Enrolled Agent vs CPA: Which Is Right for You?

Also, as part of their evaluation of your enrollment application, the IRS will conduct a suitability test that includes a review of your personal tax compliance. The Enrolled Agent (EA) credential is a nationally recognized certification offered by the IRS for tax professionals. There is no specific education or work experience requirement, although candidates should have well-established tax knowledge before taking the exam.

The CPA Exam section equivalent to the EA exam is Regulation (REG). Only around 70% of the REG material relates directly to the EA exam, while the rest covers other topics such as business law. For more information on the exams, check out our free EA Exam Guide and our CPA Exam Guide. On the other hand, the CPA Exam has four parts and much broader content. The section equivalent to the EA exam is Regulation (REG), and only about 70% of the REG content directly relates to the EA exam.

EA vs CPA salary: what you need to know for your career

However, an EA’s job is limited to taxation, whereas a CPA’s responsibilities are much broader. CPAs are qualified to perform more specialized tasks, such as auditing and consulting. They may also be called upon to provide advice on financial matters for their clients or business organizations.

Once you pass your first section, you have 18 months to pass the remaining three sections. You must then pass that section and any other unpassed sections within 18 months enrolled agent vs cpa salary of the time you passed your second section. With such regulated deadlines, relying on a CPA review course and studying consistently are essential for CPA Exam success.

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On the other hand, if you are interested in accounting practices that have nothing to do with taxes (such as auditing), then pursuing the CPA option is the obvious choice. CPAs typically earn more than EAs but that could vary depending on where you fall on the career continuum. An EA with many years of experience could earn more than a CPA who is in their first year or two in practice.

In case you fail an EA exam part, you can take each section a total of four times during a single testing window (May 1 of one year to February 28 of the next). You can pass the EA exam in a timely manner by studying with an EA review course and sticking to a study schedule. But salary varies depending on where you are on the career continuum. Generally speaking though, if you are a CPA, your income will quickly outpace that of an EA. You could work for the government, in the private-sector, or for individuals.

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Be sure to consider additional factors alongside salary when planning your professional path. 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. As for employment situations, jobs for CPAs and EAs usually take place in different environments. They actually have their own clients and can, therefore, work at home with flexible hours.

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. She is also the Executive Committee member responsible for Finance at New Sight Eye Care, a charity registered in the United Kingdom and Hong Kong. She oversees the financial aspect of New Sight in Hong Kong, including accounting, taxation, financial management, and compliance.

By comparison, a CPA can have a number of opportunities for earning money. For instance, CPAs working for conglomerates or in a CPA https://personal-accounting.org/part-a-analyze-record-post-adjusting-entries/ firm could easily bring in six-figure salaries. Congress created the designation of enrolled agent in 1884 following the Civil War.