Tax planning is fundamental to businesses in two key ways. First, a successful plan helps ensure that a company remains compliant with tax laws and regulations as they change from year to year. Second, the right plan helps financial professionals spot ways to minimize taxes and contribute to the company’s overall growth strategies and profitability.
However, the complexities of taxation can make planning risky, as even the smallest mistake or oversight can lead to significant penalties.
This is why a tax director plays such an essential role in a company’s financial planning efforts. Tax directors use their expertise to help companies develop strategies that ensure compliance and drive financial efficiency, ultimately contributing to the company's success. For those interested in pursuing an advanced taxation degree, it’s important to understand what a tax director does and why their work is so important.
What Is a Tax Director?
Tax directors oversee a company’s tax obligations. These executives focus primarily on the intricacies of business taxes and how they impact their company’s operations and economic efficiency.
The role of tax directors is twofold. Their expertise in tax law allows them to ensure their company is compliant with changes in federal, state, and local tax codes or obligations. Additionally, they also work with executive-level management to devise ways to reduce the company’s tax burden without circumventing regulations.
Ultimately, their goal is to help the company operate with the highest possible level of legal financial efficiency.
Tax Director Duties and Work Environments
Several of a tax director’s duties involve tending to a company’s tax obligations. These tasks can include the following:
- Preparing and filing taxes
- Overseeing the company’s legal compliance as laws change
- Ensuring the accuracy of the company’s tax returns
- Advising company executives on the tax ramifications of strategic initiatives
- Facilitating the company’s growth or stability, such as through new tax laws or potential tax breaks in new markets
- Working with the company’s accounting team to generate business results and forecasts
Tax directors are employed in a few different types of work settings. Some are hired directly by a company, while others work as part of an accounting or consulting firm. Some work for government agencies and nonprofit groups. Because taxes affect all industries, tax directors work in a number of different sectors.
Steps to Become a Tax Director
The typical requirements for tax directors are a master’s degree in accounting or a field related to accounting or finance and a certified public accountant (CPA) license.
Most states require applicants to undertake 150 course hours before they can sit for the CPA exam, and most undergraduate programs take 120 course hours to complete. This essentially makes earning a master’s degree or completing an undergraduate CPA preparation program necessary. However, there is much more to be gained from earning a graduate degree than checking a box.
A Master of Science in Taxation program helps individuals develop the deep expertise and leadership qualities that are essential for success in the tax director position. The program can also help individuals further develop other core competencies, such as strong analytical and strategic thinking skills.
After earning a degree and CPA licensure, professionals need to gain several years of experience in an accounting or taxation career before pursuing a tax director role. This provides hands-on training in real-world situations to help them develop expertise in the field.
Tax Director Salary and Job Outlook
The median annual tax director salary was approximately $162,000 as of July 2024, according to Payscale. Several factors can affect an individual’s salary, including their education, years of experience, industry type, and location.
The U.S. Bureau of Labor Statistics (BLS) projects 4% job growth for accountants and auditors between 2022 and 2032, indicating this is a steady, stable field. Businesses will always need high-level tax professionals who can navigate the ever-changing waters of business taxation.
Take a Step Toward a Bright Future
The work of a tax director can mean the difference between an organization with solid tax reporting and one that’s mired in tax errors and penalties, which can affect its growth and profitability.
The Master of Science in Taxation program from the Tseng College at California State University, Northridge, can help prepare you to pursue this critical role. Our award-winning master’s program immerses working professionals in an interactive, experience-driven environment where they can develop expertise while still having the flexibility to maintain their current career obligations, particularly during busy tax seasons.
The program’s cohort format allows you to optimize your interactions with faculty and encourages networking relationships with other tax professionals, which can contribute to your future career growth. And, with the opportunity to choose between a traditional in-person classroom experience and a virtual option, CSUN’s program helps you further your education on your own terms.
Find out how CSUN can prepare you to succeed at the highest level.
Sources
- Becker, “150 Credit Hours CPA: A Tale of Courses and Creative Counting”
- Business.com, “Why Small Business Owners Should Think About Taxes Year-Round”
- Fora Financial, “Avoid These Seven Common Business Tax Mistakes”
- Indeed, “What Does a Tax Director Do? (With Salary and Skills)”
- Jooble, Tax Director Job Description
- Payscale, Average Tax Director Salary
- U.S. Bureau of Labor Statistics, Accountants and Auditors
- Zippia, What Degree Do You Need to Be a Tax Director?
