Tax professionals, like doctors and attorneys, have many specialized acronyms and designations. Two of the most recognized in the finance world are enrolled agents (EAs) and certified public accountants (CPAs).
This guide will provide an in-depth look at the CPA vs. EA designations. We’ll cover their roles, key differences, and the education and credentials required to become an EA or CPA.
What is an enrolled agent (EA)?
An enrolled agent is a tax professional that provides tax planning, tax advice, and also files tax returns. EAs are qualified to focus on tasks like tax collections, tax audits, and tax appeals.
Becoming an EA requires in-depth knowledge of:
- Entity and individual income tax
- Self employment tax
- Inheritance, gift, nonprofit, and payroll taxes
EAs have to pass a licensing exam, and upon licensing, they’ll be recognized as an EA by the federal government.
While there’s no formal degree or specific work experience required to become an enrolled agent, passing the 3-part Special Enrollment Examination (SEE) requires a comprehensive understanding of tax law. Many aspiring EAs pursue formal education or specialized training programs to prepare for this challenging exam. After passing the SEE, you must maintain 72 hours of continuing education (CE) credit every three years.
If you choose the enrolled agent route, you can expect an annual salary of anywhere from $37,690 to $107,660, according to the U.S. Bureau of Labor Statistics (BLS).
What is a certified public accountant (CPA)?
CPAs, or certified public accountants, are licensed professionals who offer a wide range of financial services, including tax preparation and planning, auditing, financial accounting, and consulting. While CPAs can handle many of the same tax-related tasks as an EA, they also possess expertise in other areas of finance and business.
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 CPA differ from state to state, so be sure to check the laws and regulations in your area.
However, generally speaking, CPAs must have at least a bachelor’s degree in a related field, such as accounting, finance, or business, and 150 semester hours of college coursework. They’ll also need at least one year of relevant work experience. CPAs also must meet a continuing education requirement, which varies by state.
As you might expect, the higher level of education, more rigorous licensing, and necessary work experience pay off for a CPA vs. an EA in terms of salary. According to the BLS, the annual salary for accountants (including CPAs) ranges from $50,440 to $137,280.
EA vs. CPA: Key differences
Here’s a side-by-side look at what it means to be a CPA vs. an EA.
| | Enrolled Agent (EA) | Certified Public Accountant (CPA) |
| Job duties | Tax preparation, tax planning, tax resolution, IRS representation | Accounting, auditing, tax preparation, tax planning, financial planning, business advisory services |
| Do they file tax returns? | Yes | Yes |
| Do they do tax planning? | Yes | Yes |
| Do they represent clients before the IRS? | Yes | Yes |
| Do they prepare audited financial statements? | No | Yes |
| Required education | No formal education requirement | Bachelor’s degree; 150 semester hours of college coursework |
| Examination requirements | Pass 3-part SEE exam | Pass 4-part CPA exam |
| Experience requirements | No formal requirement | Varies by state, but typically 1-2 years of relevant work experience |
| Licensing authority | Federal government (IRS) | State government |
| Annual salary range (BLS) | $37,690 to $107,660 | $50,440 to $137,280 |
When do people hire an EA vs. a CPA?
As a client, who does it make more sense to hire—an EA or a CPA? EAs and CPAs are highly qualified professionals with expertise in financial matters. However, their focus and areas of specialization differ, making them suitable for different needs.
EAs are tax specialists with unlimited rights to represent taxpayers before the IRS. They can assist with tax planning and preparation and resolution of tax issues, such as audits, collections, and appeals.
CPAs have a broader scope of practice that extends to auditing, financial accounting, and business consulting. While many CPAs offer tax services, they might specialize in specific types of tax assistance.
Ultimately, the decision comes down to a person’s financial goals and the complexity of their tax situation.
Should you obtain both EA credentials and CPA licensure?
Obtaining both an EA and CPA designation can be great for your career trajectory, but both require significant study hours and exam prep. Not to mention the experience requirement for your CPA license.
If you already have the education and work experience to qualify for CPA licensure, then it makes the most sense to stay on that path. Also, the education, experience, and study necessary to become a CPA encompasses the necessary knowledge to become an EA—you would just need to take the exam.
If you have all the requirements to become an EA, this may be the quickest way to start your accounting career. The EA exam focuses heavily on the US tax code, which prepares you for the Tax and Regulation portion of the CPA exam if you choose to go this route.
Looking for a job as an EA or a CPA?
Now that you understand the ins and outs of becoming a CPA vs. EA, which do you think is right for you? If you decide to pursue either designation, Intuit has both EA and CPA jobs available. You can work on campus if you’d like to or enjoy the flexibility of one of our work-from-home opportunities.
If either of these don’t look like the right fit, there’s more information about other tax jobs we have available.
This content is part of a larger collection of resources on becoming a tax preparer. Anything you may want to know about the process, salary expectations, work expectations, and more can be found in the guides within this collection.