Enrolled agents are specialized tax practitioners who are certified to represent taxpayers in dealings with the IRS. EAs prepare taxes, can stand in for you during an audit, and handle other business you may have with the IRS. A CPA’s expertise is based on accounting and auditing, but most CPAs provide tax filing services as well. This combination of skills is attractive to small businesses needing both audit and tax services, preferably coming from the same team. Additionally, as we saw above, the process of earning an EA designation is substantially less expensive upfront. And these costs don’t take into account the additional education requirements for a CPA.
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EAs must be tax experts, so the SEE goes into great depth on tax matters. However, the CPA Exam covers four different subfields of accountancy. To finish the process of becoming a CPA after you’ve passed all four CPA Exam sections, you must acquire an additional 30 credit hours of ea accountant salary education to fulfill the 150-hour requirement.
- However, the salary of a CPA will quickly exceed the salary pace of an EA.
- Before we compare salaries, we should note that EAs and CPAs don’t necessarily perform the same job.
- CPA candidates usually choose a course like Becker CPA, Gleim CPA, or Surgent CPA.
- You’ll have to pay this fee the first time you apply to your state board, and it ranges from $30 to $200, depending on the state board.
Navigating the World of Tax Professionals and Certified Public Accountants
Take a look at our Enrolled Agent Salary Guide to get an idea about industry salary range. I am the author of How to Pass The CPA Exam (published by Wiley) and the publisher of this and several accounting professional exam prep sites. All in all, while there may be exceptions to the rule, the CPA license generally has a much higher barrier of entry than the EA credential. Offer more flexibility and greater access to management, giving individuals a greater say in the perks and fringe benefits available. Both of these licenses are great options, but which one should you get. Certified public accountants do generally have more job opportunities due to the fact that they can work for private individuals, in the private sector, or for the government.
Special Enrollment Exam (EA Exam) vs CPA Exam
This exam covers auditing and attestation, business environment and concepts, financial accounting and reporting, and regulation. Overall, it usually takes at least eight years to become a certified public accountant due to the necessary requirements. In some states, candidates must also work a certain number of hours under the direction of a CPA prior to being allowed to sit for the exam. Another factor to consider as you choose your career path is the earning potential for both the EA credential and CPA license.
How do I become an enrolled agent?
They handle balancing the budget and must use budgeting and auditing software programs. Completing the AFSP is not nearly as comprehensive as receiving an Enrolled Agent designation, and you do not have as many rights as an EA. However, it is vastly cheaper than that of preparing and sitting for the EA exam, and takes much less time to complete. Surgent offers study materials for both the CPA Exam and the EA Exam to get you on your way to licensure and your new career. The Special Enrollment Examination, or Enrolled Agent Exam, consists of three examinations.
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After Congress passed the income law in 1913, the duties of EAs were expanded to include tax representation. According to ZipRecruiter.com, the average annual salary for an Enrolled Agent as of December 2021 was $59,020. Using a review course is just as essential to passing the CPA Exam as the EA exam (if not more so), and CPA Exam prep is also pricier. After you pass the CPA Exam, you will probably also have to take the ethics exam, which usually costs $130. Finally, you must pay the CPA licensing fees, the mid-range of which comes to about $150.
While both the CPA and EA credential require tax knowledge, the EA is much more niche within the industry and geared more toward tax practitioners. 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. EAs, or enrolled agents, are tax preparers authorized to represent taxpayers before the IRS.
Each exam lasts 3.5 hours and contains 100 multiple-choice questions. Start studying today with Surgent EA Review — the smartest way to pass the Enrolled Agent exam — start your free trial today. According to Payscale.com, entry-level EAs generally begin with a salary of about $52,000 per year. CPAs, on the other hand, are public accountants who file reports with the Securities and Exchange Commission (SEC). There is no national certification for CPAs, so they must be certified in each state in which they intend to work.
As you’ll see, the basic steps are the same, but the manner in which you fulfill the requirements differs. It’s important to note that these figures are averages and individual salaries may vary based on factors previously discussed. It’s really a personal choice what size company you want to work for, but you should consider benefits that can affect your quality of life.
And yes, there are also a few other CPA Exam fees you’ll need to budget for, depending on your situation and testing track record. Different specializations, such as tax preparation or financial consultation, may command varying compensation levels. It’s important to consider one’s particular niche when evaluating earning potential. The biggest step you can take to increase your salary as a tax preparer is to become an Enrolled Agent. For CPAs, the requirements are often more rigorous and can vary depending on the state board’s stipulations.
This focused expertise is particularly valuable in tax-related roles. An enrolled agent usually works on a year-round basis helping clients. As part of an EA’s job responsibilities, he or she often develops a strategy for handling matters with the IRS. In this capacity, enrolled agents work to reach satisfactory agreements regarding plans, payments, estimations, and settlements. Due to the fact that this type of work can be quite complex, the job of an EA is often in high demand. No matter which career path you decide to take, you’ll be an elite professional in the field of accounting.