What You Need Know Between Certified Public Accountant and Enrolled Agent
Filling taxes and maintaining the book of accounts and other finance related matters in business is an area that stresses many businesses especially small enterprises without enough budget to have an accounting department, given government mandatory requirements to file taxes the best way to make sure they meet deadlines is to outsource this service read more here. Large corporations in most cases can maneuver accounting matters with less hassle because they have accounting department stipulated with financial tasks, however, small enterprises because of their inadequate capital they have to outsource, this leaves them exposed to confusion between picking certified public account (CPA) or Enrolled Agent (EA) view here for more. In this guide we identify some differences between CPA and EA to help you pick the right professional for your accounting or taxation matters.
Some of the main differences between CPA and EA professionals exist in services they can offer, a CPA agent is authorized to provide a variety of accounting and other financial related matters, however, EA agents are mostly confined to tax-related services, it is also worth noting that CPA and EA professionals also vary in terms of their licensing, in some countries CPA agents are licensed by the state where EA professionals are licensed by the federal government visit this page for more info.
To become a CPA professional is a lengthy process and require someone to have a BSC degree in accounting with between 120 to 150 credit hours for one to be allowed to take a CPA certification exam, and once you pass your CPA certification you are required to work under experienced CPA professional for a given period before becoming a licensed CPA professional, but to become an EA the process is relatively easy as you are not mandated to have a degree, however, one must complete a three part exam to demonstrate their understanding in these areas taxation, ethics, and representation EA professionals are also required to renew their taxation knowledge after every three years to keep their status active read more here.
The question is who to pick between CPA and EA, it is recommended that if you run a big corporation to go for CPA professionals because big corporations are mandated by law to have an annual audit done by independent auditors CPA agents are the authorized professionals for this matter, furthermore, the complexity of accounting and finance in big businesses are beyond EA professionals, it is also good to recognize that partnership is not required to present annual financial statements so auditors are not mandatory, but if you need tax-related services consider CPA agents because of financial complexity of your business, in case you operate a small enterprise and you need assistance with filing your tax returns EA professionals are the best check this website for this service. Those are some differences between CPA and EA professionals.