EA vs CPA: What’s the Difference Between These Tax Pros?

On the other hand, the range for an Enrolled Agent starts from $32k and goes up to $82k. This includes base salary, bonus, profit sharing, and commission. Both the EA and the CPA credentials come with a strict code of ethics and professional standards. However, the EA license is regulated at the federal level while the CPA is at the state level.

EA vs CPA: Which Accounting Certification Is Best for You?

EAs and CPAs can both be tax experts, and the work they do is often similar, but there are some differences between an EA vs CPA. To understand the difference between an EA and a CPA, you should start with the responsibilities and day-to-day work of each. 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. If you remember, the EA exam includes 3 parts, whereas the CPA Exam features 4 sections.

Tax Preparer CPA vs Enrolled Agent – FAQ

In fact, some experienced tax professionals can pass these parts without much studying. Otherwise, the testing window runs from May 1-February 28, and you can take the exam any time within that window. You can enrolled agent salary 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.

• Candidates who have trouble passing REG can shift their focus to passing the EA exam and earning the EA designation.
• I’ve been told it’s rarely an issue to get a reciprocal license other than you might have to take a different ethics exam.
• Get unlimited advice, an expert final review and your maximum refund, guaranteed.
• Jobs paying $61,500 or less are in the 25th or less percentile range, while jobs paying more than $88,000 are in the 75th or more percentile range.
• Like EAs, they can also open their own practices to handle their own clients.

Which EA Review Course Is Right for You?

• Once EAs have passed their qualifying exam, the federal government recognizes them as tax specialists.
• The Certified Public Accountant license is a state-level credential offered by each State Board of Accountancy.
• In other words, a CPA is the go-to if you’re looking for a broad scope of expertise.
• The Enrolled Agent credential is a nationally recognized certification offered by the IRS for tax professionals.
• Because of this, most EA candidates take and pass the exam within a few months.

In contrast, you must meet educational requirements to take the CPA Exam. Yes, this requirement is equivalent to a bachelor’s degree, and many state boards also prefer you have your degree in accounting. Department of Treasury to represent all taxpayers before the IRS. Their sole focus is being the go-to expert on tax laws to help clients navigate their cases with the IRS, like, for example, settling tax debt. Each of the exam’s four sections costs about $200, depending on the state.

EA or CPA: Which Will You Choose?

• An EA who starts their own business may have a higher earning potential than the average EA or CPA salary.
• Enrolled agents are more specialized than CPAs, as their professional skills center on taxes for individuals and businesses.
• If you’re considering a career focused on assisting clients with tax-related issues, you may be weighing your options between enrolled agent vs CPA.
• In terms of job prospects, both professions are expected to experience strong growth over the next decade.
• Whichever plan you choose, you’ll get you taxes done with 100% accuracy and your maximum refund, guaranteed.
• This EA exam testing window lasts from May 1 to February 28 of the following year.

CPAs are best for broader accounting needs and identifying credits and deductions to increase your tax refund or lower your tax bill. If you have a more complex business environment or need extensive accounting services beyond taxes, a CPA is your go-to professional. CPAs can offer a holistic approach to your business and personal financial needs, from tax planning https://www.bookstime.com/articles/trust-accounting-for-lawyers to strategic financial planning. As demand increases for tax advice due to changes in the tax law, the demand for EAs is also going to increase. An EA who starts their own business may have a higher earning potential than the average EA or CPA salary. However, if you want to focus on accounting issues beyond tax, the CPA may be the best choice for you.

Enrolled Agent vs. CPA: Which Path Will You Take?

CPA vs EA – Which Certification Should You Pursue?