Benjamin Franklin once famously noted that taxes are one of life’s few certainties, and that holds true both for individuals and businesses today. Companies invest considerable resources in navigating complex tax laws and regulations, and many businesses hire professionals with expertise in tax law to help manage these financial hurdles.
Studying to become a tax manager can be a path to an in-demand career with high earning potential. Because employers often prioritize candidates with advanced education and certifications in tax law and finance, earning a degree such as a Master of Science (MS) in Taxation is a key step for professionals aspiring to work in this field.
Tax Manager Job Description
Tax managers are experts in tax accounting who apply their knowledge and skills to help companies navigate local, state, and federal tax laws. These professionals prepare corporate tax returns and financial reports, ensuring that there are no inaccuracies or other issues that could put the company at legal risk. They may also play a role in creating internal policies to help the company prevent tax fraud and comply with other tax regulations.
Tax managers may work for public or private firms that serve different clients or as in-house employees at larger organizations. They may hold leadership positions that involve overseeing teams of accountants. As tax laws change regularly, tax managers must invest in continuing education to ensure that their knowledge is up to date.
How to Become a Tax Manager
Tax managers are experts in tax accounting who apply their knowledge and skills to help companies navigate local, state, and federal tax laws. These professionals prepare corporate tax returns and financial reports, ensuring that there are no inaccuracies or other issues that could put the company at legal risk. They may also play a role in creating internal policies to help the company prevent tax fraud and comply with other tax regulations.
Tax managers may work for public or private firms that serve different clients or as in-house employees at larger organizations. They may hold leadership positions that involve overseeing teams of accountants. As tax laws change regularly, tax managers must invest in continuing education to ensure that their knowledge is up to date.
How to Become a Tax Manager
Aspiring tax managers should plan to develop a solid foundation in tax law education and a strong set of financial skills. Gaining practical work experience can also be advantageous, helping candidates position themselves for senior roles and better salary potential. Here are some key steps in the path to becoming a tax manager.
Gain and Education
A bachelor’s degree in accounting or a related field is typically the minimum requirement to work as a tax manager. However, because tax managers often hold senior-level positions, many companies prefer candidates with master’s degrees or other advanced credentials. An MS in Taxation, for example, can help students gain specialized knowledge that prepares them to handle the high-level responsibilities that come with the role.
Earn a Certification
In addition to educational requirements, many companies require tax manager candidates to hold a certified public accountant (CPA) certification, which demonstrates proficiency in financial advising and tax preparation. All states require 150 credit hours for CPA eligibility, but traditional bachelor’s programs cover only 120 credit hours. Earning a graduate degree can be an effective way to meet this requirement while continuing your education.
Additional credentials, such as certified management accountant (CMA) or chartered financial analyst (CFA), can also help professionals distinguish themselves to employers.
Build Work Experience
The level of experience needed for a tax manager position varies by employer, but due to the role’s advanced responsibilities, companies often prefer candidates who have several years of relevant experience. As an intermediate step, working as a CPA or tax accountant can offer opportunities to sharpen the fundamental skills needed to pursue a career as a tax manager.
Develop Key Skills
Successful tax managers have diverse skill sets that include a blend of legal expertise, technical knowledge, and soft skills. Key skill areas for tax managers include the following:
- Tax law
- Financial analysis
- Tax software
- Project management
- Communication
- Problem-solving
- Leadership
Tax Manager Salary and Job Outlook
The U.S. Bureau of Labor Statistics (BLS) reported in 2023 that the median annual salary for financial manager roles, including tax managers, was $156,100. This is significantly higher than the median annual salary of $48,060 for all U.S. occupations, indicating strong earning potential for experienced professionals in the field. However, tax manager salaries can vary based on factors such as experience, location, and industry.
The job outlook for tax managers is also favorable, with the BLS projecting a 17% increase in jobs for financial managers between 2023 and 2033, compared with an expected growth rate of just 4% across all careers. This trend reflects the growing importance of financial risk management, as tax managers play a crucial role in helping businesses avoid costly errors in an increasingly complex regulatory environment.
Take Charge of Your Future Career
Bryant University’s MS in Taxation Online program offers an advanced education in financial advising, the complexities of tax law, and other critical areas for tax management professionals.
With its flexible schedule and asynchronous course format, the program allows students to achieve their educational goals while remaining working professionals. It also satisfies the 150-hour requirement for CPA licensure, preparing students to pursue tax manager positions upon graduation.
Discover how Bryant’s comprehensive education in taxation can elevate your career.