Certified Public Accountant CPA vs Enrolled Agent EA

Date: September 22, 2021
Category: Bookkeeping

ea vs cpa salary

There is no additional cost to you, and it helps us earn money so we can continue to supply you with useful information. In order to become an enrolled agent, you must take the EA exam or have at least 5 years of IRS work experience under your belt. The EA exam, also known as the Special Enrollment Examination , is a 3-part exam. Each section tests your knowledge on all tax-related matters. Becoming an enrolled agent takes much less time than becoming a CPA.

You might even end up as a Chief Financial Officer for a big company. If you’re a budding tax or accounting professional, you may also be unclear on the differences between these two options. If so, it’s important to understand the functions that CPAs and EAs serve, and what the career potential for each role might be. With all of this in mind, we’ve put together this quick guide to answer all of your questions about the difference between a tax CPA and EA.

Tax Preparer Vs. CPA

An ITIN is an identification number issued by the U.S. government for tax reporting only. You are required to meet government requirements to receive your ITIN. By authorizing H&R Block to e-file your tax return, or by taking the completed return to file, you are accepting the return and are obligated to pay all fees when due. Personal state programs are $39.95 each (state e-file available for $19.95).

ea vs cpa salary

For each stage of your Enrolled Agent career, you’ll see an average salary increase of 8.38%. They have their own clients and therefore can work at home with flexible hours. Many CPAs start out in audit firms, but as they accumulate experience, they can launch their own CPA firms and have their own clients. 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.

What to Look for When Seeking the Services of Either a CPA vs. EA vs. PA?

Complete Controller is not affiliated with or endorsed by Intuit Inc. Complete Controller is solely responsible for the provision of all services on or accessed through this website. The following article explains the differences between two of the most commonly confused job titles; Enrolled Agent and CPA. It can get a little confusing with all the accounting acronyms out there. Similarities among various accounting jobs makes distinguishing accounting job titles even more difficult.

Is CPA higher than EA?

An enrolled agent is a tax practitioner who is licensed at the federal level by the Internal Revenue Service. In fact, enrolled agent status is the highest credential awarded by the IRS. On the other hand, certified public accountants are licensed by their applicable state boards of accountancy.

With his help, countless students and professionals have passed certification exams and achieved their dreams. Whether you’re seeking career advancement or educational success, Bryce Welker is the ultimate guide to help you get there. Unlike CPAs, enrolled agents become nationally certified, so they can practice in any state with the same certification. They prepare tax reports, ensure the accuracy of the company’s tax documents, and are responsible for handling any issues.

How to increase your salary as a tax preparer

Typically, the Certified Public Accountants earn more than the Enrolled Agents, but they might vary depending on where they fall on the career continuum. With much experience, an Enrolled Agent could earn more than the Certified Public Accountant who is in their first year in practice. Your income will quickly outpace that of an Enrolled Agent if you are a Certified Public Accountant.

  • EA certification appropriate fee structure is given in the below table.
  • Enrolled Agents are tax professionals licensed by the federal government and can represent taxpayers in front of the Internal Revenue Service .
  • The US CPA certification enforces high professional standards in the accounting field.
  • There is, therefore, a greater demand for the high expertise that comes with a CPA, though micro accounting EA’s also fetch good salaries.

Those specializing in tax preparation may usually assist you with tax and financial planning, accounting demands, and most other financial responsibilities. A great benefit of being an EA is having the ability to work for the IRS or state departments of revenue. This is at the heart of an EAs core duties and responsibilities, and you’ll be guiding people through tax obstacles on a daily basis. Working in government means you’ll likely have better vacation, health, and retirement benefits, as well as increased job security. You may not be paid quite as well as if you worked in the private sector, but you may enjoy knowing you’re working for an entity meant to serve the public. “Earning the EA Designation brought my credentials inline with my professionalism and experience. It is a great talking point with my clients and gave me the confidence to increase my fees.”

Compared to a CPA Salary

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. CPAs are elite accounting professionals that can work in every sector of the profession, from tax to audit to consulting and advisory. ea vs cpa salary CPAs can also work in general business roles and can easily move horizontally or vertically within the structure of a business. CPAs are required to learn about financial accounting and reporting, tax, business law, the business environment, and audit before they can become credentialed.

Why EA is better than CPA?

The primary difference between the two is that the license of an EA is authorized by the federal government, i.e., the Internal Revenue Service (IRS), giving them nationwide authority. The CPA license is issued by any of the 55 U.S. states, restricting a CPA's authority to the state level.