Alternatively, candidates can become an EA if they work for the IRS in a qualified position for five years. An EA is a nationally recognized professional, meaning he or she does not have to become re-designated in different states. Despite the lower salary, if you’re interested in working specifically in tax and don’t have the ability to commit 8 years to become credentialed, the EA credential is a great option.
What is an EA?
If you’re interested in going into audit, or aren’t sure which route you want to take, the CPA license is the better option. It opens doors to more career choices compared to the EA credential because CPAs can work in audit, tax, industry, government, not-for-profits or for themselves. However, as we’ll cover below, the path to becoming a CPA is more challenging than that of an EA.
How Are Enrolled Agents and CPAs Similar?
CPAs can provide a much wider scope of tax services than an EA can. What’s more, general population demand is greater for CPAs than EAs. EAs could help you work through an IRS audit or a collection problem, and they can also perform bookkeeping services that could be useful for businesses when preparing tax returns. To become a CPA a person must take 150 hours of public accounting courses, typically done at a college or university. No matter which career path you decide to take, you’ll be an elite professional in the field of accounting. Weighing every factor, such as salary, lifestyle, and adherence to your personal values will help you make the right choice for a career that provides both comfort and fulfillment.
EA or CPA: Which Will You Choose?
You’ll have to pay this fee the first time you apply to your state board, and it ranges from $30 to $200, depending on the state board. There’s also a registration fee for each section of the exam each time you take it. This fee typically runs from $30 to $150, and if you have to retake an exam section, you may have to pay it each time. Overall, you must pass each exam part within a rolling two-year window. In case you fail an EA exam part, you can take each section a total of four times during a single testing window (May 1 of one year to February 28 of the next).
- You must pass all four parts of the CPA Exam within a rolling 18-month period that begins as soon as you pass your first exam section.
- And the EA exam pass rates validate this understanding of the exam parts, as Part 2 has the lowest pass rates of them all.
- Only around 70% of the REG material relates directly to the EA exam, while the rest covers other topics such as business law.
- In case you fail an EA exam part, you can take each section a total of four times during a single testing window (May 1 of one year to February 28 of the next).
- 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.
- CPAs can focus on taxes as well as other topics that have little to do with taxes, such as corporate finance or auditing.
You can pass the EA exam in a timely manner by studying with an EA review course and sticking to a study schedule. 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. Passing the exam is much easier once you have several years of tax experience.
Average CPA Enrolled Agent Pay vs. Other Jobs
And once you’ve passed, you can apply for enrollment by filling out Form 23. The processing of your application can take 60 days (or 90 to 120 days if you’re a former IRS employee). Additionally, as part of the evaluation of your enrollment application, the IRS will conduct a suitability test.
- In this case, the benefit of the EA exam is that the sooner you can get licensed, the sooner you and your clients can enjoy your improved status with the IRS.
- EAs and CPAs are both knowledgeable, experienced professionals who are required to maintain high ethical standards.
- But they are as good, if not better, at serving clients with income tax issues.
- On the other hand, the CPA Exam has four parts and much broader content.
Experience the Surgent Difference
Jobs paying $58,500 or less are in the 25th percentile range, while jobs paying more than $83,000 are in 75th percentile. According to ZipRecruiter.com, the average annual salary for an Enrolled Agent as of December 2021 was $59,020. Enrolled agents are more specialized than CPAs, as their professional skills center on taxes for individuals and businesses. The federal government oversees the licensing of EAs and with this title, EAs can represent clients before the IRS. Almost every aspect that relates to taxes can be handled by an EA, from estate taxes and retirement taxes to corporate taxes. EAs can represent individuals and businesses with the IRS if they are facing an audit.
- Once you click “continue,” you will be brought to a third-party website.
- CPAs help clients set and achieve financial goals through money management and financial planning.
- Additionally, EAs can also provide tax advice, tax return filing and more.
- Additionally, the EA credential is more client-focused, with a variety of career paths.
- Almost every aspect that relates to taxes can be handled by an EA, from estate taxes and retirement taxes to corporate taxes.
Enrolled Agent vs. CPA: Which Certification is Better for You?
- Be sure to consider additional factors alongside salary when planning your professional path.
- The CPA Exam used to have a stricter timeline than the EA, with scheduling “windows” throughout the year.
- Additionally, you will need to decide how much time, money, and energy you must put into meeting the requirements.
- CPAs have a broader knowledge base in all facets of accounting while EAs only focus on tax.
- Interested in learning more about the salary outlook for accountants?
- Learn more about Surgent CPA Review, Surgent EA Review, and Surgent’s other exam review courses.
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 enrolled agent salary in audit firms, but as they accumulate experience, they can launch their own practices and acquire their own clients. The EA credential requires passing a three-part exam administered by the IRS before applying for licensure.
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Simply put, EAs can do all the things that CPAs can do when it comes to tax. You can’t take the exam in March or April every year because the makers of the test are updating it. Otherwise, you can take the exam parts at any other time and in any order you like. Each exam part lasts a total of four hours, including a short break. Regarding accounting credentials, the CPA and EA are both good options. Plus, they each have pros and cons and distinct effects on your long-term career.
While there could be exceptions to the rule, CPA licensure generally has a much higher barrier of entry than the enrolled agent credential. A CPA needs to have a 4-year degree from a qualified university, then pass the CPA Exam in order to earn the CPA credential. CPAs know the numbers, so hiring a CPA makes sense for businesses that need trusted advisors to provide them https://www.bookstime.com/articles/credit-memo with better and more accurate tax planning. In most cases, candidates pick Surgent CPA Review, Becker CPA Review, Gleim CPA Review, Wiley CPAexcel, Roger CPA Review, or Yaeger CPA Review. Fortunately, you can use CPA review course discounts to save on the cost of these courses. Once you pass the EA exam, you only need to take a few more steps to receive the designation.
