Although they both fulfill distinct financial needs, an accountant and a tax advisor are definitely not the same.
That also means you’ll have to choose one of them, based on your situation. Things get even more confusing when you think about tax advisors versus tax consultants.
But you’ll make the right choice if you understand the key differences. Here’s how to see the distinctions between an accountant, a tax advisor, and a tax consultant.
What Function Does An Accountant Provide?
One of the most varied positions in the finance sector is the accountant. Accountants are capable of doing everything from providing routine bookkeeping services to becoming virtual financial directors.
They can offer advice on many finance-related subjects and keep up with niches within the industry. Accountants come in a variety of forms, but they often play the following roles:
- Giving guidance on accounting procedures
- Generating and interpreting financial statements and accounts for a business
- Tax preparation for localities like Brampton and Mississauga
- Helping businesses create company budgets and cost-cutting initiatives
- Establishing an accounting system for new businesses
- Evaluating financial health and performance, as well as operational data
These are only some aspects that the typical accountant must be competent with; they must demonstrate their abilities and effectiveness in broad, standard subjects within finance.
Now you see why an accountant’s know-how will never match the in-depth expertise of a tax specialist like an advisor.
What Exactly Is A Tax Advisor For?
Typically, tax advisors begin their careers as accountants. They eventually advance to earning professional tax credentials and honing their unique taxation wisdom and talents. They receive specialized training in corporate taxation and personal business taxation.
For example, a tax advisor may have comprehensive knowledge of how VAT works on domestic and international transactions for Canadian franchise owners. It is unfeasible for an accountant to have a deep understanding of the in-depth tax rules of such a unique situation. But the right tax advisor would know.
This level of specialty is best suited to providing complex tax assistance to business owners with complex organizational structures.
Tax Advisor Vs. Tax Consultant: Is There A Difference?
Yes, but not much. Tax advisors and tax consultants are both financial experts who offer suggestions on how to reduce taxes while adhering to legal and regulatory requirements.
Although advisors and consultants have the capacity to do accounting and bookkeeping, their real expertise is financial planning, investment strategy, and tax law.
Advisors often assist individuals in filing their taxes, and will focus on building long-term professional relationships with clients. In contrast, consultants help businesses, usually on a limited-time basis, which requires a flair for project management.
They also take a different approach to problems: Strategic foresight versus operational updates. To learn more, watch:
Should You Seek Out A Tax Advisor, Consultant, Or An Accountant?
The type of support you need will determine the best way to respond. In general, stick with accountants if you are the owner of a new business. Along with providing advice on tax planning and compliance, which are essentially what you need at this level, an accountant can assist you with nearly every financial facet of your company.
Having a tax advisor on your side will be more beneficial if your tax matters are intricate. At that level, you stand to save more money on taxes, and complying with the law can get genuinely tricky unless you have the help of a tax advisor.
Some consumers make the wise decision to choose a company that provides both tax advisors and accountants because they can access both specialties under one roof.
Where To Find Both Types Of Tax Experts
If you’re looking for an accountant that boosts your general financial success — or a tax expert that specializes in your exact situation, contact us today.
We have a full team of staff, equipped with professional certifications like Chief Financial Officer, Chartered Personal Accountant, and Master of Business Administration.
Industry experience is crucial too. When you book a free consultation call with us, we’ll listen to your situation and position in the market. Then, you can hear our experience and get a road map to achieve your goals.
