EA vs CPA Salary: What You Need to Know for Your Career

Once they’ve done so, they can use their expanded tax knowledge to return to the CPA Exam, pass it, and get their CPA license as well. 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. Once EAs have passed their qualifying exam, the federal government recognizes them as tax specialists.

CPA vs EA License?

If, however, you’d like to work with a wider range of financial topics and have access to higher salaries, then becoming a CPA is the way to go. All-in-one practice management that unlocks the firm you’ve always wanted. For more information on the exams, check out our free EA Exam Guide and our CPA Exam Guide. The main difference between these two processes is the manner in which you fulfill the basic requirements. All features, services, support, prices, offers, terms and conditions are subject to change without notice. Get unlimited advice, an expert final review and your maximum refund, guaranteed.

The Breadth and Depth of Roles: EAs and CPAs in the Business Environment

As you’ll see, the basic steps are the same, but the manner in which you fulfill the requirements differs. Regarding accounting credentials, the CPA and EA are both good options. Plus, they each have pros and cons and distinct effects on your long-term career. Keeping college students engaged can be a difficult feat for teachers, especially in a remote learning class. The past year has been a whirlwind for accountants across the industry, leading to impressive innovation in the…

• In most cases, state boards mandate that you acquire 1-2 years of accounting experience.
• Each career path has its merits and focus, whether it’s financial accounting, tax preparation, or even financial planning.
• It involves fewer education and licensing requirements than becoming a CPA and provides the opportunity to be self-employed as soon as you’re licensed.
• When it comes to accounting and tax planning, you may get easily confused amid the sea of acronyms.
• Typically, their clients are businesses that need both accounting and tax services.
• On the other hand, Certified Public Accountants work for businesses that require accounting and tax services.
• But the taxation section of REG is highly comparable to the EA exam.

For Larger Enterprises and Complex Accounting Needs

The sections include Individuals; Business; Representation, Practice, and Procedures. Applicants have two years in which to pass all parts of the exam. The decision depends enrolled agent salary on a lot of different factors, such as deciding what kind of colleagues and clients you want to work with and which areas of accounting interest you the most.

Should you choose both CPA licensure and EA credentials?

They can prepare financial accounts, provide audit services, and offer tax expertise. Typically, their clients are businesses that need both accounting and tax services. EAs, or Enrolled Agents, are federally-authorized tax preparers https://www.bookstime.com/ who specialize in taxation. They represent taxpayers before the IRS and can provide expert advice and guidance on any tax issue. Additionally, the questions on the REG CPA Exam section are harder than those on the EA exam.

EA vs CPA: Comparing the Requirements, Salaries, and Careers of Enrolled Agents and CPAs

When deciding between an EA or a CPA, you will see that both types of professionals are well-qualified. They can both deliver the financial guidance you may need for your taxes. However, which one you should consult depends on which issue you want to resolve. A CPA needs to have a 4-year degree from a qualified university, then pass the CPA Exam in order to earn the CPA credential.

CPAs know the numbers, so hiring a CPA makes sense for businesses that need trusted advisors to provide them with better and more accurate tax planning. Conversely, CPAs tend to start off working for accounting or auditing firms, but as they gain experience, they too launch their own practices. In most cases, candidates pick Surgent CPA Review, Becker CPA Review, Gleim CPA Review, Wiley CPAexcel, Roger CPA Review, or Yaeger CPA Review. Fortunately, you can use CPA review course discounts to save on the cost of these courses. To get started, you simply need to acquire a Personal Tax Identification Number (PTIN). However, one of the most important differences between the 2 designations is that of licensure.

EA vs CPA Exam and Credential Requirements

• The sections include Individuals; Business; Representation, Practice, and Procedures.
• The EAs are experts in taxation and hence the SEE deals in-depth with tax topics.
• EAs are expected to have a deep understanding of federal and state tax codes, as well as thorough knowledge of the IRS’ policies and procedures.
• They are typically adept in preparing tax returns and can represent taxpayers before the IRS.
• EAs focus on taxation which may be a preferred choice for individuals seeking expertise in tax planning and problem resolution.

Which EA Review Course Is Right for You?