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Choosing Between a Tax Specialist and Tax Manager for your Business

As tax season approaches, your business needs to employ the right talent to ensure you are prepared. Any staffing effort likely involves deciding between hiring a tax specialist, tax manager, or even both. These financial professionals help with the preparation of your returns and even plot longer-term tax strategies.

With the goal of hiring the right financial professional, let’s examine the differences between tax specialists and tax managers. Use these insights to ensure your business is prepared for tax season, even including the possibility of an audit. In the end, a profitable business depends on employing the right tax experts.

Examining the Tax Specialist Role

When compared to a tax manager, tax specialists serve in a more junior-level role. In fact, they may even report to a tax manager at larger organizations. These financial professionals typically prepare and file business tax returns. As such, they need a full understanding of local, state, and federal tax regulations. They also handle all communication and correspondence with the IRS and any local revenue services.

Most tax specialists possess a bachelor’s degree in accounting or finance. Many open positions for this role require at least 1-3 years of experience, while some consider entry-level financial professionals. Expect to pay an annual salary of around $57,000 or an hourly rate from $25-30. Hiring a tax specialist especially makes sense for any growing small business.

Exploring the Tax Manager Position

Tax managers boast a higher level of experience and as a result, have more responsibilities compared to tax specialists. They serve in more of a managerial role and might even have accountants and tax specialists as direct reports.

Similar to a lone tax specialist, tax managers also handle a business’s local, state, and federal tax returns. However, they typically work for larger businesses, making this effort more complex, and requiring someone with a higher experience level. Tax managers also provide long-term strategic tax planning services for their employers.

These senior financial professionals command annual salaries of around $100,000 on average. They have a similar educational background as a tax specialist, while many are also CPAs. Aim for tax managers with around 8-10 years of experience to find the best hire for your organization.

What’s the Best Tax Professional Option for My Business?

As noted earlier, most smaller businesses probably benefit from hiring a tax specialist. As the company grows, consider hiring a tax manager either in a supervisory role or to replace the specialist. Finally, a growing organization might consider transitioning their tax specialist into a manager role as they gain experience. Connect with the experts at Synerfac for additional advice.

When your company needs financial professionals, contact the team at Synerfac. As one of the top staffing agencies in the country, we provide exceptional candidates to keep your books in order. Schedule a meeting with us to discuss your hiring plans.

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