Should I hire a CPA or an EA to do my personal or business taxes? What are the pros and cons of hiring a Certified Public Accountant versus an Enrolled Agent?

ea vs cpa salary

And then you will need a CPA review course, which could add more to the total costs of becoming a CPA. Hope you have found the complete details and differences between CPA and EA. Hi-Educare is India’s No.1 training provider for the CPA and EA courses. If you have any queries regarding the CPA course and EA course, feel free to contact us. She began her career as an investment banker at Lehman Brothers in New York and Morgan Stanley in Hong Kong.

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. Yet, the value they add to the public differs, as you can see from these lists. On the other hand, the remaining requirements for the CPA Exam are a bit more intensive. In most cases, state boards mandate that you acquire 1-2 years of accounting experience. And, you may need to have another CPA supervise and sign off on this experience. Finally, you may also need to pass the state’s ethics exam.

Best-Paying Cities for CPA Enrolled Agent

EAs must be tax experts, so the SEE goes into great depth on tax matters. However, the CPA Exam covers four different subfields of accountancy.

  • It goes without saying that you should always put a client’s needs first, what better way to separate yourself from others than as a knowledgeable wealth and tax expert?
  • In fact, some experienced tax professionals can pass these parts without much studying.
  • While there could be exceptions to the rule, CPA licensure generally has a much higher barrier of entry than the enrolled agent credential.
  • This chart presents the totals for the Enrolled Agent exam and the CPA Exam costs.
  • According to Payscale.com, a CPA earns around $40,000 to $140,000 per year.
  • You’ll receive your exam results immediately, and once you’ve passed, you can apply for enrollment.
  • According to Payscale.com, enrolled agents typically make anywhere between $30,000-$75,000 a year, while CPAs make between $40,000-$104,000 annually.

The CPA Exam used to have a stricter timeline than the EA, with scheduling “windows” throughout the year. However, NASBA now offers all four parts of the exam year-round with continuous scheduling. The only limit on availability is placed by the individual testing centers. This means that, if you fail one part, you have the option to retake it sooner than you could before. Overall, you must pass each exam part within a rolling two-year window.

Scheduling the Exam

EAs and CPAs are both knowledgeable, experienced professionals who are required to maintain high ethical standards. The primary difference between an EA vs CPA is that EAs specialize in taxation, and CPAs can specialize in taxation and more.

EAs can work for several different types of clients including individuals, corporations, partnerships, estates, and trusts. Basically, EAs can represent any client that is required to report and pay taxes. Education for public accounting is vital to mention when answering the question, what is a PA? Strong business finance and https://personal-accounting.org/ mathematical skills must be augmented with thorough organization abilities. The term public accountant means that they are not internal and do not depend on their client for their welfare. A Certified Public Accountant is limited to offering services in the jurisdiction they are licensed in, much like solicitors in the US.

EA vs CPA: The Choice

Since many foreign tax advisors only work with clients that live abroad, it will be good to have knowledge and experience with forms . You can learn a lot about these areas in tax by preparing for and getting your EA credential. Based on recent job openings, salary ranges for Foreign Tax Advisors range between $50,000 – $120,000 a year. Again being ea vs cpa salary bilingual is a plus but is not always a requirement. Each year, thousands of nonresident aliens become gainfully employed in the United States. Thousands more own rental property or earn interest or dividends from U.S. investments. Serving an international client base, this type of career lends itself most often to a telecommuting career.

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According to PayScale, the average yearly salary for an EA is $48,987. Similarly, you need to account for the cost of a CPA review course, which is extremely vital to the CPA exam process. And unfortunately, a CPA review course is also more expensive, costing about $1,700 on average. Usually, you pay $208.40 for each of the 4 CPA Exam parts, which comes to $833.60 in total. Again, this type of course will help you successfully prepare for the exam so that you can pass on the first try.

What Determines How Much An Accountant Will Make?

These goals could include anything from putting down a payment for a home to opening a new branch of business across the country. In other words, a CPA is the go-to if you’re looking for a broad scope of expertise. EA candidates have to pass a background check, which is conducted by the IRS. Ethics are a big deal for EAs, so you need to have proof of ethical tax history.

Is EA the same as CPA?

EAs and CPAs are both knowledgeable, experienced professionals who are required to maintain high ethical standards. The primary difference between an EA vs CPA is that EAs specialize in taxation, and CPAs can specialize in taxation and more.

So, naturally, Part 2 has a reputation for being the hardest section of the EA exam. And the EA exam pass rates validate this understanding of the exam parts, as Part 2 has the lowest pass rates of them all.

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