A tax preparation certification is a credential usually issued by a reputable institution in the field of tax services. Certifications are used to ensure that those practicing as tax preparers have the necessary knowledge to effectively complete tax returns for individuals, corporations, and other tax-paying groups. Knowledge of the field is typically demonstrated by passing a test given by a certification body.
A tax preparation certification can help your career by giving you a credential that is recognized by those in the field. It could help your tax preparation practice by instilling confidence in clients with your ability to provide quality tax services.
Getting the Skills and Knowledge
To obtain a certification in tax preparation, you may need to take preparatory courses to ensure you’re prepared to pass the certification exam. Additionally, the certification agency may have requirements relating to relevant professional experience and education. Courses may cover topics such as understanding and applying the tax code and filling out tax returns for individuals and institutions.
In recent years, the number of tax preparation firms in the U.S. has risen, according to the Bureau of Labor Statistics. As well, competition for tax services jobs has increased. If you wish to gain employment in a tax preparation firm, a credential in tax preparation may help distinguish you from your peers. While a tax preparation certification cannot guarantee a job or increase in pay, it can demonstrate that you’ve achieved a level of knowledge and experience recognized by a reputable institution in the tax preparation field.