When it comes to accounting, one may get easily confused with a pool of acronyms. But with a thorough understanding of certain accreditations is key if you are looking for any tax experts to guide you with this particular case, then iLead is here to help in your decision making. Are you in a dilemma to choose between EA and CPA and which one is better and right for you? Read more to clear your doubts:
A lot of tax professionals wish to advance their careers in accounting and taxation but don’t know which to opt for EA or CPA. CPA and EA certification both are great options to choose which will help you in getting promoted, earn a higher salary, and can guide your career well.
Both the CPA and EA are great certifications that most of the tax professionals want to do in order to advance their taxation careers. Though the CPA and EA help you in seeking a fruitful career you should know the differences between them to move forward and make your decision. Let’s get in detail about the most commonly confused job titles EA and CPA, compare each one and see which one is right for you.
What is an Enrolled Agent?
An enrolled agent or EA is a kind of tax preparer who focuses on managing tax arrangements for private entities as well as businesses. Enrolled agents boast a wide range of knowledge in US tax-related subjects as income, payroll, returns, gift, estate, levies, inheritance, non-profit as well as retirement taxes. Once an individual passes an EA qualifying exam and earns EA certification by the federal government who recognizes them as American tax experts or tax specialists.
EAs are federally licensed tax practitioners who have unlimited rights to represent taxpayers before the Internal Revenue Services (IRS). The Enrolled Agent is licensed and regarded with the highest credentials by the IRS. To become an Enrolled Agent, one has to pass a three-phase comprehensive exam called SEE Special Enrolled Examination involves subjects regarding individuals, businesses, representation, practice, and procedure that covers all aspects of the tax code. For this, you can seek help from any reputed enrolled agent course training institute.
The second eligibility criteria to become an enrolled agent is respective candidate must work at IRS for at least 5 years in any position where he/she can interpret and apply the tax code.
If you are thinking to pick the first option and choosing some effective enrolled agent course programs is also plays a crucial role to foster becoming an enrolled agent goal. If so, there is no doubt you can get the best US taxation course from the iLead which is the number one enrolled agent course training institute in Hyderabad.
With our certified Enrolled Agents course training, you can get expertise in real-time tax scenarios and you can also grab various opportunities in big 4 or tax accounting firms. Our USA taxation online classes are designed according to the current trends, dynamic US tax laws, and accounting requirements, and taught by professional CPAs and EA experts.
Enroll iLead for enrolled agent course or USA taxation online classes to learn US tax laws from certified, experienced and practicing CPA and USA taxation course trainer in Hyderabad and build an awesome career in the USA.
What is a CPA?
Both are tax credentials, but CPA is regulated on the state level whereas EA on the federal level. One can become a CPA by completing one hundred and fifty hours and passing a four-tier CPA exam which is held by the AICPA. The CPA competitive exam consists of four main parts that are auditing & attestation, financial accounting, business environment and concepts, and Reporting and regulation.
CPAs have limited scope of practice within their jurisdictions and sometimes it is possible to reciprocity in certain cases. Both EAs and CPAs must uphold stringent ethics and standards.
In the CPA vs EA match-up, CPAs have more flexibility as well as repertoire rather than EAs. CPAs typically do almost all of their work for public accounting firms of varying sizes. They do not specialize in any particular sector of accounting. Rather they could assist as consultants and legal advisors for all tax, accounting, and financial services for entrepreneurs, businesses, and organizations they may represent.
CPAs help their clients in addressing their financial goals through financial planning and money management. These goals can be anything from opening a new branch of business to putting down payment for a home. CPAs are the go-to one if you are looking for a broad scope of expertise.
Difference Between an EA and a CPA
Both CPA and EA are credentials that should uphold stringent ethics and standards, EA is regulated on the federal level and CPA is regulated on the state level.
As CPAs are licensed at the state level means they have limited scope of practice within those jurisdiction. However, CPAs could get reciprocity in certain situations.
Time Requirement Differences
To become a CPA it takes 8 to 9 years because you have to fulfill all the requirements. You should have 150 hours of college credit for any bachelor’s or master’s degree before you can go for the CPA exam. Some states also require some number of hours worked under the direct supervision of a CPA before allowing the individual to take the exam. You also have to pass the daunting CPA exam that has an extremely low pass rate.
Compared to CPA, one can become an enrolled agent very easily, it takes far less time. All you have to do is qualify the three-part SEE examination administered by the IRS later apply for the licensure. The exam could be exempted from taking the exam if you have work experience or qualifying employment with the IRS.
Make a Smart Move in Career through Enrolled Agent Course Training Institute in Hyderabad
iLead’s Certified Enrolled Agents Course training ensures EA certification and expertise in US taxation for working professionals and offering various EA internship programs for freshers as well.
With the US Taxation course in India, one can explore a career in Big 4, US MNCs, and CPA tax accounting firms. Our USA Taxation Online Classes simplifying career growth in accounting with specifically designed study material, thousands of MCQs, and real-time US tax preparation, etc.
After doing the US Taxation course in India, you can also get job placement assistance after completion of training and EA certification.
EA vs CPA Career Path Differences
Enrolled agents specialize in tax issues, this includes preparation of taxes for individuals, business entities and also advising clients. You can find job opportunities at the tax preparation franchises or working for a CPA.
CPAs can work for the government, in the private sector, or for individuals. CPAs can become CFOs, tax specialists, controllers, or auditors. They could work for the state government, small and large companies or corporations in not for profit’s sake or to be self-employed.
On average CPAs and EAs earn almost the same, but the salary packages vary based on where you are practicing accounting career. Usually speaking, even if you are a CPA your income would quickly outpace that of an enrolled agent.
The income potential for enrolled agents tends to topple out over time with the peak earnings to be around 60,000 dollars. On the other hand, CPAs have many opportunities to make money. Especially, if you are a CFO for a conglomerate or a partner in a CPA firm, you can easily earn six figures.
Which is Better?
After weighing all the pros and cons of each job, now it’s your turn to deciding between becoming a CPA or an Enrolled agent.
Enrolled agents are not common in the business sector, that means you could choose to work from home. Being an enrolled agent offers more flexibility in terms of lifestyle, freedom to choose where and how much you want to work.
The overall market has a greater demand for CPAs and EAs. If you want to enjoy working with US taxes and to address challenges involved in keeping up with complicated regulations, then becoming an enrolled agent might be the direction to go.
Before any decision, it is better to consult a professional who has the expertise and a solid handle on taxation laws, EA experts or CPAs. This allows finding the right fit for you.