Enrolled Agent vs CPA- Choosing the Best for Your Career

Like EAs, CPAs are also subject to ongoing educational requirements, as well as a code of ethics to ensure professional standards. Schedule your free consultation now and see why we’re California’s most trusted tax firm since 1971. Another main distinction, and potential downside is that CPAs can only work in the state(s) in which they are licensed. Increase your desired income on your desired schedule by using Taxfyle’s platform to pick up tax filing, consultation, and bookkeeping jobs.

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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. While there could be exceptions to the rule, CPA licensure generally has a much higher barrier of entry than the enrolled agent credential.

This broad expertise enables CPAs to offer comprehensive services that address a wide range of financial issues, making them invaluable to both individuals and businesses. Additionally, EAs are adept at preparing tax returns and ensuring compliance with tax laws. Their specialized knowledge allows them to address intricate tax-related issues effectively, positioning them as key players in the realm of tax professionals. Enrolled Agents offer a wide range of services tailored to meet the diverse needs of their clients. Their primary responsibilities include tax planning, preparation, and providing expert tax advice.

Whether you want an expert to do your taxes from start to finish, or expert help while you file on your own, TurboTax has expert-backed offerings to meet your needs. With TurboTax Live Assisted, our tax experts help you complete your taxes, fix any mistakes, and explain what’s next. Or, with TurboTax Live Full Service, a local tax expert matched to your unique situation will get your taxes done 100% right – as soon as today.

CPA vs. EA: What’s the difference, and which one do you need?

• They assist clients in resolving tax-related issues, negotiating settlements, and establishing installment agreements when facing tax debts.
• CPAs are also state-licensed, while an EA is a federal designation licensed directly by the IRS.
• This examination ensures that only those with a deep understanding of tax laws and regulations earn the EA designation, including knowledge of tax return processes.
• Other factors, such as the EA or CPA’s level of experience, will also impact the amount you pay.
• EAs offer guidance in estate planning and help navigate complex tax matters related to trusts and estates.
• In addition to passing the SEE, qualified EAs also have ongoing education requirements of at least 72 hours of training every three years.

The choice between them will depend on your personal needs and preferences. You can find an EA enrolled agent vs cpa near you by using the National Association of Enrolled Agents directory, or a CPA near you by using the AICPA Find-A-CPA directory. EAs pass a comprehensive three-part Special Enrollment Examination (SEE) covering individual and business tax matters, ethics, and representation.

Professional Specialties

• In addition to academic qualifications, aspiring CPAs must acquire 1-2 years of relevant professional work experience in accounting.
• CPAs possess broad expertise not limited to taxation but across various financial aspects.
• So, before you pick an EA or CPA, check out these common questions people have about hiring these two types of tax professionals.
• With TurboTax Live Assisted, our tax experts help you complete your taxes, fix any mistakes, and explain what’s next.
• Like EAs, CPAs are also subject to ongoing educational requirements, as well as a code of ethics to ensure professional standards.
• 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.

Similarly, if you’re looking for business or individual financial planning, a CPA tends to be a better choice than an EA. EAs are also qualified to provide professional tax advice, tax return filing, and management of a whole host of taxes including income, payroll, estate, retirement taxes, and more. A CPA, or Certified Public Accountant, is a professional designation that allows the professional to deal with many different aspects of financial services, primarily financial audit services. CPAs look deeply into the financial equation, evaluate numbers, create projections and try to provide an overall picture, forecast, and recommendations based on internal and historical data. Enrolled Agents are regulated by the IRS, which ensures their proficiency in managing tax-related issues on a federal level. This federal oversight allows EAs to represent taxpayers across all jurisdictions in the United States.

What is an EA vs CPA?

If you’re primarily interested in tax-related matters, becoming an EA might be suitable. Pursuing a CPA could be more beneficial for a broader career in accounting, finance, or business. Both designations offer rewarding career paths with distinct focuses and opportunities. A CPA must also comply with the ethical and professional standards of the AICPA, the state board of accountancy, and other regulatory bodies. They must follow the AICPA Code of Professional Conduct, which outlines the principles and rules of behavior that CPAs must adhere to in their practice. A CPA must also complete continuing professional education (CPE) courses every year to maintain their license and keep up with the changes in the accounting profession.

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But if you’re a business owner, have investments, multiple income streams, or simply want more comprehensive financial advice, a CPA is the better choice. They’re qualified to provide a wide range of accounting services, like financial planning, audits, and business consulting. They’re often the go-to for individuals and businesses with more complex financial needs. For example, you are taking the services of a CPA to manage your accounts and financial services.

Representation and Advocacy Before Tax Authorities

Yes, both EAs and CPAs can represent clients before the IRS, but EAs have unlimited representation rights nationwide, while CPAs are restricted to the states in which they are licensed. Ensure the tax professional has relevant experience with situations similar to yours and is familiar with local tax regulations. Checking their fee structure and included services can also help you make an informed decision. When it comes to tax representation and resolving tax problems, both Enrolled Agents (EAs) and Certified Public Accountants (CPAs) play crucial roles. However, their approaches and areas of expertise can differ significantly, impacting how they address tax-related issues. CPAs are regulated by individual state boards, meaning their licensing requirements can vary significantly from state to state.