Know The Major Duties and Responsibilities of a Tax Consultant

July 19, 2022   

Want to know about the major duties of a tax consultant? well hey, guys in this article I am going to discuss the major duties and responsibilities of a tax consultant. So keep reading the article to get the answer to all your queries.

Having problems with filing taxes is an issue with every other organization. It can be challenging for firms to file taxes without any error. Hundreds of forms Require for filing out and understand the meaning of complex statements. file everything on time, without any mistake can be very tiring for businesses, whether it is big or small.

You can, however, get rid of all the problems mentioned above. And get the maximum savings with profits usually hidden from ordinary people by hiring a professional in the field. If you want to enhance the financial security of your organization, a tax agent is your answer. But first, let us know who a Tax Consultant is?

Professional Tax Consultants, also known as tax advisors, are specialized in formulating tax returns, working with their clients regularly, and helping to minimize any liability related to tax.

They also focus on the laws related to taxation, policies, and compliances. They give regular updates about tax optimizations for small and big businesses.

As well as offering tax advice, tax advisors also offer audit and accounting solutions. It is very important to help their clients to maximize their savings for the organization.

Clients with huge businesses usually face issues like drafting written letters to their clients, developing financial statements, bookkeeping, managing payrolls, registration of other companies, etc.

Therefore, registered tax agents become necessary. As they help to ease the whole process by filing taxation reports by working throughout the year.

Apart From These, Let us Look at Some other Responsibilities of a Tax Consultant:

responsibilities of a tax consultant

1. Accountancy:

A tax agent helps accurately record all the financial debts and credits of the company. A professional tax consultant’s work includes assessing each client’s records and identifying and calculating any critical information related to assets and liabilities in order to provide accurate results.

A tax consultant must pay attention to every numeric detail in all documents and data. Through this, the consultant also gets the opportunity to make valuable tax recommendations to the client.

2. Taxation:


As evident, one of the main responsibilities of a tax consultant is to prepare tax records for the organization at the end of the financial year. They may also aid clients in preparing their tax returns.

They answer any queries that may arise from the client’s side during the process and make them familiar with all the laws and regulations related to the methods of filing taxes.

Tax consultants’ work can be related to checking if the client has filed their tax returns correctly and rectifying the mistakes, or it can be filing tax returns for the clients themselves. Some consultants have expertise only in specific areas, whereas others have generalized knowledge related to all fields.

3. Resolving matters

Tax consultants also aid their clients in dealing with issues related to the addition of tax on rental income, death of a family member or a business partner, divorce, and marriage-related taxation formalities, among many others.

To become effective in resolving matters like these, a tax consultant must have enough knowledge about legal codes, compliances, and rules of the organization and government because policies related to taxation change frequently.

Apart from this, they should also be familiar with the software used for accounting, tax preparation, and financial analysis.

In addition, tax consultants also act as advisors, communicating to public firms or authorities on behalf of the clients whenever necessary.

4. Gathering Information

Gathering Information

Other primary responsibilities of a tax consultant include gathering important information about the client’s allowances, taxable income, and deductible expenses by interviewing them from time to time. They also need to collect data on any increase in the clients’ assets in property, bonds, shares, etc.

This sums up the major work of a tax consultant. But do you know the skills required to do such detailed work? Read on to learn more!

  • Good communication skills are essential for a tax consultant because of the need to share relevant information with the clients and get important information from others. This helps provide good quality consultation to the clients free of unwanted discrepancies.
  • A tax agent needs to be an expert in mathematics and LSI to perform all essential taxation calculations. Complex problem-solving abilities are a must as they will help get effective solutions in no time. Besides this, it will also help make the whole process faster and rectify any calculation errors.
  • Another essential skill for a tax agent has good organizational skills. If you are good at organizing critical documents and information in physical or virtual mode, you can do your work efficiently. This becomes especially necessary when small business accountants handle many clients simultaneously. It will prevent the displacement of any files and will help in saving time as well.
  • A tax consultant should also know how to manage finances effectively to apply their knowledge to different economic and financial situations of the organization.

