Multinational corporations don’t often get the luxury of only having to deal with one tax jurisdiction. As a result, transfer pricing consultants often do find themselves working on some complex portfolios. And if you’re just getting started in this field, it can be easy to second-guess every tax calculation, as making confident recommendations to clients can be a little overwhelming when you’re constantly having to reference different international tax legislation across your reporting.
On top of that, this industry itself can also be a challenge to navigate for beginners. Many clients will only work with seasoned professionals, so when you’re starting, it can seem like a Catch-22. You need clients to have experience, but you need experience to get clients. Even if you’re working with a multinational consulting firm yourself, it’s a lot easier to build trust with your clients if you have the experience to back up your authority in communications with them.
So how can you hone your experience? Equipping yourself with the right skills and knowledge is the strongest way to set yourself up for success in this field. Here’s what you’ll need to complete your toolkit as a proficient transfer pricing consultant.
A Relevant Education
The first step to becoming a transfer pricing consultant is to attain the right academic qualifications. Qualifications like a Master of Accounting or even a Master of Business Administration for instance, can give you a strong foundation in how large businesses operate, alongside equipping you with all the right pedagogical contexts to position you for leadership roles further along in your career.
While a business degree is the most directly relevant to a career in transfer pricing, there are other fields of study that can help as well. For example, studying international law will give you a deeper understanding of how different legal systems operate, which you’ll need when working with clients with offices across multiple countries. Likewise, a degree in economics will equip you with a macro-level understanding of how markets function and how they influence pricing at the level of businesses.
Thankfully, a quality education is now more accessible than ever. You can study on campus or even secure a degree in business management and accounting or another relevant field fully remote via online study. Just note that if you choose to study a more general business degree, you should try to take as many accounting and business finance courses as possible, as these will be most relevant in your career as a transfer pricing consultant.
Additional Certifications
Alongside getting your degree, there are other certifications you can take to further your skills and help you stand out from the crowd. For example, you can become a CPA to boost your accounting and financial reporting skills, both of which you’ll need when helping businesses with asset valuation.
Some other certifications you can consider include a CFA, CTA, CMA and LLM in International Taxation. A qualification in law or taxation is particularly valuable, since you’ll be dealing with different legal and tax systems as a transfer pricing consultant.
If you want to further differentiate yourself, certifications in fields like foreign languages or data analytics are also options to consider. Keep racking up educational credentials throughout your career as a transfer pricing consultant, and you’ll be well on your way to securing big-ticket clients.
Relevant Work Experience
As with any consulting career, previous experience is crucial if you want to be a successful transfer pricing consultant. Even though you won't be applying for jobs in the traditional way, businesses will be much more likely to be interested in your services if you have a proven track record. This is especially true given the fact that most companies that require the services of a transfer pricing consultant are typically big multinationals, meaning they're likely to have a comprehensive screening process.
In this day and age, work experience can come in many forms. While many transfer pricing consultants see working in a Big Four firm as the ultimate work experience, it's not the only way to build your skills as a transfer pricing consultant. Working in an in-house accounting role for a smaller company or even helping businesses with taxation on a freelance basis are also valuable experiences to have on your resume. The most important thing is to be able to show potential clients a solid track record of relevant work and a proven ability to get results.
Technical and Analytical Skills
Transfer pricing isn’t just rules and regulations. You’ll also have to understand business structures, conduct plenty of market research, and identify pricing mismatches or unjustified costs that could lead to client losses.
You don’t need to be a SQL expert but getting used to SQL, ERP systems, or TP software will come in handy. These skills are typically developed as part of working through real-life scenarios such as preparing a report on your client’s intercompany pricing arrangements or benchmarking pricing for products sold in various countries.
The more you practice understanding numbers and drawing conclusions, the easier it will be for you to start advising multinational companies.
Networking and Keeping Current
Networking is closely related to keeping current on transfer pricing issues. The opportunities presented by referrals or contacts are the most convenient when looking for work. You can meet many people at workshops or webinars and find a real person to chat with at even the smallest sessions.
If you want to develop a specialised network, you may want to explore joining an industry association or a group like the International Fiscal Association or state CPA societies. Staying up to date on new tax laws, new OECD guidance, and interesting case law can help you feel like you are in the loop.
Many people find that reading the latest guidance can help clients and colleagues see you as informed and knowledgeable. Many consultants have found that networking is the most important thing to pair with a continued learning process in order to build trust and credibility.
Professional Communication Skills
Lastly, as with any consulting job, excellent communication skills are a must in order to succeed as a transfer pricing consultant. In order to secure work in the first place, you often need to attend networking events and trade fairs to meet potential clients. Building a strong online presence and a reputation as a thought leader also doesn't hurt. Then, you'll probably also need to make a formal pitch to your clients before they take you on as a consultant, especially if these clients are bigger businesses.
Once you've landed work, your communication skills will be vital to ensuring that there are no mishaps in the transfer pricing process and that all developments are appropriately communicated to your clients. You'll be doing plenty of regular catch-ups, ad hoc meetings and formal reporting, so make sure to polish your ability to converse and deliver information.
Mastering the Skills That Matter in Transfer Pricing
Transfer pricing is an extremely specialised field of accounting, which means that your skills and qualifications need to be on point if you want to succeed in a consulting role. The qualifications you'll need, like a relevant degree and plenty of work experience, are similar to what you'll need in other jobs, but the exact forms that these qualifications take are markedly different.
Start ticking them off your list today, and you'll be well on your way to building a fruitful career in transfer pricing.
