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. 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. This article highlights some disparities between CPA and EA professionals to assist you to choose the appropriate one for your accounting or tax-related concerns.
One of the principle differences between certified CPA and EA are CPA agent is a certified financial professional who authorized to offer myriads of financial assistance, EA agent on the other hand focuses mainly on tax matters, the differences also exist in licensing where in some countries CPA are state-licensed while EA agents are licensed by the federal government, regardless of whom you pick they are both authorized to represent your business on tax-related issues more about CPA and EA here!
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 now is who to choose between CPA and EA, if you run a big business you know very well the law demand you prepare an annual financial statement that is verified by an independent auditor, for this reasons you need to consider services of CPA agents, given that CPA professionals can provide tax-related services it is worthwhile to utilize their services because of financial complexity involved in big corporations, however, if you run a small business you are not required to audit it by law if you need services related to tax EA professionals are ideal for you. You can use these comparisons between CPA and EA to choose the right professional for your business.