A tax consultant can prove to be very beneficial for any organization.

  • It saves time as records are double-checked throughout the year, and ensures the taxes are filed correctly.
  • Having an expert for all your tax issues makes it hassle-free to comply with all the legal problems hand in hand.
  • You can not only get the return work done, but you can also gain valuable advice whenever needed.
  • Not filing a tax report before the last date can lead to legal complications. Making it even more essential to have someone at the back regularly working for the same to avoid any legal implications in the future.

The need for a tax agent usually depends on the needs of the business. Nowadays, everyone wants to save every penny. No doubt having a professional for this work saves you a lot of bucks which can be further invested elsewhere. Moreover, the information they provide becomes handy at some point in their lives. This becomes even more crucial when you are planning to expand your business.

Being apparent, expansion requires enormous investments! And for that, you need to have previous savings from your business.

However, one thing that should be kept in mind before hiring a tax accountant in Perth is their experience in the field. Hiring someone for this role is an investment in itself.

You are certainly making a dire mistake if you hire someone low in experience only due to cheaper rates.

Given wrong information related to tax-related issues can cause legal disputes both within the company and between clients and higher authorities. Since it is not just about money but also your hard-earned reputation, an expert in the field should be preferred over others at any time.

You should also look for the services that a particular consultant offers since some experts are better in specific areas than others; you should be mindful of the same while hiring tax agents.

How can you become a tax consultant?

become a tax consultant

Above you have learned what responsibilities of a tax consultant play in their life. Now after that, a question arrives how do you become a tax consultant, right.

So to become a tax accountant in Perth, you should have skills and knowledge related to finance, accounting, economics, and law. You also need to have your registrar number, which will be unique to you, acting as a license for you to practice tax consultancy with small and big firms.

If you want to enhance your knowledge in the field, you can get into diploma courses. You also get the opportunity to become a tax attorney.

Nevertheless, most of the job is usually learned by the consultants on the job itself. It also offers promotional opportunities from a tax clerk to a tax attorney based on your expertise and experience.

Tax consultancy also offers a wide array of job opportunities in different sectors. You can work for a public agency, federal or state government, law firm, or corporate office. It may sound surprising, but you can also work for freelancers. As a professional tax consultant, you also receive a higher salary, making it even better for the professionals.

This part of every organization is necessary because of its need at the start and end of the year. Therefore, the demand for tax consultants in the market is usually high at all times. The important thing is to build trust with the company you work for to gain maximum benefits.

If you use a tax adviser to complete your income tax return you’re not alone. Australians use tax advisers more than any other nation apart from Italy.

This is easier, less stressful, gives you peace of mind, and saves you time.

But does it save you money? Our research says no – unless you’re one of Australia’s wealthiest individuals.

If you’re a typical wage earner, paying a tax adviser is likely to increase your final tax liabilities. even after you claim a tax deduction for the adviser’s fees.

In fact, after analyzing 5 million individual tax returns, over a four-year period, we’ve found tax advisers are more likely to act as “tax exploiters” for wealthy clients than “tax enforcers” for the rest of us.

For clients with an annual taxable income of more than A$180,000, whose financial affairs make tax rules complex or uncertain, tax advisers can help identify ways to save money. But for everyday wage earners, mostly ensure compliance with the tax rules.

Greater benefit for the wealthy:

Our research is the first to explore this topic using the Australian Taxation Office’s ALife dataset. This comprises a randomly selected (and anonymized) sample of 10% of all Australian taxpayers (about 1.4 million observations each year).

Analyzing this data shows professional tax advice is very useful for the very wealthy to reduce their tax liabilities. Plus they get a tax deduction on paying for that advice.

Those on the highest levels of supplementary income – that is, business income, rental income, personal services income, and income from partnerships and trusts – undertake more aggressive tax avoidance than individuals on lower incomes.

The more spent on tax professional services – and thus the higher the deduction – the more likely aggressive tax avoidance behavior.

I hope now you have got a clear image in your mind of what are main duties and responsibilities of a tax consultant in their career.