The Opportunities are Hot in Tax and Financial Services

Evelyn Jacks

It’s hot times in the tax and financial services industries, as the upward trend in both wages and job opportunities that started last year continue to increase, according to Statistics Canada. If you’re looking for new team members to scale up your business, you might be surprised to find how much you could have to pay to secure talent, and which sectors will have the hardest time landing them.

The Growth in the Labor Market.  In March, 2023, nineteen thousand more people were working in finance, insurance, real estate, rental and leasing. Year-over-year employment grew 4/3% or by 58,000 people.

The Wages.  If you are looking to get into the tax, accounting and financial services, growth-oriented practices are hiring tax return preparers, accounting clerks, investment dealers and brokers in the midst of a tight labor market, which is experiencing labor shortages of 11.5% and 13.4% respectively, according to the Government of Canada’s Job Bank. Currently there is a shortage of 8,200 accountants and financial auditors, 6,600 tax return preparers and accounting clerks and 5,400 investment advisors, investment dealers and brokers  and financial planners.

Drilling down further, year-over-year, wages grew in Canada to an average hourly wage of $33.12, or $66,240 annualized, with very little change between men and women. But for tax preparers and bookkeepers, the median wage is between $23 and $25  ($44,252 – $48,100)  an hour; for investment dealers and brokers, it’s $44.00 ($84,656), but can go much higher.

People seeking to work in the tax and financial services have similar soft skillsets, but their jobs have different technical requirements.  A synopsis follows:

The Soft Skills.  To be successful in working with clients in the marketplace today you have to be prepared to put the client first, showing first and foremost the skills to listen actively to their needs, translate them into viable solutions for the short and long term and explain outcomes effectively, all the while managing follow up opportunities. Your  work experience will include exposure to a variety of communication opportunities, unique client services, information handling and analysis, all in secure and confidential digital, phone, email and in-person environments. 

The Technical Skills - Tax Accounting Services Specialists.  These specialists can be both employed or self-employed in the marketplace.  In their work, they will generally participate in review the monthly and/or annual financial statements and documentation required to back up communication required for a healthy relationship with the Canada Revenue Agency, the CRA.  This requires a strong knowledge of tax and financial terms and literacy, and the ability to manage documentation in both digital and paper systems, as required for: 

• Asset Management.  Record acquisitions and dispositions of fixed assets and calculate depreciation and capital cost allowances, recapture and terminal losses.
• Accounting Systems Management.  Keeping of financial records in accounting software, including the creation, use and improvement on a company’s chart of accounts is a critical function.  While a bookkeeper may be trained to maintain accounts, general ledgers, financial statements, post journal entries, and prepare other statistical, financial and accounting reports on supporting worksheets, the tax accountant must read and interpret the information for tax purposes.
• Hard and Soft Copy Files. Maintain hard and soft copies of documentation in electronic and hard copy files including any legal contracts, client records and accounts receivables, supplier records and accounts payable for tax audit purposes. 
• Payroll. Calculate and prepare payroll, remittances, T Slips and employee files and all reconciliations with CRA records.
• GST/HST and Provincial Sales Tax Remittances.  Income is analyzed for GST/HST remittance requirements; and expenditures are reviewed for the claiming of input tax credits that offset the federal sales taxes collected.  Provincial sales taxes may be required in provinces in which there is no harmonization with the federal tax system.
• Banking.  Reconciliation of bank accounts with entries in computer software is critical, together with reconciliations of all transactions that pass through third party service providers like credit card companies.
• Financial Statement preparation and analysis.Trial balances are reviewed and reconciled and resulting balance sheets and profit and loss statements analyzed to ensure banking records are correctly reflected   
• Prepare tax returns.  This includes income tax returns for the business and the family, according to numerous annual changes in both the lifecycle of the individuals in the family and the tax laws announced by the federal and provincial governments.  This is a discipline onto itself that requires a commitment to continuing professional development, which Knowledge Bureau makes possible with updating courses and its weekly Knowledge Bureau Report.

Financial Planners and Investment Advisors.  These professionals can be employed with banks, trust companies and investment firms or be independents who are self-employed in their own financial planning and investment solutions practices.  They will primarily assist their clients with

• Financial Planning.  This includes goal-setting, investment solutions, debt and cash flow management, tax-efficient investment, retirement, business succession and estate planning, and the implementation for those plans.
• Financial analysis.  Ongoing results analysis, the evolution of financial plans and recommendations for risk management
• Oversight based on regulatory requirements.  The ability to follow rules and regulations in relation to the stewardship of their clients’ resources entrusted to them.
• Excellent product knowledge.The ability to decipher the complexities of investment and insurance products and how they fit with the clients’ goals and objectives and risk management strategies.
• Excellent tax knowledge.  As clients’ wealth grows, an exemplary understanding of the various structures of portfolios, and personal, business and trust affairs within the family is a critical component of the work that is done in collaboration with other specialists engaged in the holistic solutions provided to the client, their family and their community.

Bottom line:  there are tremendously rewarding opportunities for those interested in joining the work of tax, bookkeeping, accounting and financial professionals.  Enquire about getting started with Knowledge Bureau.