Tax Advisor vs Accountant: What’s the Difference?

Like most industries, the financial sector has many acronyms, job titles and different industry sectors that can confuse business owners. One such example is the difference between a tax advisor and an accountant, who, if you didn’t know anything about the industry, you would assume, do the same job. After all, accountancy is all about tax, right? In part, yes, but the differences between a tax advisor and an accountant go much deeper than that, and one can help you better than the other with certain aspects of business finance and tax laws. In this RJF Accounting blog, we will explore the core differences between the two and which tasks of your business finances you may need to hire one or the other for.

What Does an Accountant Do?

Accountancy is as broad a field as it is complex, and to become a certified or chartered accountant, there are many fields in which you need to be proficient and have passed exams. Accountants can also choose to specialise in a particular area of accountancy, such as contractor accounting, limited company accounting and then industry-specific accounting, such as finance or retail. 

In general, an accountant will be able to help you with the following:

• Day-to-day accounting of your business.
•  Completing and filing tax returns.
•  Offer general tax advice.
•  Prepare and maintain critical financial reports.
•  Conduct forecasting and risk analysis assessments.
•  Ensure that your business accounts comply with the law. 

What Does a Tax Advisor Do?

We mentioned earlier in this blog that some accountants choose to specialise in one area or become more profound experts in one area of accounting. One such type of accountant is a specialist tax advisor. A tax advisor will have a deeper and more expansive knowledge of tax and its workings in the UK and abroad. 

Due to their specialist training and interest, a tax advisors can offer much more in-depth tax advice to business owners and will be qualified to address complex tax issues with VAT, corporation tax, personal tax and any other form of tax payable or tax allowances available. 

Do I Need an Accountant or Tax Advisor?

The good news is that accountants and tax advisors can help with your business’s basic day-to-day accounting, but they will have more specialist knowledge in different sectors. There are exceptions to the rule, of course, and why some accountants become specialist tax advisors is that when your tax affairs may not be as simple as what an accountant can help you with, this is when you need to hire a tax advisor. Equally, if you have a more complex accounting query – an accountant is the hire you need! 

Most accounting firms have a broad range of accountants on their team, so the good news is that if you hire the right accounting team – they will have both an accountant and a tax advisor ready to help you, or if they do not, they will usually be able to put you in touch with a trusted one they work with. 

How Can RJF Accounting Help?

RJF Accounting has accounting teams based in Manchester and Macclesfield, ready to help you with all your accounting and tax advice needs. We provide services in bookkeeping, accounting, investor relations, cashflow management and much more! 

If you want to know more about how we can help you speak to the team today about our services. You can call the team on 0161 5040629 or email us at hello@rjf.uk.com to see if we can help you get your plans off the ground! We are open Monday to Friday, 9 am – 5 pm!