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A Comparison between Certified Public Accountant and Enrolled Agent

One of the thing that bother many business people is accounting and tax matter, this part in business give many nightmares because of complex process and strict deadlines involved, this is especially true where one is inept in accounting or finance. Large corporations in most cases can maneuver accounting matters with less hassle because they have accounting department stipulated with financial tasks, however, small enterprises because of their inadequate capital they have to outsource, this leaves them exposed to confusion between picking certified public account (CPA) or Enrolled Agent (EA) view here for more. 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.

To become a CPA professional is a lengthy process and require someone to have a BSC degree in accounting with between 120 to 150 credit hours for one to be allowed to take a CPA certification exam, and once you pass your CPA certification you are required to work under experienced CPA professional for a given period before becoming a licensed CPA professional, but to become an EA the process is relatively easy as you are not mandated to have a degree, however, one must complete a three part exam to demonstrate their understanding in these areas taxation, ethics, and representation EA professionals are also required to renew their taxation knowledge after every three years to keep their status active read more here.

The confusion may arise when it comes to picking between CPA or EA, but in case you have a big business the law expects you to prepare and present a financial statement annually which must be verified by an impartial auditor, this is why you need the services of CPA agent, it is also good to hire them for tax-related matters because of the complexity of financial matters in big corporations, but the small enterprise is not required to audit their accounts, but they have to file their tax returns a service they can receive from EA professionals. You can use these comparisons between CPA and EA to choose the right professional for your business.

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