EA vs CPA Salary: What You Need to Know for Your Career

Certified public accountants, or CPAs, have a more flexible and expansive repertoire than EAs. They deal in all sorts of realms within the tax world, making them a great choice if your questions involve multiple topics. In addition, states approve CPAs, while the federal government enrolled agent vs cpa salary approves EAs. So there you have, it my list of reasons that all return preparers should become an EA. If you’re an experienced 1040 preparer, then Part 1 of the SEE should be a cake walk. Part 3 requires very little study, and is often the one I suggest people take first.

enrolled agent vs cpa salary

To prove it, let’s start by looking at how enrolled agents add value and then consider the assistance CPAs can provide. It takes about 8-9 years to become a CPA because of all the requirements. You have to have 150 hours of college credit (bachelor’s/master’s degrees) before you can sit for the CPA exam.

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To demonstrate just how privileged enrolled agents are, the National Association of Tax Professionals compares the abilities of various tax professionals. The responsibilities for a mid-level position exceed that of an entry-level agent, which explains the difference in pay. Enrolled agents (EAs) are federally authorized tax practitioners who specialize in tax law, and have the power to represent taxpayers before the Internal Revenue Service (IRS).

enrolled agent vs cpa salary

Whether you connect with a CPA or EA in one of our offices or through virtual tax preparation, you’ve got a tax expert focused on getting you your maximum refund.Disclaimer number84. The income potential for EAs tends to flatten out over time with peak earnings to be around $60,000. If you are a partner in a CPA firm or a CFO for a conglomerate, you could easily take home six figures.

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In 2019, enrolled agents brought home an average of $64,108 per year, reports the salary comparison site Payscale. Both enrolled agents and certified public accountants enjoy virtually unlimited practice rights before the IRS. That means there are no restrictions to the types of tax issues they can handle and the type of taxpayers they can serve. In general, the EA’s job is to help their clients with a variety of tax matters, from tax preparation, to representation during hearings or conferences, to helping them through audits. EAs can be seen in an office, in front of the IRS, or sitting down with clients. They work in accounting firms of all types and sizes, with many EAs starting their own businesses.

They can serve individual and business clients anywhere in the country. Regardless of the path you choose, investing in quality education and exam preparation is essential. Simandhar Education offers invaluable resources and guidance to aid you in achieving success in your chosen profession.

EAs vs. CPAs: How Are They the Same?

From the perspective of the IRS, CPAs and EAs are on the same level. Stephanie also is a published author of https://personal-accounting.org/retained-earnings-calculation/ the book How to Pass the CPA Exam. Additionally, she created I Pass the CMA Exam, the first CMA help site.

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.

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