), Losing motivation? The EA designation is a federal credential. Additionally, the questions on the REG CPA Exam section are harder than those on the EA exam. I was a shocked as anyone because even though I managed to get good marks, I still felt confused about the material. The cost of each section of the exam is $111.94. Taxation is covered under Regulation. Many CPAs start out in audit firms, but as they accumulate experience, they can launch their own CPA firms and have their own clients. The exam could be exempted from taking the exam if you have work experience or qualifying employment with the IRS. 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 are both the professionals necessary to help your business grow, however, these are two different terms because they are issued by two different certifications and they have their own responsibilities. See our top 20 most inspiring CPA Exam Quotes, Top 3 differences between the CMA and CPA exam you need to know. CIA Exam She later joined her client to work in the Group Finance Department, where she spent five years specializing in corporate finance, mergers and acquisitions, and debt refinancing. Therefore, CPAs who specialize in tax should consider obtaining the EA so they can display their tax expertise. However, years of experience is not quantified. Enrolled agents are licensed by the IRS. (You'll be surprised! Satisfying the experience requirement usually involves working in an accounting position for 1-2 years. Application Process EAs are authorized to prepare returns and advise their clients in tax matters and are allowed to represent taxpayers in disputes with the IRS. You become a CPA by completing 150 undergraduate hours and passing the four-part CPA exam which is administered by the AICPA. When it comes to accounting, you may get easily confused amid the sea of acronyms. To help you make this decision. Wiley CPA vs Gleim Enrolled agents are given the authority to prepare tax returns, advise and represent individuals, estates, corporations, partnerships and trusts. The primary difference between the two is that the license of an EA is authorized by the federal government, i.e., the Internal Revenue Service (IRS), giving them nation-wide authority. Mary Stimburys Ticchione took both the CPA exam and the Enrolled Agent exam. The 150-hour education requirement expects you to earn an additional 30 credit hours on top of your base 120 hours (120 + 30 = 150). Job opportunities for you may be found at tax preparation franchises or working for a CPA. However, while EAs and CPAs are both tax practitioners, they differ … Accounting Entrepreneur. What is an EA (Enrolled Agent)? She began her career as an investment banker at Lehman Brothers in New York and Morgan Stanley in Hong Kong. Score Release Dates Roger CPA Don’t forget that in order to maintain licensure, you will have to take ongoing continuing education (CE) courses. ★ enrolled agent vs cpa: Add an external link to your content for free. Using an Enrolled Agent for taxes is usually more cost-effective than hiring a CPA. CPAs typically earn more than EAs but that could vary depending on where you fall on the career continuum. No matter the acronym after their name, the first step in your decision-making process is to make sure they are licensed. 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. EAs are therefore effectively able to represent persons who are audited by the IRS. Kenneth W. Boyd is a former Certified Public Accountant (CPA) and the author of several of the popular "For Dummies" books published by John Wiley & Sons including 'CPA Exam for Dummies' and 'Cost Accounting for Dummies'. If you think this is the path for you, you can learn more about how to become a CPA at my site. A CPA’s careers choices are much greater and you could work for the government, in the private sector or for individuals. CPA Review CMA Review CIA Review EA Review CPE AFSP Academia, Contact Us About Gleim Employment Privacy Policy Our Staff Terms of Service, Log In FAQ Tech Support Product Updates, What furloughed or unemployed accountants should be doing right now, Guest Blogger Stephanie Chin: How a Study Routine helps to prepare for the CPA REG Exam. Differences Between CPA & Enrolled Agent: Criteria: CPA: EA: Professional Focus: Broad accounting, tax and financial services for businesses: Taxes for businesses and individuals: Qualifications for Practice: State education requirements (usually 150 hours of undergrad); pass CPA exam: Five years IRS experience; pass the EA exam: Hourly rate CFA Institute does not endorse, promote or warrant the accuracy or quality of ais-cpa.com. CPA Exam Books, Best CPA Review Courses When it comes to accounting, you may get easily confused amid the sea of acronyms. CPAs … In contrast, you must meet educational requirements to take the CPA Exam. As demand increases for tax advice due to changes in the tax … The IRS explains that processing your application may take as long as 60 days (90-120 days if you’re a former IRS employee). Now, different business owners run their businesses in different ways. Enrolled Agent vs. CPA: What’s the Difference? If you are facing a tax problem, controversy and need representation, then you need to retain and hire a tax representation firm. The path to the CPA is long and arduous but more popular. Your employer may or may not bear the cost of CPE or licensure. Let’s compare each one and see which is right for you. If you are a partner in a CPA firm or a CFO for a conglomerate, you could easily take home six figures. EAs work on tax matters only, so they can specialize in certain areas such as tax preparation or tax resolution. Kenneth W. Boyd is a former Certified Public Accountant (CPA) and the author of several popular accounting books including 'CPA Exam for Dummies' and 'Cost Accounting for Dummies'. To become an EA, you first must obtain a PTIN (Personal Tax Identification Number) from the IRS, which costs $50. The median salary for a CPA is $62,123 versus $49,000 for an EA. The Enrolled Agent credential requires more in-depth tax knowledge than the CPA credential, meaning EAs are valuable to clients looking specifically for advice on advanced tax issues. Today, Ken continues to use those finely tuned skills to educate students as a professional writer and teacher. A case where this might make sense is if you work as an EA while you are preparing to sit for your CPA exam and then continue to specialize in taxation. The enrolled agent earns approximately $30,000 to $75,000 per year. She decided upon the Enrolled Agent license because it fit her