Tax consultants or advisors have been in extensive demand all over India after the introduction of Goods & Services Tax (GST) in the financial market.
Companies and individuals alike require tax consultancy services to navigate their legal and financial obligations through complex and manifold taxation structures implemented in various industries across several sectors.
Since the inclusion of around 9 million companies in the GST regulatory jurisdiction, tax consultants and firms providing such services have experienced the immediate need to incorporate certain industry-specific skills to offer exceptional services to their clients.
Whether the clients are salaried individuals or established enterprises, tax advisors require an extensive range of expertise to provide the best consultancy in matters related to taxation and legal procedures.
What are the effective skills required for tax consultancy?
Tax consultants are fundamentally required to –
- Prepare and file tax reports.
- Research on current tax laws.
- Extend beneficial advice on personal or company tax management.
- Relieve tax liabilities on individuals.
Hence, they have to be equipped with a specific set of skills to offer effective consultancy on taxation.
Chartered accountants, GST and income tax professionals, along with independent tax advisors can benefit from the following skills to provide superior tax consultancy services to their clients –
- Operative communication skills
Professions such as tax consultancy primarily act as a bridge between tax authorities and individuals.
Their clients often belong to non-specialised backgrounds with limited knowledge about taxation intricacies.
Unless the majority of the client base includes established companies and firms, tax consultants need to be effectively communicative so as to simplify the details of the taxation and obligation process to their additional clients.
Tax consultants also have to understand the concerns of their clients so as to extend the standard quality of consultation after taking their financial and legal conditions into account.
- Expertise in numeracy and accounting
To extend functional tax consultancy to clients, tax advisors need to possess a higher degree of expertise in calculation and assessment.
Since tax consultants compute tax liabilities and deductions keeping in mind the financial position of their clients, it is necessary that they are equipped with relevant calculation skills that are likely to give them a competitive advantage.
Tax advisors also have to be actively involved in gathering accounting skills, including industry-specific accounting principles and computation method.
Additionally, CAs have to optimise their client fees with the help of extensive knowledge regarding current financial markets, economic conditions, prevailing tax laws and regulations, and banking services.
- Awareness about tax laws and government regulations
Tax consultancy predominantly deals in the tax codes and regulations laid down by the government of a country.
This requires them to be actively aware of tax laws, financial obligations and deductions under particular tax legislation, and their associated legal procedures in tax courts.
Tax consultants also have to know the areas where their clients have to be tax compliant so as to eliminate legal hazards in the future.
Tax advisers also need to be aware of tax exemption clauses, and government regulations on taxation in the form of executive orders. This helps consultants file their clients’ tax returns accordingly and maintain consistent records of tax receipts.
Additional skills required by consultants to provide best tax consultancy practices include strategic and rational planning, proper resource allocation, and advanced knowledge in modern accounting databases.
Chartered accountants should also provide management consultancy to their clients to widen their scope of service with specific skill sets.
The best consultancy services also require updated software, computer equipment, and trained staff to carry out tax computation under these systems. CAs have the option to avail a Loan for Chartered Accountants of up to Rs.3.5 crore provided by the reputed financial company Bajaj Finserv to finance the steps needed to provide establish a consultancy firm.
CAs, whether independent entities or a part of firms extending tax consultancy services, can benefit from cultivating the skills mentioned above. They can also leverage their skills to make their CA firm stand out from the rest in the consultancy market.