Six Key Tax Manager Skills for 2024

Without question, tax managers play an integral role in making sure companies comply with tax laws and regulations, while also augmenting the organization’s tax position.  It is not an easy role.

Whether you are looking to hire a new manager, or attempting to become an ideal candidate yourself, here are six important hard and soft skills that will set top tax managers apart in 2024.

1.     CPA OR Enrolled Agent License

While perhaps more of a credential than skill, if you are a Certified Public Accountant (“CPA”) or enrolled agent, you demonstrate to your company and those you work with that you possess a wide range of critical financial reporting and tax skills. Not to mention, enrolled agents are licensed by the IRS to represent taxpayers before the IRS – a qualification that makes employers more comfortable should the need ever arise to respond to an audit or IRS investigation.

Just about every top firm or company requires their tax managers be a CPA or possess their enrolled agent license. So, if you are looking to be a stand-out tax manager, you should strongly consider doing the work to obtain these designations.

2.     Tax Code Mastery and Legislative Interpretation

Perhaps the most important skill for any tax manager is to have an intimate understanding of the tax code. The ever-changing federal and state tax codes are incredibly voluminous, not to mention, written in complicated verbiage not easy to understand.

Strong tax managers must not only know the laws regarding taxes at local, national and international levels, but they must also be able to interpret and discern the complicated nature in which tax laws and regulations are written.

3.     Effective Articulation and Interpersonal Skills

Albert Einstein is credited with the phrase: “If you can't explain it to a six-year-old, you do not understand it yourself.”  The principle of the phrase is self-evident.  If you cannot explain it simply to others, you do not really understand it.

While a tax manager may have a grasp on tax laws and creative solutions to optimize the company’s tax position, it will not do the organization any good if the tax manager cannot explain to the decision makers what needs to be done and why.  Top-notch tax managers have strong interpersonal skills and the arcane ability to articulate the work they are doing and the proposed solutions to those they work for.

4.     Tax Software Proficiency

There are many tools and available software to help tax professionals do their job – from financial reporting to data analysis.  But these tools are not all built the same and even the best ones are only as good as the people using them.

A savvy tax manager will not only know which tax software is best suited for the job, but also, how to use that tax software and how to train others to use it.

5.     Data Analytics and Big Data Usage

Data analytics is driving innovation in nearly every sector of every industry.  And tax preparation is no different. Tax managers can improve their decision making and reporting by relying on the power of data analytics and big data.  For example, tax managers can use data analytics to analyze historical financial and tax data to identify trends and opportunities for tax planning.  Another practical tax use for big data tools is identifying irregularities and potential fraud in financial transactions.

6.     Time Management and Resilience

If you ask any tax professional what they think about tax season, you will likely hear of late nights and headaches.  Workloads can quickly skyrocket during tax season.  And so, tax managers must be able to effectively manage their voluminous workloads and meet very strict deadlines, all while producing high-quality work.  And while this is a skill useful in any professional, it is especially important for tax managers, because poor time management can lead to missed deadlines – which can have significant legal consequences.

If you are a tax manager looking to separate yourself from others, be sure your time management skills are top-notch.

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