You're undoubtedly considering your next step if you recently completed or are soon to complete your Bachelor of Commerce (B.Com) in Accounts and Taxation. Although there are many job options in the financial and accounting fields, becoming a tax consultant stands out for its growth and potential.
Although you may be familiar with the word, what does a tax consultant actually perform, and is this the best option for you? Let's take a clear look at this so you may decide on your post-B.Com. job with knowledge.
The Issue: Choosing the Correct Career Following a B.Com.
For B.Com grads, deciding where to go next is a typical difficulty. Even though you've studied a lot about accounting, taxation, and finance, turning that knowledge into a job might be daunting. Junior accountant positions, which can be monotonous and provide little opportunity for professional advancement, are common among graduates. In addition, there may be competition for jobs. You desire a job that fully utilises your abilities, provides stability, and allows you to advance. So what role does a tax consultant play in all of this?
The annoyance: Not knowing what's available
It's simple to get sucked into accepting the first job you come across after graduating. A lot of B.Com. graduates begin their careers as bookkeepers or accountants. These occupations are perfectly acceptable, but if you're searching for something more exciting and stimulating, they may feel restrictive. However, some recent graduates may be reluctant to pursue a career in tax consulting because they believe it will be too challenging or necessitate years of further education. The thought of committing an error might be frightening due to the complexity of tax regulations. The problem is that you already have a solid base to build on if you studied accounting and taxation for your B.Com. Businesses and people are constantly searching for professionals who
can guide them through the complicated world of taxes, and there is a significant need for tax advisors.
The Answer: The Case for Thinking About Becoming a Tax Consultant
Let's dissect it now. What is the role of a tax consultant, and why is it a viable career path?
What Is the Work of a Tax Consultant?
A tax consultant is a person who assists both people and corporations with tax management. This may entail a range of duties:
Tax planning involves assisting customers in making prudent financial choices to lower their tax liability. Giving them advice on investments or spending that might reduce their tax liability, for instance.
Tax Filing: Getting clients' tax returns ready and filed while making sure they abide by all tax regulations and stay out of trouble.
Tax audits: Helping clients during tax authorities' audits, ensuring their taxes are in order, and defending them in the event of a disagreement.
Keeping Up with Tax Laws: Tax laws are subject to frequent change. A large part of your work as a tax consultant is keeping up with these changes and providing customers with appropriate advice.
Resolving Tax Disputes: Clients may occasionally have disagreements with tax officials. Tax experts intervene on behalf of their customers and assist in resolving these problems.
Why Is a Career in Tax Consulting a Great Option?
Strong Demand Everyone needs to deal with taxes, and they're getting more complicated. Both individuals and businesses require assistance in comprehending how to remain compliant with new regulations, such as the Goods and Services Tax (GST) that was recently implemented in India, or modifications to income tax laws. Tax consultants can help with that.
High Earning Potential: Tax advisors have the potential to make a good living. A tax consultant in India usually makes between ₹4,00,000 and ₹10,00,000 a year, based on their clientele and level of experience. Professionals that focus on corporate taxes or serve wealthy clients have the potential to make considerably more money.
Flexibility: Tax consultants frequently have greater freedom over their schedules than employees in many other financial positions. A lot of tax advisors operate on their own, either by founding their own business or doing freelance work. This might provide you the freedom to schedule your own hours and work with a range of clients.
Room for Growth: As you have more expertise, you can focus on particular taxation areas such as corporate tax, GST, or international tax, which can result in greater fees and more esteemed clients. The work remains engaging since there is never a stop to learning.
What Qualifications Are Required to Work as a Tax Consultant?
Although you don't have to be an expert in taxes to begin started, the following abilities are necessary if you want to be successful in this field:
Understanding of Tax Laws: Your B.Com. degree has given you a solid foundation in accounting and taxation. Building on this, you'll need to be current on all tax rules and regulations.
Analytical Proficiency: Tax consultants work with a large amount of data and numbers. To succeed in this position, one must be able to evaluate financial data and identify legal strategies for lowering a client's tax liability.
Communication Skills: You must be able to clearly and concisely explain complicated tax regulations to your clients. You may ensure that your clients are aware of all the details of their taxes and establish trust with them by having effective communication skills.
Ethical Integrity: You will be working with sensitive financial data as a tax consultant. It's critical to uphold confidentiality and behave in your clients' best interests at all times.
Tech Skills: Having a good working knowledge of technology is a bonus because the job involves using financial planning tools and filing taxes.
How to Begin a Tax Consulting Career
Here's a straightforward route to take if tax consulting is something you're thinking about:
Education: You have a good foundation thanks to your B.Com. in Accounting and Taxation. You may wish to pursue further tax consultation courses or certifications, such as a direct or indirect tax diploma or certification, in order to work as a tax consultant.
Acquire Experience: Real-world exposure is essential. To gain practical experience with tax preparation and filing, you could begin by working as an intern at an accounting firm or as a tax consultant.
Create a Network: In this industry, networking is crucial. To meet possible clients or employers, you can network on LinkedIn, go to industry events, or join professional organisations.
Keep Up to Date: Since tax rules change regularly, it's critical to keep up to date by reading tax journals, going to webinars, and taking part in continuing education courses.
Real-World Example: Raj's Transition from B.Com. Graduate to Tax Advisor
Let's examine a real-world illustration. In 2016, Raj Mehra earned his B.Com. in taxation and accounting. He accepted a position as a junior accountant at a small company, like many recent grads, but quickly came to the conclusion that the monotonous nature of the work wasn't for him. He desired to focus on a more difficult speciality. Raj made the decision to look at tax consulting. After completing a tax certification course, he began providing small firms and individuals with freelance tax services. His standing increased with time, and he started drawing in larger clientele.
After establishing a strong clientele by 2020, Raj made the decision to launch his own tax advisory business. He now works with companies on tax planning and GST compliance, providing a stable income and the independence that comes with owning his own company. A combination of education, practical experience, and a willingness to take chances and forge his own path in the taxes industry contributed to Raj's success.
Conclusion
Consider pursuing a career as a tax consultant if you're searching for a dynamic, financially lucrative, and growth-oriented employment. Your B.Com. in Accounting and Taxation gives you the foundational information you need to begin going. As companies and people continue to manage complicated tax regulations, there is a rising need for tax advisors, and there are many opportunities to establish a prosperous career in this area. There is room for both professional and personal development in tax consulting, regardless of whether you want to work for yourself or for a company.