Posted on: March 12, 2020 by Huntersure LLC.
Professional tax preparers and accountants help individuals and companies prepare their tax returns on a daily basis. And now that we’re in the thick of this year’s tax season, it’s a perfect time to look at the future of the industry for tax professionals.
Tax preparers are tax-law experts and make it their business to know how to maximize deductions to reduce the total tax that individuals and businesses end up owing every year. And while the market has changed for tax preparers through such things as online filing, the job outlook is still going strong.
Here’s a closer look at the industry.
The IRS processed more than 250.3 million Federal tax returns and supplemental documents in 2018. And even with recent changes, taxpayers still have a few basic avenues to choose when they file. Half of those who filed their taxes went to a certified public accountant, or CPA, or a tax preparation franchise, like H&R Block or Jackson Hewitt. For businesses and professionals with more complicated tax situations, professional tax preparers with more specialized skills were hired out.
But some businesses and organizations with their own complicated tax situations have instead chosen to go the route of tax preparation software, such as TurboTax or H&R Block online. These software programs represent a fast-changing market for the industry and changing the role of a tax preparer. Regardless of this move, tax preparers are still in high demand, just in different ways.
Employment for tax preparers is expected to continue to rise through 2022 by nearly 14 percent, according to ONet Online. The Bureau of Labor Statistics estimates that job growth for accountants in general will continue to grow by 13 percent through the same year. The growth rate is on par with other occupations, offering peace of mind for people who are looking for a stable future within the industry.
The most significant demand for tax preparers is expected to be for those who have professional degrees in accounting. CPA’s will likely have the most opportunities and have higher-paying opportunities. Tax preparers who have certifications specific to their role will also see more job opportunities and steady growth.
However, tax preparers should be prepared to see more of an emphasis on seasonal jobs with a significant demand during tax season, or until the end of April. Tax preparer jobs are expected to grow due to corporate problems, such as filing incorrectly or untoward tax return issues. Business owners don’t want to see a risk around controversial tax issues that might bring reputational problems to their company. For tax professionals looking to protect their own assets and reputation, holding off the possibility for potentially scandalous tax issues, there’s specifically outlined tax preparer insurance that can help provide the right resources when looking to keep everything protected.
Huntersure LLC is a full-service Managing General Agency that has provided insurance program administration for professional liability products to our partners across the United States since 2007. We specialize in providing insurance solutions for businesses of all sizes. Our program features can cover small firms (grossing $2.5 million annually) to large corporations (grossing $25 million annually or more). We make doing business with us easy with our breadth and depth of knowledge of E&O insurance, our proprietary underwriting system that allows for responsive quoting, binding and policy issuance and tailored products to meet the needs of your insureds. Give us a call at (855) 585-6255 to learn more.
Posted in: Tax Preparers