Certified Public Accountant vs Enrolled Agent Salary Chron.com

Firms are looking to fill entry-level positions, so recent accounting grads and young professionals are in a great position to get their first accounting job. Firms are especially interested in candidates with technology skills that can be applied to growing areas like cloud systems and data analysis. Managers are looking for new ideas and are prepared to provide the necessary on-the-job training to prepare new hires for success. This is a great time to go into accounting, and becoming an Enrolled Agent will help you land an even bigger starting salary than you could without it. Tax preparers work with taxpayers to complete federal and state tax returns.

Job Posting for Tax preparer/ Enrolled Agent at Legacy Tax and Accounting Service

The existence of a fiduciary duty does not prevent the rise of potential conflicts of interest. 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, enrolled agent salary states approve CPAs, while the federal government approves EAs. However, you have two years to finish all three sections and receive a passing grade as long as you schedule one within a year of the date of registration. This means that EAs cannot offer CPA services such as doing audits or preparing financial statements.

• The lowest paid 10 percent earned less than $44,480, while the top earners made more than $124,450 in 2019, indicating a broad range in salaries.
• However, the CPA Exam covers four different subfields of accountancy.
• But they’re not the only ones who can help people make sense of tax issues and concerns.
• Big cities have more job opportunities and a larger pool of skilled workers, but they also typically have a higher cost of living, so location isn’t everything.
• An Enrolled Agent and a CPA are both tax experts and the work done is somewhat similar but there are several areas of differences too.

The Primary Difference: Highest Credential Awarded vs Specialized Service

The less time you take to get the designation, the sooner you and your clients can enjoy your improved status with the IRS. Since the IRS empowers enrolled agents with an unlimited right to practice on a federal level, enrolled agents can work with a client who may have filings across all states in the U.S. However, you still must pass all four parts of the CPA Exam within a rolling 30-month period. This time period begins as soon as you pass your first exam section. At that point, you have 18 months to pass the remaining three sections.

• There are no guarantees that working with an adviser will yield positive returns.
• Tax Preparers looking to further their careers have several options open to them, and these are two of the most popular.
• Additionally, once you earn your EA credential, it is recognized in all 50 states.
• Most people who have taken both report that the CPA Exam is more difficult to pass than the EA exam.
• In addition, they stay informed about tax code updates to protect you and your company.
• You can pass the EA exam in a timely manner by studying with an EA review course and sticking to a study schedule.

Take the first step toward becoming a CPA

Those that specialize in tax preparation can also typically help you with tax and financial planning, accounting needs, and most other financial tasks that you might have. Look to a CPA to identify the credits and deductions you qualify for to increase your tax refund and help lower your tax bill. They’re also a great option if you need tax preparation and planning advice for an individual or business. If you’re interested in professional help with your taxes, you might be wondering what types of specialists there are and which one you need. An enrolled agent and a certified public accountant are both tax experts, but when you should work with an EA vs CPA differs based on your needs.

The Exam Path: Special Enrollment Examination vs CPA Exam Administered

Additionally, once you earn your EA credential, it is recognized in all 50 states. For example, daycare can be a considerable expense for young working families. On-site daycare could save thousands of dollars and dozens of hours in commuting each year. At the same time, some people dislike the bureaucracy that comes with larger organizations, and they’re https://www.bookstime.com/compare-bookkeeping-solutions happier at the end of the day if they have more freedom to pursue their own ideas. The most highly specialized Enrolled Agent probably isn’t going to be earning as much at a smaller organization as they could at a larger one. Some larger organizations pay their entry-level Enrolled Agents more than smaller organizations pay experienced Enrolled Agents.

• To become an enrolled agent, you must either take the EA exam, also known as the Special Enrollment Exam (SEE), or have previous work experience at the IRS.
• Both the EA and the CPA credentials come with a strict code of ethics and professional standards.
• Although your exact salary will depend on a number of factors, including the state you live in, in general, CPAs tend to have higher salaries.
• There are three sections to the exam, which cover individuals, businesses and representation, practices and procedures.
• To become an EA, candidates must pass a three-part test, apply to the IRS, and pass a background check.
• Lastly, taxes must always be paid, and people will always require assistance.

TURBOTAX ONLINE/MOBILE:

In contrast, the EA credential specializes in tax matters, offering an in-depth, nuanced service to taxpayers. The commitment to ongoing education ensures that both EAs and CPAs maintain the highest level of expertise and ethical standards. It allows them to provide the best possible services to their clients, whether they are offering specialized tax advice as an EA or a more comprehensive range of financial services as a CPA. According to the 2024 Robert Half Salary Guide, hiring trends in accounting and finance continue to favor the job candidate.

Accounting for Clubs

This makes the EA credential an attractive option for those who want to specialize in tax-related matters without delving into the broader scope of financial accounting and reporting. The biggest step you can take to increase your salary as a tax preparer is to become an Enrolled Agent. The cost of a CPA license is $150 and this does not include the expenses of passing the exam such as the application fee and cost of study materials which can be as high as $1,700. Overall, it can touch $3k, excluding what it costs to complete the required continuing education of 120 hours over 3 years. To become a CPA, candidates must pass a four-part exam and comply with education and experience requirements.

Enrolled Agents (EA) vs. Certified Public Accountants (CPA)