There is also a continuing education component that entails taking 72 credits every three years. One of the most compelling factors when choosing between becoming an EA or a CPA is salary. As of 2023, Certified Public Accountants generally earn more, with an average annual salary of $77,370, compared to the $60,725 average for Enrolled Agents. While CPAs earn more, many tax professionals find the EA path more fulfilling due to its micro focus on tax issues and less rigorous exam cycle. While both EAs and CPAs are qualified to provide tax services, there are differences between the two. A senior-level enrolled agent with between 10 and 20 years of experience can typically expect to earn an average salary of $55,000.
Common Enrolled Agent salary ranges in the United States
I am graduating soon and will have the 150 credits required to get my CPA license. I am torn between getting my EA or CPA since I plan to stay in and specialize in tax so I was thinking EA might be the right choice to make, at least out of college. Many people choose a specific career path based on potential earnings.
Enrolled Agent vs. CPA: Understanding the Key Differences for Your Tax Needs
CPAs can provide a much wider scope of tax services than an EA can. What’s more, general population demand is greater for CPAs than EAs. Once EAs have passed their qualifying exam, the federal government recognizes them as tax specialists. Typical EA responsibilities include representing business or individual clients in tax audits, tax appeals and tax collections. Additionally, EAs can also provide tax advice, tax return filing and more. An enrolled agent, or EA, is a kind of tax professional who focuses narrowly on managing tax arrangements for business or private entities.
EA vs CPA: Exam Requirements and Format
Here, we dive deep into the specifics of these roles, from their educational qualifications to their place in today’s business environment. If you are an enrolled agent, you specialize in tax issues period — such as preparation of taxes for individuals and enrolled agent salary business entities or advising clients. Job opportunities for you may be found at tax preparation franchises or working for a CPA. A CPA’s careers choices are much greater and you could work for the government, in the private sector or for individuals.
Hiring an EA might be the more affordable option because their services are more limited. For instance, an EA may be more cost-effective if a small business owner only needs tax preparation and planning assistance. EAs must complete 72 hours of continuing education every three years, with at least 16 hours each year.
Get $1,200 Off Surgent CPA Ultimate Pass
You probably have a lot of basic questions if you’re trying to compare tax professionals in your area. So, before you pick an EA or CPA, check out these common questions people have about hiring these two types of tax professionals. To become an EA, candidates https://www.bookstime.com/ 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.
- All these are very important for calculating tax payable and preparing returns which a CPA is also very adept at.
- With the information you now have, you can choose a tax professional for your business.
- He is also proficient in using taxation software, like Turbo Tax and QuickBooks.
- This range depends on various factors, such as the choice of college, state of licensure, and the specific CPA review course selected.
- Next is the five years of work experience working with the IRS, which is extremely important to gain practical knowledge in the field of enrolled agents for the IRS.
- EAs, with their specialization in tax preparation and tax consulting, have a more focused earning scope.
- CPAs can offer a holistic approach to your business and personal financial needs, from tax planning to strategic financial planning.
- If you are a CPA, then there is no need to become an EA because a CPA is qualified to perform the duties of the EA.
- Many CPAs start out in audit firms, but as they accumulate experience, they can launch their own CPA firms and have their own clients.
- They need to download Form 23, which is the application for getting permission to practice before the IRS.