CPAs have a broader knowledge base in all facets of accounting while EAs only focus on tax. Not only is this reflected in their background, even their credentials limit their scope. CPAs are granted unlimited representation rights to assist clients in tax-related matters as well as with audits, risk assessment, business valuation and financial planning. However, CPAs are only allowed to practice in the state where their current license is held except for states that accept CPA mobility for limited practice. To become a CPA, candidates must pass a four-part exam and comply with education and experience requirements. The exam is the same from state to state, but every state has its own education and experience requirements.

After you pass the CPA Exam, you will probably also have to take the ethics exam, which usually costs $130. Finally, you must pay the CPA licensing fees, the mid-range of which comes to about $150. And yes, there are also a few other CPA Exam fees you’ll need to budget for, depending on your situation and testing track record. Generally speaking, EAs tend to charge lower fees compared to CPAs, particularly for routine tax preparation and consultation.

What is a Certified Public Accountant (CPA)?

CPAs are qualified to offer a range of accounting, tax, and business services to individuals, businesses, and organizations. Our enrolled agents are tax professionals who have demonstrated technical competence in the field of taxation.They are authorized by the U.S. Department of the Treasury to represent taxpayers before all administrative levels of the Internal Revenue Service for audits, collections, and appeals. Enrolled Agents advise, represent and prepare tax returns for individuals, partnerships, corporations, estates, trusts and any entities with tax-reporting requirements. They are the only federally licensed tax practitioners who specialize in taxation and have unlimited rights to represent taxpayers before the IRS.

For accountants

Two of the most common options are Enrolled Agents (EAs) and Certified Public Accountants (CPAs), who offer tax expertise, but hold distinct strengths and cater to different needs. The EA credential is more focused on serving clients than the CPA credential. EAs and CPAs are highly knowledgeable and experienced professionals who must adhere to strict ethical standards.

On the other hand, for the CPA exam, four different subfields of accountancy have to be covered and hence more study materials have to be absorbed by the candidates. The EAs are experts in taxation and hence the SEE deals in-depth with tax topics. The CPA exam has four parts and overall, it’s much broader in scope than the EA exam.

• Comparing IRS Enrolled Agent vs CPA cost of a license, CPA is much higher.
• Generally, applicants have to have completed at least 150 credit hours of coursework as part of their education.
• Certified Public Accountants (CPAs) are state-licensed accounting professionals with a broad scope of financial competence.
• There’s also a registration fee for each section of the exam each time you take it.
• Let’s start by comparing and contrasting the work responsibilities of each credential.

Unlike CPAs, EAs can’t certify financial statements and provide public accounting outside of tax, which limits their ability to work in a broader capacity. EAs are federally authorized tax practitioners who can represent taxpayers before the IRS on a wide variety of tax matters, including collections, IRS audits, and tax appeals. They generally have no limits on who they can represent, and they can appear before any IRS office. There are three sections to the exam, which cover individuals, businesses and representation and practices and procedures.

How to hire an EA or CPA

As mentioned above, because of the flexibility of the CPA designation, these professionals can be involved in many different types of financial work. 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. At Greenback Expat Tax Services, we have a full team of IRS enrolled agents and CPAs. Our accountants are equipped to give Americans around the world the tax support they need. No matter what type of financial advice you’re looking for, we can help.

• Explore the key differences between a CPA vs. an EA, including their qualifications and areas of expertise.
• After a candidate has passed the qualifying exam, and a final suitability and background check, the federal government then recognizes them as EA tax professionals.
• A financial advisor can help you maximize the tax efficiency of your investments.
• Yes, experience and specialization matter when hiring an EA or CPA.
• Tax professionals, like doctors and attorneys, have many specialized acronyms and designations.

What is an EA vs CPA?

Specific requirements differ based on the country or governing body but generally involve a university accounting degree, professional exams, and practical experience. CAs typically lean towards auditing and tax matters, with expertise in financial reporting and business strategy. When deciding between EAs and CPAs, it’s important to consider the primary differences in their services to clients. EAs primarily focus on tax matters, while CPAs offer a wider range of financial services. They are licensed on a federal level to represent clients before the IRS for tax issues, while CPAs are state-licensed. Additionally, EAs may be more cost-effective for basic tax filing, while CPAs’ comprehensive financial services might command higher fees.

To take the enrolled agent exam, you must pay a testing fee for each exam part. The exam has three parts, and the testing fee is $267, which comes to a total of $801. To pass the exam, you’ll also need to purchase an enrolled agent course that provides study materials covering the exam content. The most popular EA course, Gleim EA Review, costs between $699 and $799, depending on your course package. However, you still must pass all four parts of the CPA Exam within a rolling 30-month period.

Aside from connecting you with a CPA, we will provide you and your CPA with timely and accurate answers to payroll questions. You’ll be assigned the same client success manager and never reach a voicemail within business hours. With the information you now have, you can choose a tax professional for your business.

Normally, the clients of CPAs are businesses requiring both accounting and tax services. CPAs are state-licensed professionals who provide accounting, tax, financial planning, and consulting services to individuals, businesses, and other organizations. As with EAs, a licensed CPA is also authorized to represent clients before the IRS. CPAs typically do most of their work for public accounting firms of all sizes.

You must pass all four parts of the CPA Exam within a rolling enrolled agent vs cpa 18-month period that begins as soon as you pass your first exam section. Once you pass your first section, you have 18 months to pass the remaining three sections. If you don’t pass the remaining sections within this time, you will lose credit for the first section you passed.

In order to become an enrolled agent, you must either take the Special Enrollment Exam (SEE), also known as the enrolled agent (EA) exam, or have previous work experience at the IRS. While passing the exam is much easier once you’ve acquired several years of tax experience, there is no prerequisite for taking the EA exam. You just need a Personal Tax Identification Number (PTIN) to schedule the exam.

Otherwise, you can take the exam parts at any other time and in any order you like. Each exam part lasts a total of four hours, including a short break. Stephanie also is a published author of the book How to Pass the CPA Exam.

For example, small business owners might seek an EA or CPA with expertise in business taxes. To become an EA, candidates generally must pass a three-part test, apply for enrollment with the IRS, and pass a background check (including verification of past tax compliance). Certain IRS employees don’t have to take the exam because of their experience with the tax agency. Every state board of accountancy mandates 150 credit hours of education to sit for the CPA exam.