Keep in mind these are minimum costs – they don’t take retakes or more expensive prep materials into account. The CPA Exam enrolled agent vs cpa has four parts, and the exam content is much, much broader. (Plus, the exam has now has CPA Discipline sections, too.) The CPA Exam section equivalent to the EA exam is Regulation (REG). Only around 70% of the REG material relates directly to the EA exam, while the rest covers other topics such as business law. For more information on the exams, check out our free EA Exam Guide and our CPA Exam Guide. Ultimately, the decision comes down to a person’s financial goals and the complexity of their tax situation.

While many accountants will take the steps to earn their CPA designation, it’s important to note that not every accountant is a CPA. Someone may earn an accounting degree, work in the accounting industry, and refer to themselves as an accountant, but that does not mean they have earned the CPA credential. When it comes to managing your taxes, having the right support is crucial. To help you make an informed decision, we’ve put together a quick summary of the differences between these two roles. It’s also worth noting that there are differences between a Chartered Accountant (CA) and a Certified Public Accountant (CPA). While both designations represent highly qualified accounting professionals, key differences exist between them primarily concerning location and agent specialization.

EAs have to pass a licensing exam, and upon licensing, they’ll be recognized as an EA by the federal government. Once you click “continue,” you will be brought to a third-party website. Please be aware, the privacy policy may differ on the third-party website.

CPA vs EA: What does Reddit Have to Say?

• They may specialize in specific areas like business valuation or forensic accounting.
• They are authorized to represent taxpayers in audits, appeals, and collections.
• However, as your taxes become more complex or sophisticated, a CPA might be more suitable.
• So, CPAs could assist in all accounting, tax and financial services for the businesses, individuals and other organizations they may represent.

According to salary.com, enrolled agent salaries typically range between $44,657 and $62,255 a year. In general, CPAs earn more than EAs, and CPAs also benefit from increased earning potential as time goes on. However, enrolled agents have the opportunity to earn extra money during tax season. I have a reader who actually makes more during those few months than he usually earns for the year in retail. However, comparing the taxation section of REG to that of the EA exam reveals quite a lot of overlap. In fact, this shared content can help candidates pass both exams in time.

The flexibility of this license means that CPAs can perform multiple important roles when they’re employed by a business, from accounting, auditing, financial planning, and tax consultation. They can also provide these services to individual or business clients. Enrolled Agents are generally free to provide these tax services to any tax-paying individuals or businesses they wish to represent. Instead, they are licensed by the IRS, and they play an important role in representing taxpayers before the IRS. The profession is long established, having first been created in 1884 following fraudulent Civil War-era tax claims.

Tax tools

If you’re worried you might make a mistake on your taxes, you’ll probably want to hire a tax professional. Getting your taxes wrong, especially as a small business owner, can lead to fines and penalties you might not recover from. Many individuals and businesses during tax season seek professional assistance to navigate the often complex tax code. However, with various credentials and titles floating around, deciding who to turn to can be confusing.

Meetings and phone calls can be scheduled without having to worry about traveling far or time zone differences. The primary difference between an EA and CPA is that EAs specialize in taxation, and CPAs can specialize in taxation and typically have a broader knowledge of accounting and taxation. So, if you’re thinking of hiring an EA or CPA, which one will fit your needs the best? Each of the exam’s four sections costs about $200, depending on the state. There is also a continuing education component, but the exact number of credit hours varies by state.

What are the Additional Advantages of Using an EA?

You must then pass that section and any other unpassed sections within 18 months of the time you passed your second section. With such regulated deadlines, relying on a CPA review course and studying consistently are essential for CPA Exam success. 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. Conversely, almost everyone must work hard to pass the second part–Businesses– so it’s naturally considered the hardest.

• In addition to passing the SEE, qualified EAs also have ongoing education requirements of at least 72 hours of training every three years.
• Your timing and location can impact the cost of tax preparation, too.
• CPAs cover a wide range of accounting services, including tax, auditing, financial reporting, and business tax consulting.

Education:

While CPAs can handle many of the same tax-related tasks as an EA, they also possess expertise in other areas of finance and business. Certified public accountants (CPAs) are licensed accountants who have completed specific education requirements and passed the CPA exam. CPAs offer a range of financial services, including accounting, auditing, and tax preparation. They can advise and represent clients on additional financial matters not related to taxes. A certified public accountant is a licensed accounting professional who meets the education, experience, and examination requirements set by the state’s Board of Accountancy.

Adtalem Global Education is not responsible for the security, contents and accuracy of any information provided on the third-party website. Note that the website may still be a third-party website even the format is similar to the Becker.com website. But how does the Enrolled Agent (EA) role stack up against being a CPA? We compare how they differ and where they overlap so that you can feel confident and informed when planning your career. All features, services, support, prices, offers, terms and conditions are subject to change without notice. Other factors, such as the EA or CPA’s level of experience, will also impact the amount you pay.

Hopefully, this post should have helped you get to the root of the various CPA vs EA issues. Go for EA if your passion is taxation and representing clients before the IRS to resolve issues. On the other hand, as a CPA, you’ll have a broader outlook on the various aspects of the accounting and finance field. Once you have several years of experience in taxation, it’s much easier to pass the exam. EAs also provide tax advice and file returns for individuals, corporations, partnerships, trusts, estates, and any other entities that have to report taxes.

This time period begins as soon as you pass your first exam section. At that point, you have 30 months to pass the remaining three sections. Accordingly, you must then pass that section and any other un-passed sections within 30 months of the time you passed your second section. With such tight deadlines, relying on a CPA review course and faithfully adhering to a consistent study schedule is even more critical for achieving CPA Exam success. You need to know the answer when you’re contemplating whether to earn the enrolled agent (EA) designation or the Certified Public Accountant (CPA) certification.

An EA may be more helpful than a CPA in regard to very specific taxation problems, however in general it is hard to compare the two. A CPA has a much wider scope of professional financial services compared to an EA. The most important point is to find a tax professional experienced with your specific concern. This means that the CPA is a more broad professional title compared to an EA. A CPA, for example, could work as an auditor, or provide financial management services to businesses and individuals.