This means that they must complete 30 additional credits after earning their bachelor’s degree, and in most cases, that involves earning a master’s degree in accounting. They will also need to have at least one to two years of work experience under the supervision of a certified public accountant (CPA). In general, CPAs tend to work for public accounting firms, but they also work independently, for large corporations, and in other settings. In addition to passing the SEE, qualified EAs also have ongoing education enrolled agent vs cpa requirements of at least 72 hours of training every three years. An EA also must meet ethical standards set by the US Department of Treasury. This helps ensure the highest standards of practice and ethics are maintained.

• Not only is this reflected in their background, even their credentials limit their scope.
• Normally, the clients of CPAs are businesses requiring both accounting and tax services.
• The enrolled agent vs CPA journey both require relevant work experience, passing an exam and fulfilling continued professional education (CPE) requirements.
• Hence, in a CPA vs Enrolled Agent comparison, both are experienced and knowledgeable professionals.

Enrolled Agent vs. CPA: What’s Best For Your Business?

Their clients are individuals, partnerships, corporations, estates, trusts, and any entities with tax-reporting requirements. 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). Also, as part of their evaluation of your enrollment application, the IRS will conduct a suitability test that includes a review of your personal tax compliance.

• When you’re looking to hire a tax professional, you want someone knowledgeable — someone you can trust to get the job done and keep your personal information secure.
• To understand the difference between an EA and a CPA, it’s helpful to start with the responsibilities and day-to-day work of each.
• We compare how they differ and where they overlap so that you can feel confident and informed when planning your career.
• Anything you may want to know about the process, salary expectations, work expectations, and more can be found in the guides within this collection.
• Some professionals also specialize in certain areas such as real estate, investments, or international taxation.

CPA Costs

And with TurboTax Live Full Service, you can enjoy tailored assistance from a tax expert near you who’s well suited to handle your specific needs. Additionally, if you have broader accounting needs — for instance, your bank requires a reviewed financial statement to comply with loan covenants — then working with a CPA can be beneficial. Our mission is to demystify the exam prep process , one candidate at a time. Comparing IRS Enrolled Agent vs CPA cost of a license, CPA is much higher.

Passing the exam is much easier once you have several years of tax experience. In fact, you can schedule and sit for the exam as soon as you obtain a Personal Tax Identification Number (PTIN), even if you are still in college. Otherwise, the testing window runs from May 1-February 28, and you can take the exam any time within that window. You can take the exam parts hours, days, or months apart, and you can arrange them in any order you like. If you fail an EA exam part, you can take it three more times (a total of four) during the testing window.

All four sections of the exam must be passed within an 18-month period in order to earn a CPA license. If you’re ready to be matched with a Greenback accountant, click the get started button below. For general questions on expat taxes or working with Greenback, contact our Customer Champions. CPA professionals have the flexibility to work in public accounting firms, corporations, government agencies, or as independent consultants.

As for employment situations, jobs for CPAs and EAs usually take place in different environments. They actually have their own clients and can, therefore, work at home with flexible hours. On the other hand, many CPAs start off in audit firms, but as they accumulate experience, they can launch their own practices and acquire their own clients.

When it comes to managing your finances and taxes, choosing the right professional is crucial. Two common types of tax professionals are Certified Public Accountants (CPAs) and Enrolled Agents (EAs). While both can offer valuable services, their qualifications, expertise, and the scope of their work can differ significantly. Understanding these differences can help you make an informed decision about which professional to hire.

As federal tax agents, they have a wide scope of expertise across many areas of taxation. From the perspective of the IRS, CPAs and EAs are on the same level. The EA questions are more in-depth but less varied and complicated, so they are easier. Both enrolled agents and CPAs can supply their clients with superior service. To prove it, let’s start by looking at how enrolled agents add value and then consider the assistance CPAs can provide.

Should I hire an EA or CPA near me?

Unless otherwise stated, each offer is not available in combination with any other TurboTax offers. Certain discount offers may not be valid for mobile in-app purchases and may be available only for a limited period of time. For example, a base flat fee for your tax return, plus additional hourly charges for any extra consultation needed.

Tax Attorneys – The Third Option

Most people who have taken both report that the CPA Exam is more difficult to pass than the EA exam. EAs must be tax experts, so the SEE goes into great depth on tax matters. However, the CPA Exam covers four different subfields of accountancy. EAs work on tax matters only, so they can specialize in certain areas such as tax preparation or tax resolution. Therefore, CPAs who specialize in tax should consider obtaining the EA so they can display their tax expertise.

EA vs. CPA: Which Is Best for You?

Before you do, here’s a checklist of the question you should ask yourself. Understanding these differences can help small business owners or self-employed individuals choose the right professionals for their tax needs. While understanding the differences between a CPA vs an enrolled agent is important, understanding your individual circumstances is also vital. If you can get clear about the nature and extent of your own needs, you’ll be much better placed to make the right decision for you or your business. However, if you need an independent audit of your business’s accounting records, then you will need to hire a CPA.

The EA questions are easier, so most candidates only need a few months to pass the EA exam as opposed to the months typically needed to pass the CPA Exam. In this case, the benefit of the EA exam is that the sooner you can get licensed, the sooner you and your clients can enjoy your improved status with the IRS. In contrast, you must meet educational requirements to take the CPA Exam.

Certified Public Accountants (CPAs) are state-licensed accounting professionals with a broad scope of financial competence. An enrolled agent is a tax professional that provides tax planning, tax advice, and also files tax returns. EAs are qualified to focus on tasks like tax collections, tax audits, and tax appeals. After a candidate has passed the qualifying exam, and a final suitability and background check, the federal government then recognizes them as EA tax professionals. An EA is the highest credential awarded by the IRS for tax professionals.

A CPA might be a better choice if you have a more complex tax situation, like a partnership or corporation with multiple shareholders. Knowing which one to go with will depend on your own personal needs. Chartered Accountants (CAs) are a global designation used in many countries outside the United States, including Canada, the UK, Australia, and India. Although your exact salary will depend on a number of factors, including the state you live in, in general, CPAs tend to have higher salaries. On the other hand, the CPA Exam has four parts and much broader content. The section equivalent to the EA exam is Regulation (REG), and only about 70% of the REG content directly relates to the EA exam.

Tax Enrolled Agent vs CPA for Business Taxes

Both types of professionals are qualified to perform similar tasks. However, it ultimately comes down to the range of services each credential can perform where they differ. Hiring an EA might be the more affordable option because their services are more limited. For instance, an EA may be more cost-effective if a small business owner only needs tax preparation and planning assistance.