Obtaining both an EA and CPA designation can be great for your career trajectory, but both require significant study hours and exam prep. Becoming a licensed CPA requires passing the 4-part Uniform CPA Examination and meeting other state-specific requirements. This means that the rules and regulations around being a Airbnb Accounting and Bookkeeping CPA differ from state to state, so be sure to check the laws and regulations in your area. Background- I am a Tax Pro with 8 years experience, average 450 returns per year. “Earning the EA Designation brought my credentials inline with my professionalism and experience. It is a great talking point with my clients and gave me the confidence to increase my fees.” The American Institute of Certified Public Accountants prepares the CPA exam and designs it to be a challenging barrier to career entry.
Gain relevant experience
- However, CPAs are only allowed to practice in the state where their current license is held except for states that accept CPA mobility for limited practice.
- Salary OutlookWhen you look at the figures, the salary for enrolled agents is not going downhill.
- But they are as good, if not better, at serving clients with income tax issues.
- This means that the rules and regulations around being a CPA differ from state to state, so be sure to check the laws and regulations in your area.
- CPEs help you understand the ethical responsibilities and ever-changing tax policies and laws.
- Business knowledge will help you offer clients the best business advice concerning taxes.
Much of your work will require meticulous records keeping as you prepare and draft IRS correspondences. The task of an internal auditor involves a significant amount of detective work. Internal auditors examine an organization’s internal controls and investigate to detect mismanagement, inaccuracy, and fraud. We do not manage client funds or hold custody of assets, we help users connect with relevant financial advisors. A financial advisor can help you maximize the tax efficiency of your investments.
Enrolled Agent vs Accountant: Key Differences Explained
This means you’ll have day to day contact with clients, IRS ACS, IRS appeals officers, IRS revenue officers, IRS revenue agents. You will respond to and perform client audits where you will review tax returns and reconcile financials. This means you will be working to gather financial documents, work to process and save them for future review. 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.
Exam Review
Then, you will have to re-take that section and continue to take and pass any remaining sections within 30 months of when you passed the second part of the CPA Exam. You also have limits on how long you have to take and pass the CPA Exam. Specifically, you must pass all 4 sections of the CPA Exam within a rolling ea accountant salary 30-month period. This time period starts as soon as you pass your first exam section. All in all, the steps to becoming a CPA and becoming an EA are quite similar.
This combination of skills is attractive to small businesses needing both audit and tax services, preferably coming from the same team. As for employment situations, jobs for CPAs and EAs usually take place in different environments. They actually have their own clients and can, therefore, work at home with flexible hours. On the other hand, many CPAs start off in audit firms, but as they accumulate experience, they can launch their own practices and acquire their own clients. However, comparing the taxation section of REG to that of the EA exam reveals quite a lot of overlap. In fact, this shared content can help candidates pass both exams in time.
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- And the number of questions each CPA Exam section contains varies, too.
- As such, you may think the EA title isn’t as highly regarded as the CPA title.
- Accountants who provide internal auditing services for various organizations may belong to the Institute of Internal Auditors.
- CE requirements are determined at the state levels and are cyclical (e.g. 120 hours in 3 years.) Your employer may or may not bear the cost of CPE or licensure.
- 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.
- Thousands more own rental property or earn interest or dividends from U.S. investments.
Additionally, you will petition the IRS regarding your client’s rights, privileges, and liabilities as per the US tax code. To practice as a CPA, you need to satisfy some experience requirements. Each section of the EA exam contains 100 multiple choices tested over 3.5 hours. The EA exam or Special Enrollment Examination (SEE) is a three-part IRS certified EA test offered by Prometric, a third-party examination vendor. You need a 75% pass rate for each section to qualify as a CPA and complete the exam in an 18-month window.
Who should earn the EA?
Ethical StandardsThe high ethical standards of Circular 230 bind enrolled agents to be always true in their dealings. The Circular is a set of regulations that require EAs to act ethically and professionally while performing their jobs of representing clients before the IRS. Moreover, it instills credibility and trust, which is paramount in the financial landscape. Tax preparers work with taxpayers to complete federal and state tax returns. This job usually involves a busy season, with the highest workload occurring bookkeeping from December to mid-April. In general, CPAs earn more than EAs in all career levels; however, the CPA credential requires significantly more schooling, time and up-front costs than the EA credential.
EAs have a national credential that gives them unlimited practice rights¹ to represent any taxpayer for any tax case across all IRS jurisdictions. Simply put, EAs can do all the things that CPAs can do when it comes to tax. Each section of the CPA exam needs to be passed within an 18-month window, starting from the date the first test is passed.
Consider variables like workload, stress tolerance, and mathematics ability. Here at career employer, we focus a lot on providing factually accurate information that is always up to date. We strive to provide correct information using strict editorial processes, article editing and fact checking for all of the information found on our website.
