Enrolled Agent vs CPA: Important Differences You Need to Know

Consider visiting with a financial advisor before speaking with a CPA or EA, so you know exactly where you stand at the onset. Finding a qualified financial advisor doesn’t have to be hard.

If you are an Enrolled Agent certification holder, you specialize in tax issues like preparing taxes for business entities and individuals. Whereas the Certified Public Accountant has even more advantages, the CPA certification holder could work for both public and private sectors. The jobs for CPAs include tax specialist, CFO, auditor, and controller.

Enrolled Agent vs CPA: Which is Better?

Also, it is important to have done a relevant accounting and business course. After passing all four sections, you qualify to become a CPA. A wide range of roles and handsome salaries are offered based on your experience and skills.

The cost of each section of the exam is about $110 and there is an enrollment fee, which together brings the cost of the process to a little more than $400. There is also a continuing education component that entails taking 72 credits every three years. Finally, once you pass the EA exam and are ready to become an enrolled agent, you’ll have to pay the IRS $67 to complete the enrollment process. CPAs are federally approved to represent you in all matters before the IRS. Those that specialize in tax preparation can also typically help you with tax and financial planning, accounting needs, and most other financial tasks that you might have. Look to a CPA to identify the credits and deductions you qualify for to increase your tax refund and help lower your tax bill. There are strict professional ethics that must be upheld by CPA vs. EA vs. PA.

EA vs CPA: Comparing the Requirements, Salaries, and Careers of Enrolled Agents and CPAs

If you pursue the enrolled agent designation via the EA exam, you don’t have to meet an experience requirement. You’ll receive your exam results immediately, and once you’ve passed, you can apply for enrollment. The IRS explains that processing your application may take as long as 60 days ( days if you’re a former IRS employee).

• Candidates who apply for enrollment must pass a suitability check, including a tax compliance check and background check.
• He was very professional with great communication, always answering my questions and concerns.
• The jobs for CPAs include tax specialist, CFO, auditor, and controller.
• You must then pass that section and any other unpassed sections within 18 months of the time you passed your second section.
• For accountants who really want to focus on tax issues, the EA is the way to go.
• The EA exam has three parts, and most people find the first and third parts to be the easiest because some experienced tax professionals can pass these parts with minimal studying.

In today’s post, we’ll break down the roles, responsibilities, and capabilities of an enrolled agent vs. a CPA to help you determine what’s right for your organization. If you like accounting work with a microfocus, becoming an EA could be a perfect fit for you. On the other hand, if you are interested in accounting practices that have nothing to do with taxes , then the CPA option is the obvious path. If you are a CPA, then there is no need to become an EA since the CPA is equally qualified to perform the tax preparation duties of the EA.

Comparing EAs and CPAs

The revenue authorities perceive enrolled agents as tax experts above the Certified Public Accountants. CPAs are often the go-to choice https://www.wave-accounting.net/ for anyone with a complex tax situation. A CPA is not only qualified to prepare your taxes but also advise on other financial matters.

An enrolled agent and a certified public accountant are both tax experts, but when you should work with an EA vs CPA differs based on your needs. The part that covers taxation is reporting and regulation, giving a certified public accountant the ability to write audited financial statements which a regular accountant cannot.

Comply with ethical standards established by the Department of Treasury. In just 5 minutes, we’ll get to know you and the kind of help you’re looking for. Details regarding the student loan forgiveness plan, including potential tax consequences and how California may respond to the payment. Tax incentives for purchasing clean vehicles and installing high efficiency home improvements are some of the featured provisions in the recently-passed Inflation Reduction Act . While not necessarily the right move for everyone, closing or opening a business before year end has some advantages. The statements and opinions are the expression of the author, not LegalZoom, and have not been evaluated by LegalZoom for accuracy, completeness, or changes in the law.

We help you navigate the process easily and take surprises out of the game for federal, state, and local filings. Typically, the Certified Public Accountants earn more than the Enrolled Agents, but they might vary depending on where they fall on the career continuum.

CPA vs EA: Salary Differences

Both EA and CPA certification indicates a competent professional. Which is more appropriate for a business depends on the unique needs of each company. State licensing boards issue and regulate the CPA designation according to their own rules, but many requirements exist in most or all states. I am the author of How to Pass The CPA Exam and the publisher of this and several accounting Enrolled Agent Vs Cpa professional exam prep sites. This chart presents the totals for the Enrolled Agent exam and the CPA Exam costs. Keep in mind these are minimum costs – they don’t take retakes or more expensive prep materials into account. FINRA/SIPC. Advisory services offered through Cetera Investment Advisers LLC. Cetera entities are under separate ownership from any other named entity.

Manage your business assets – All businesses, no matter how large or small, will have assets. Needless to say, as a business owner it is in your best interest to protect these assets and keep them safe. Experience – More often than not, you’ll find that Enrolled Agents have firsthand experience of working with the IRS. This is very useful because this specialized knowledge can be utilized by them, for their clients. Obviously, this can vary, but generally you’ll find that CPAs do the majority of their work for various public accounting firms in Los Angeles, or other cities nationwide.