Top 10 Tax Advisor Certifications

Certifications are important for tax advisors because they demonstrate a level of knowledge and expertise that employers look for when hiring. Certified tax advisors have passed exams to prove their understanding of the taxation system and are better equipped to provide accurate advice on tax matters. Additionally, certifications can help tax advisors stand out in the job market by demonstrating their commitment to staying up-to-date on current tax regulations and laws. They also show potential employers that the advisor is reliable and trustworthy. Having a certification can give an applicant an advantage over other candidates who do not, making it an invaluable asset in the job market.

This article reviews some of the top certifications for Tax Advisors and explains how they can benefit a tax advisor's career.

What are Tax Advisor Certifications?

Tax advisor certification is a professional designation that recognizes individuals who have a high level of expertise and experience in tax preparation, planning, and advice. The certification process requires candidates to pass an exam demonstrating their knowledge of the tax code and related topics. Having tax advisor certification can help individuals obtain jobs as a tax advisor or consultant; it can also give clients peace of mind by knowing that the person they are working with is knowledgeable in the field. It may also be beneficial for those who want to specialize in certain areas of taxation, such as estate planning or international taxes, as certifications are available in these specializations. Additionally, having a tax advisor certification may make you eligible for discounts on continuing education courses or other services related to taxes. Ultimately, obtaining a tax advisor certification demonstrates your commitment to staying up-to-date on changes to the tax code and provides you with more credibility when dealing with clients.

Pro Tip: When looking for a tax advisor, make sure that they are certified by a reputable organization such as the American Institute of Certified Public Accountants (AICPA) or the National Association of Tax Professionals (NATP). Certification provides assurance that your tax advisor is up to date on the latest tax laws and regulations and is qualified to provide you with accurate advice.

Related: What does a Tax Advisor do?

Top 10 Tax Advisor Certifications

Here’s our list of the best certifications available to Tax Advisors today.

1. Certified Public Accountant (CPA)

A Certified Public Accountant (CPA) is a professional designation given to individuals who have passed the Uniform CPA Examination and met additional state education and experience requirements for certification as a CPA. CPAs are licensed by their respective state boards of accountancy, which also regulate their practice.

The process of becoming a CPA varies by state, but typically involves completing 150 semester hours of college coursework, passing the four-part Uniform CPA Exam, and meeting work experience requirements. Generally, it takes at least one year to complete all of the necessary steps to become a certified public accountant.

To become a CPA, you must meet the educational and experience requirements set forth by your state board of accountancy. Generally, these include completing 150 semester hours of college coursework with an emphasis on accounting topics; passing the four-part Uniform CPA Exam; and meeting work experience requirements. You can find specific information about your state’s requirements on its board of accountancy website.

The cost to become a CPA varies depending on your location and other factors such as exam fees, review courses, study materials, etc. Generally speaking, you can expect to pay around $2,000-$3,000 in total costs associated with becoming a CPA.

2. Chartered Tax Professional (CTP)

Chartered Tax Professional (CTP) is a professional designation conferred by the Chartered Institute of Taxation (CIOT). It is an internationally recognized qualification that demonstrates expertise in taxation. It is awarded to individuals who have demonstrated a high level of knowledge, skill and experience in tax matters.

The CTP designation requires a minimum of three years’ experience in tax practice or related fields, as well as successful completion of the CIOT’s professional examinations. The exams cover topics such as UK taxation, international taxation, personal taxation and business taxation.

In order to obtain the CTP designation, applicants must complete the CIOT's professional examinations and pass all four parts at first attempt. The exams are held twice per year and can be taken either online or at one of the CIOT's examination centres throughout the UK.

The cost for taking the CTP examination varies depending on which part(s) you are taking and when you take them. Generally speaking, it will cost around £1,000-£2,000 to take all four parts of the exam.

3. Certified Tax Advisor (CTA)

A Certified Tax Advisor (CTA) is a professional designation awarded by the National Association of Tax Professionals (NATP). This certification is designed to recognize individuals who have achieved a high level of tax knowledge and expertise. CTAs are knowledgeable in all aspects of tax preparation, including individual and business taxes, estate planning, and tax law.

It typically takes between one to two years to obtain the CTA designation. To become certified, individuals must first complete an approved course of study that covers topics such as taxation basics, individual income tax returns, business taxes, estate planning, and more. After completing the coursework, applicants must pass a comprehensive exam administered by the NATP.

