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A Comparison between Certified Public Accountant and Enrolled Agent

Government requires businesses to file their tax returns on time and prepare annual financial statements for large corporations, however, most small business lack enough capital to maintain an accounting department to perform these tasks, this makes them seek these financial services from qualified financial professionals learn more here. Big businesses generally do not struggle much with accounting and tax matters because they have a dedicated accounting department for this, however, small businesses struggles to choose between certified public account (CPA) and Enrolled Agent (EA) to assist them with accounting and tax matters. In this guide we identify some differences between CPA and EA to help you pick the right professional for your accounting or taxation matters.

Some of the main differences between CPA and EA professionals exist in services they can offer, a CPA agent is authorized to provide a variety of accounting and other financial related matters, however, EA agents are mostly confined to tax-related services, it is also worth noting that CPA and EA professionals also vary in terms of their licensing, in some countries CPA agents are licensed by the state where EA professionals are licensed by the federal government visit this page for more info.

There are also some differences in the procedure of becoming a CPA or EA professional, to become a professional CPA agent you must have an accounting or finance-related degree with credit hours between 120 to 150 to be allowed to take a CPA certification exam, in many countries once you pass your CPA exams you have to work under the supervision of experienced and recognized CPA professionals at a given period before you are licensed, to be an EA, on the other hand, you do not need to have a degree, all that is required is to undertake a three part exam in the area of taxation, ethics, and presentation, an EA professional is also required to update their taxation knowledge after three years to ensure their status as EA agent remains active check this website for more info.

The question is who to pick between CPA and EA, it is recommended that if you run a big corporation to go for CPA professionals because big corporations are mandated by law to have an annual audit done by independent auditors CPA agents are the authorized professionals for this matter, furthermore, the complexity of accounting and finance in big businesses are beyond EA professionals, it is also good to recognize that partnership is not required to present annual financial statements so auditors are not mandatory, but if you need tax-related services consider CPA agents because of financial complexity of your business, in case you operate a small enterprise and you need assistance with filing your tax returns EA professionals are the best check this website for this service. You can use these comparisons between CPA and EA to choose the right professional for your business.

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