Train for Work in the New Economy: Tax Advice vs Tax Preparation

What is the difference between a tax preparer or practitioner and a tax specialist? In a word: advice. The tax preparation industry is in the midst of an enormous transformation, and new entrants must educate toward that change. But, why is that and what does that really mean?

In this article, the first of a four-part series, Knowledge Bureau founder Evelyn Jacks explains how the tax and financial services industry is evolving with a new economy.

Advice matters when clients are looking for expertise at critical financial moments. Technology is also shaping industry expectations.

Technology has taken over much of the data entry work an entire tax preparation and financial services industry used to do. Soon, much of a client’s tax filing data from banks, employers and government will “self-populate” into tax returns. In addition, financial transactions between bankers, suppliers and clients will become increasingly seamless, resulting in end-to-end electronic documentation.

The traditional tax preparer can add little value in this scenario; however, a highly qualified tax specialist can offer so much: advice tailored to client-centric financial goals—before, during and after the annual tax filing event—and collaboration with other financial professionals.

The work tax specialists do. Tax specialists provide both tax preparation services and tax advisory services and to do so, have expanded their professional education to hone knowledge and skills to offer a full range of tax planning and reporting to fulfill the needs of a broad variety of client profiles:

• Individuals, including credit filers
• Families, including couples who are married, common law, separated or divorced
• Seniors, including those in pre- or post-retirement, and those who may be sick or disabled
• Investors, spanning the unique needs of both beginners and high-net-worth clients, often in the same family
• Business owners (both proprietors and incorporated family businesses), an increasing area of growth in a “gig economy”
• Final returns, returns for rights or things, and trust returns, another big growth area in an aging demographic
• And finally, those with cross-border concerns, including snowbirds, immigrants and online services.

Tax specialists have experience working with all of the taxpayer profiles and outcomes outlined above, some of which can involve complex situations, strategies and planning.

A pre-requisite: a commitment to continuing education. Tax preparers and practitioners who go on to become tax specialists make it their professional responsibility to stay current on new tax laws and strategies available. Top tax analysts and researchers, they invest time to become experts at deciphering how new tax laws affect their clients’ income and investments.

Done well, the advanced work of the tax specialist now gives them a multi-faceted role: they make it their business to be the connector to significant networks of financial professionals and other specialists they can draw on for expertise and support, if required, to get the best long-term results for their clients.

Collaboration with other professionals. In their multi-faceted role, they work closely with the family and their financial advisors during tax season and throughout the year, to ensure financial decision-making includes tax analysis that supports accumulating, growing, preserving and sustaining income and wealth. At Knowledge Bureau, we call this the discipline of Real Wealth Management™.

Evelyn Jacks is Canada’s most trusted educator in the tax and financial services. Founder and President of Knowledge Bureau, she developed the Real Wealth Management discipline and is the author of 53 books.

Additional educational resources:

Start on the path to evolving your career today. A free trial of Elements of Real Wealth Management is available. This year’s CE Summit events can also help you scale up your technical knowledge and improve your positioning as a true tax specialist, ready to advise any kind of client.

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