To get started on the path to becoming a CTA, individuals should contact their local NATP chapter or visit their website for more information on courses and exams. The cost of obtaining the CTA designation varies depending on where you take your courses and how many classes you take. Generally speaking, it can cost anywhere from $1,000 to $2,000 in total fees for the entire process.

4. Accredited Tax Preparer (ATP)

Accredited Tax Preparer (ATP) is a professional designation awarded by the National Association of Tax Professionals (NATP). It is designed to recognize individuals who have demonstrated their knowledge and expertise in tax preparation.

The ATP designation requires applicants to pass an exam that covers topics such as individual and business taxation, ethics, and the Internal Revenue Code. The exam is administered by Prometric Testing Centers and takes approximately four hours to complete.

To be eligible for the ATP designation, applicants must have at least one year of experience in tax preparation or related fields. Applicants must also meet certain educational requirements or demonstrate equivalent knowledge through work experience.

The cost of the ATP exam varies depending on where you take it, but typically ranges from $150-$200 USD. Additionally, there may be a fee for membership with NATP if you choose to join after passing the exam.

5. Certified Financial Planner (CFP)

Certified Financial Planner (CFP) is a professional certification awarded by the Certified Financial Planner Board of Standards, Inc. to individuals who meet certain educational and experience requirements and pass an examination. The CFP certification is the most widely recognized financial planning credential in the world.

The CFP certification process involves completing three steps: education, examination, and experience. To become a CFP, you must first complete a college degree program that meets the CFP Board's education requirements. This includes completing at least 30 semester hours of coursework in financial planning topics such as investments, insurance, taxes, retirement planning, estate planning, and risk management.

Once you have completed your education requirements, you must then pass the comprehensive two-day CFP Certification Examination administered by the CFP Board. The exam consists of two parts: a written portion and a computer-based simulation portion. The exam covers topics such as investment principles; taxation; insurance; retirement planning; estate planning; risk management; and financial plan development and implementation.

The final step in becoming a CFP is to gain at least three years of full-time professional financial planning experience or its equivalent through part-time work or volunteer activities. Once you have met all of these requirements, you will be eligible to apply for your CFP designation from the CFP Board.

The cost to obtain the CFP designation varies depending on where you live and which courses you take to fulfill your education requirement. Generally speaking, it can cost anywhere from $2,000-$10,000 to complete all three steps of the process depending on how much self-study you do versus taking classes from an accredited institution or review course provider.

6. Enrolled Agent (EA)

Enrolled Agent (EA) is a designation issued by the Internal Revenue Service (IRS) to tax professionals who have demonstrated expertise in tax preparation and representation. Enrolled Agents are authorized to represent taxpayers before the IRS for audits, collections, and appeals. To become an Enrolled Agent, applicants must pass a three-part exam administered by the IRS or have worked for the IRS for five years in a position that regularly required them to interpret and apply tax laws.

It typically takes about six months to complete the process of becoming an Enrolled Agent. The first step is to submit an application with the IRS. After submitting your application, you will need to take and pass all three parts of the Special Enrollment Examination (SEE). Once you have passed all three parts of the exam, you will need to submit fingerprints and undergo a background check as part of the application process.

The cost of becoming an Enrolled Agent varies depending on how you choose to prepare for the exam. If you choose to self-study or take online courses, it can cost anywhere from $500-$2,000. If you opt for a live review course or boot camp, it can cost up to $3,000 or more.

7. Accredited Tax Adviser (ATA)

Accredited Tax Adviser (ATA) is an internationally recognised qualification for tax professionals. It is awarded by the Chartered Institute of Taxation (CIOT) and the Association of Taxation Technicians (ATT).

It takes an average of two years to complete the ATA qualification, although this can vary depending on the individual’s experience and background. To become an ATA, candidates must pass a series of examinations covering all aspects of taxation, including income tax, corporation tax, capital gains tax, inheritance tax and value added tax.

To get started with the ATA qualification, applicants must first register with either CIOT or ATT. Once registered, they will receive study materials and guidance on how to prepare for the exams. Candidates will also be able to access online resources such as webinars and practice questions.

The cost of becoming an ATA depends on which route you take. If you choose to take the CIOT route, it will cost £1,500 in total for registration fees and exam fees. If you choose to take the ATT route, it will cost £1,000 in total for registration fees and exam fees.

Once qualified as an ATA, individuals can apply for membership with CIOT or ATT and gain access to a range of benefits such as networking opportunities and specialist advice from experienced professionals within their field.

