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Tax Accountants

History

Thousands of years ago early accounting systems consisted of written records for trades of goods and monies spent and received. The Roman military were responsible for maintaining business transaction records. In the 14th and 15th centuries, European mathematicians developed a double-entry bookkeeping system that recorded both debit and credit transactions. The accounting profession took hold in the United States in the 1880s, as European investors started to buy stock in American companies. They sent their accountants to the states to monitor their investments and once established, many started their own accounting businesses.

Tax accounting began when federal legislation for corporate taxes and individual taxes was passed in the early 1900s in the United States. There were no standards at that time for how to file tax reports correctly and businesses needed accountants to help them comply with tax laws. In the 1930s, the Securities and Exchange Commission (SEC) was established to regulate accounting and investing practices and financial statement reviews. The Financial Accounting Standards Board, founded in 1973, also established financial accounting and reporting standards for public and private companies and not-for-profit organizations.

Today, the top firms for accounting and auditing, including tax accounting, are Deloitte, PricewaterhouseCoopers, Ernst & Young, and KPMG. Corporations and individuals continue to need tax accountants to help them file tax returns that are accurate and on time. Tax accountants are also needed to monitor tax laws and standards and advise clients of changes that can affect their tax liabilities.

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