Every state board of accountancy mandates 150 credit hours of education to sit for the CPA exam. 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 salary
But they’re not the only ones who can help people make sense of tax issues and concerns. If you’re considering a career focused on assisting clients with tax-related issues, you may be weighing your options enrolled agent salary between enrolled agent vs CPA. The increasing need for enrolled agents in recent years means that EAs could potentially have a higher income than CPAs because these specialists are in such demand.
EA vs CPA: Value-Add to Clients
For accountants and finance professionals who excel in tax matters and are seeking a career that offers both growth opportunities and flexibility, this may be the right credential for you. If you’re asking, “What is an Enrolled Agent, and how do I become one,” we’re sharing everything you need to know. CPAs (Certified Public Accountants) are licensed at the state level and have a broad scope in accounting, auditing, and financial planning. EAs (Enrolled Agents) are federally licensed by the IRS and specialize in tax-related matters.
Becker can support your career as an Enrolled Agent
Although they can provide financial advice, CPAs can’t offer legal services or represent you in court. When you have a complex tax situation that requires expertise beyond taxation, choosing an EA may result in missed opportunities or inaccurate financial reporting. Conversely, if you have a simple tax situation and hire a CPA, you may pay for services you don’t need. Electronic payments, by contrast, offer a secure way to pay that’s faster and easier to track than a check through the mail. Electronic payment options are nearly ubiquitous now, so it’s a good time to break the bad habit of writing checks. You have to 150 hours of college credit (bachelor’s/master’s degrees) before you can sit for the CPA exam.
Learn the exam content.
Then, after you pass the CPA Exam, you’ll probably have to pay for the ethics exam, which typically costs $130. As you can see, you only have a certain amount of time to pass the EA and CPA exams. With just 2 years to pass the EA exam and 30 months to pass the https://www.bookstime.com/ CPA Exam, you’d benefit from passing each part on your first try so you can finish each part within the time limit. For example, most state boards require candidates to have 150 credit hours (equivalent to a bachelor’s and master’s degree) of education.
- If you are an enrolled agent, you specialize in tax issues period — such as preparation of taxes for individuals and business entities or advising clients.
- They have unlimited rights to represent taxpayers before the IRS, making them invaluable for clients dealing with federal tax matters.
- To become a CPA, one must complete 150 undergraduate credit hours, which typically includes a bachelor’s and master’s degree in accounting or a related field.
- They should review their credit chart frequently and keep updated contact information.
They possess ethical responsibility, creating trust and credibility among clients and representing them to the IRS by conforming to the rules. Finally, after passing the exams, the candidate can apply for the enrolment and pay the fee online. They need to download Form 23, which is the application for getting permission to practice before the IRS.
Passing the Exam
- EAs also provide tax advice and file returns for individuals, corporations, partnerships, trusts, estates, and any other entities that have to report taxes.
- Candidates who have a sufficient amount of work experience, according to IRS guidelines, may not even be required to take the exam.
- This scenario presents a unique opportunity for those entering the field.
- EAs (Enrolled Agents) are federally licensed by the IRS and specialize in tax-related matters.
- The job levels for enrolled agent status are entry, mid-level, and senior level.
EA vs CPA earning potential
