duties of a tax consultant In South Africa?

The primary role of a tax consultant or a tax advisor is to help people and organizations in paying their taxes. They hold expertise in tax law, tax compliance, and tax planning. Both individuals and business owners can hire a tax consultant for long and short-term tax optimization.

What skills are needed to be a tax accountant In South Africa?

Requirements

Proven work experience as a Tax Accountant, Tax Analyst or Tax Preparer.

Knowledge of accounting and bookkeeping procedures.

Familiarity with accounting software packages.

Computer literacy (MS Excel in particular)

Excellent analytical and time management skills.

Strong numeracy skills.

Keen attention to detail.

Is it hard to become a tax preparer In South Africa?

The task of becoming a tax preparer can be relatively easy compared to the rocky road of some similar ventures, such as becoming a real estate agent or an insurance agent. Tax preparation can be a quirky profession, meaning it is essentially not a year round profession but a more seasonal one.

What degree do you need to be a tax analyst In South Africa?

A bachelor’s degree in accounting, finance, or a related field is usually required for someone to be a tax analyst. If they wish to work for the Internal Revenue Service (IRS), they must also have at least one year’s experience within this.