8. Certified International Tax Advisor (CITA)

Certified International Tax Advisor (CITA) is a professional designation awarded by the International Tax Institute (ITI). The CITA designation is a mark of excellence in international tax planning and compliance. It is designed to recognize the knowledge and experience of individuals who have achieved a high level of expertise in this specialized field.

To become a Certified International Tax Advisor, applicants must meet certain educational requirements, pass an exam administered by ITI, and demonstrate at least three years of relevant experience in international tax planning or compliance. Applicants are also required to submit an application that includes references from current or former employers or colleagues.

The process of obtaining the CITA designation typically takes between four to six months. During this time, applicants must complete their application, take the exam, and provide evidence of their experience in international tax planning or compliance.

The cost for obtaining the CITA designation varies depending on the country where the applicant resides. Generally speaking, it costs around $2,000 to $3,000 USD to become certified as an international tax advisor. This cost includes registration fees for taking the exam as well as any additional materials needed for completion of the application process.

9. Chartered Financial Consultant (ChFC)

Chartered Financial Consultant (ChFC) is a professional designation awarded by The American College of Financial Services. It is designed to recognize individuals who have obtained a comprehensive knowledge of financial planning and the ability to apply that knowledge in a practical setting.

It takes approximately two years to complete the ChFC program, although some students may take longer depending on their individual circumstances. To become certified, students must pass eight exams covering topics such as insurance, investments, retirement planning, estate planning, and taxation. Students must also complete an ethics course and demonstrate three years of full-time experience in the financial services industry.

The cost for the ChFC program varies depending on where you take it and what materials you choose to purchase. Generally speaking, the cost can range from $2,000-$4,000 for tuition and materials. In addition to this cost, there are also fees associated with taking each exam ($125 per exam).

Overall, becoming a Chartered Financial Consultant requires dedication and hard work but can be very rewarding in terms of career advancement opportunities and increased earning potential.

10. Certified Valuation Analyst (CVA)

Certified Valuation Analyst (CVA) is a professional credential awarded by the National Association of Certified Valuators and Analysts (NACVA). It is designed to recognize individuals who have demonstrated expertise in business valuation, financial litigation consulting, and other related areas.

The CVA designation requires an individual to complete a comprehensive training program that covers topics such as business valuation theory, methodology, practice standards, and ethics. The program also includes an examination that tests the candidate’s understanding of these topics. To obtain the CVA designation, candidates must pass the exam with a score of at least 70%.

The NACVA offers two types of CVA programs: self-study and instructor-led. The self-study program takes approximately six months to complete and requires candidates to purchase study materials from the NACVA website. The instructor-led program takes approximately three months to complete and requires candidates to attend classes taught by experienced professionals.

The cost for either type of program varies depending on the materials purchased. In addition, there is a $550 application fee for both programs.

Do You Really Need a Tax Advisor Certificate?

The answer to this question depends on your individual circumstances. If you are a business owner or self-employed, having a tax advisor certificate could be beneficial. This certification indicates that you have an in-depth knowledge of tax laws and can help you accurately prepare your taxes. It also shows potential employers and clients that you have the expertise necessary to handle their financial matters responsibly.

If you are an employee who does not own a business or file self-employment taxes, then having a tax advisor certificate may not be necessary. However, if you do any freelance work that requires filing taxes, then having this certification could be beneficial for both yourself and your clients. It would demonstrate to them that you understand the intricacies of the tax code and can provide them with accurate advice when needed.

In short, having a tax advisor certificate is not always necessary, but it could certainly be beneficial in some situations. It is ultimately up to each individual to determine whether they need such a credential based on their particular financial situation and goals.

Related: Tax Advisor Resume Examples

FAQs About Tax Advisor Certifications

1. What are the requirements to become a tax advisor?

Answer: The requirements for becoming a tax advisor vary by state and jurisdiction, but generally include passing an exam, completing continuing education courses, and having at least two or three years of professional experience in the field.

2. How much does it cost to obtain a tax advisor certification?

Answer: The costs associated with obtaining a tax advisor certification vary depending on the provider, but typically range from $500 to $3,000.

3. How long does it take to get certified as a tax advisor?

Answer: It typically takes between six months and one year to complete all of the necessary steps for obtaining a tax advisor certification.

4. Is a tax advisor certification recognized internationally?

Answer: Yes, most tax advisors who obtain their certifications in the United States can have their credentials recognized in other countries as well.

5. Can I become a certified public accountant (CPA) with only a tax advisor certification?

Answer: No, you must pass the CPA exam in order to become certified as a CPA in most states. However, having a tax advisor certification may help you qualify for certain positions that require knowledge of taxation laws and regulations.