One of the primary reasons I chose to become a CPA expert instead of an EA was my passion for the diverse aspects of accounting. The scope of practice for CPAs is broad, covering areas like financial accounting, auditing, financial planning, and business consulting. This variety appealed to me, as I was drawn to the idea of handling a wide range of financial matters, not just taxation. The CPA profession offered me the opportunity to delve into different sectors of accounting, each with its unique challenges and rewards. CPAs typically do most of their work for public accounting firms of all sizes. They could be specifically licensed as auditors, financial planners, corporate and executive accountants and tax consultants.
- 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.
- Comparatively, the EA exam questions are more detailed but contain less variety and complexity.
- Certified public accountants do generally have more job opportunities due to the fact that they can work for private individuals, in the private sector, or for the government.
- For this reason, an enrolled agent must also be well organized and capable of meeting reporting and filing deadlines.
- Both CPAs and EAs have comprehensive knowledge of the United States tax codes and can use their knowledge to represent their clients in audits, appeals and other matters with the IRS.
Tax Enrolled Agent vs CPA for Business Taxes
Additionally, the questions on the REG CPA Exam section are harder than those on the EA exam. The REG questions don’t go into as much detail about tax, but they are more varied and complicated, partially because the CPA Exam contains multiple-choice questions and task-based simulations. 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.
For Enrolled Agents: The Special Enrollment Examination (SEE)
- Additionally, the questions on the REG CPA Exam section are harder than those on the EA exam.
- We compare how they differ and where they overlap so that you can feel confident and informed when planning your career.
- 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.
- For EAs, the IRS mandates the completion of 72 hours of continuing education courses every three years.
If all the costs are taken into account for CPA vs EA, for CPA it comes to around $3,000 while for EA it’s about $1,300. If you have worked with the IRS formally, hold technical expertise related to taxation and have ensured ethical conduct, you can become an EA. What is an EA vs CPA When comparing the roles of CPA vs EA, it’s seen that the scope and responsibilities https://www.bookstime.com/ of the CPA are much wider in scope. The EAs are experts in taxation and hence the SEE deals in-depth with tax topics. There are no preconditions to appear for the exam and you can do so as soon as you obtain a Personal Tax Identification Number (PTIN), even if you’re still in college. Each one is printed with your name, account number and bank routing number.
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Working with an adviser may come with potential downsides such as payment of fees (which will reduce returns). There are no guarantees that working with an adviser will yield positive returns. The existence of a fiduciary duty does not prevent the rise of potential enrolled agent salary conflicts of interest. SmartAsset Advisors, LLC (“SmartAsset”), a wholly owned subsidiary of Financial Insight Technology, is registered with the U.S. If you have accounting needs with a micro focus, working with an EA could be the perfect fit for you.
Entry-level salaries for EA agents
So I am not sure if EA is the right choice due to my desire to stay in tax or if CPA is the right choice. I could also do the EA first to have the title and knowledge and then study for and take the CPA exam when it is not tax season. According to Payscale.com, enrolled agents typically make anywhere between $30,000-$75,000 a year, while CPAs make between $40,000-$104,000 annually.