career goals and aspirations more-so, than the Ohio CPA license. From certified public accountants (CPA) to enrolled agents, similarities in the tax practitioner profession can further alter that first step in distinguishing who is going to help you and your specific situation most. In fact, the amount of shared content can help candidates earn both certifications at the same time. Robert Hall & Associates is founded on the belief that most accounting firms don’t provide the necessary level of tax expertise and knowledge. According to Payscale.com, a CPA earns around $40,000 to $140,000 per year. Knowing the difference between a CPA vs Enrolled agent can help you in your search. Both CPAs and EAs must uphold stringent ethics standards. The best way to pass the EA exam in a timely manner is to use an EA review course and stick to a study schedule. CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute. This study schedule should include taking all three parts in two years. But if you’d like to specialize in tax matters and get on the fast track to working at home with your own clients, then set your course for the EA credential. The steps to becoming an EA or a CPA are quite similar. a tax practitioner who is licensed at the federal level by the Internal Revenue Service. The REG questions don’t go into as much detail about tax, but they are more varied and complicated, partially because the CPA Exam contains multiple-choice questions and task-based simulations. Enrolled agents (EA) Certified public accountants (CPA) EAs and CPAs are both tax experts, and the work they do is similar, but there are some differences between an EA vs CPA. After you’ve passed the exam, there is a $30 enrollment fee. This includes preparation of taxes for individuals and business entities as well as advising clients. An EA with many years of experience could earn more than a CPA who is in their first year or two in practice. They have their own clients and therefore can work at home with flexible hours. A CPA’s careers choices are much greater and you could work for the government, in the private sector or for individuals. She also extended her role to management accounting and financial accounting and obtained her U.S. CPA qualification. Enrolled agents usually don’t work for a firm. To prove it, let’s start by looking at how enrolled agents add value and then consider the assistance CPAs can provide. Enrolled agents are not as well-known as CPAs, but they are as good if not better with income tax matters. The main difference between these two processes is the manner in which you fulfill the basic requirements. It really all boils down to what your career aspirations are. CPAs can work for the government, large and small companies/corporations, in not-for-profits or be self-employed. If you don’t pass the remaining sections within this time, you will lose credit for the first section you passed. This means our focus is purely on these topics, and not on a variety of legal or accounting issues, like a tax attorney or CPA. In business school, I somehow managed to ace my accounting classes. Six Sigma Exam Glossary Enrolled Agent vs CPA: What’s The Right Choice? CPAs can handle both accounting and tax matters.A CPA’s expertise mainly lies in accounting and auditing, but most can provide tax filing services as well. (Re-takes require additional fees.). Search: Add your article Home. Exam Schedule & Dates Some states require that also require a certain number of hours worked under the direct supervision of a CPA before allowing you to take the exam. But a solid understanding of certain accreditations is key if you’re looking for a licensed tax professional to guide you through your financial needs intelligently. If you plan to enhance your career as a tax professional, you’re probably facing a daunting choice of designations: Enrolled Agent vs CPA. To become a CPA, you will have to satisfy specific educational requirements first, take a specialized exam, gain work experience and then become licensed in the state in which you intend to work. Exam Sections 3 min read. You can take the exam parts hours, days, or months apart, and you can arrange them in any order you like. It requires a whole lot of hard work, motivation, dedication, and sacrifice. You may be familiar with ‘CPAs,’ or ‘Certified Public Accountants.’ These professionals are licensed only in the state(s) they operate in and are not required to demonstrate their […] It takes far less time to become an EA. CPAs … Once you pass your first section, you have 18 months to pass the remaining three sections. enrolled agents vs. cpa's. As you probably remember, the EA exam only has three parts, while the CPA Exam has four. Fast Forward Academy Where you go to school to get your bachelor’s degree will be one cost, as well as if you continue on to get your master’s as part of the 150 credit hour requirement. Additionally, she created I Pass the CMA Exam, the first CMA help site. Wiley CPAexcel For more information on the exams, check out our free EA Exam Guide and our CPA Exam Guide. A lot of tax professionals want to advance their careers but don’t know which to choose: EA vs CPA. So, if you are in a state that requires two years of work experience and you also take advantage of the entire 18-month window for testing, you’re looking at 8 ½ years. The CPA exam consists of four-parts: Auditing and Attestation, Business Environment and Concepts, Financial Accounting and Reporting and Regulation. Enrolled Agent vs CPA for Business Tax Preparation . If you fail an EA exam part, you can take it three more times (a total of four) during the testing window. Why Become a CPA? Yaeger vs Roger. If you are a CPA, then there is no need to become an EA, as the CPA is qualified to perform the duties of the EA. Gleim CPA Attorneys, CPAs, and EAs can represent the clients on behalf of the IRS. Both CPA’s and EA’s have to demonstrate their proficiency and are either licensed at the state or national level. Real Estate Exam Surgent CPA Enrolled agents are a more affordable option than tax attorneys. According to Payscale.com, enrolled agents typically make between $33K to $80K a year, while CPAs make between $49K to $115K per year. 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. For example, enrolled agents can represent their clients in civil resolution cases. Enrolled agents also have the opportunity to earn extra money during tax season. In 2019, enrolled agents brought home an average of $64,108 per year, reports the salary comparison site Payscale. 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