One of the thing that bother many business people is accounting and tax matter, this part in business give many nightmares because of complex process and strict deadlines involved, this is especially true where one is inept in accounting or finance. Big businesses generally do not struggle much with accounting and tax matters because they have a dedicated accounting department for this, however, small businesses struggles to choose between certified public account (CPA) and Enrolled Agent (EA) to assist them with accounting and tax matters. This article highlights some disparities between CPA and EA professionals to assist you to choose the appropriate one for your accounting or tax-related concerns.
One of the principle differences between certified CPA and EA are CPA agent is a certified financial professional who authorized to offer myriads of financial assistance, EA agent on the other hand focuses mainly on tax matters, the differences also exist in licensing where in some countries CPA are state-licensed while EA agents are licensed by the federal government, regardless of whom you pick they are both authorized to represent your business on tax-related issues more about CPA and EA here!
There are also some differences in the procedure of becoming a CPA or EA professional, to become a professional CPA agent you must have an accounting or finance-related degree with credit hours between 120 to 150 to be allowed to take a CPA certification exam, in many countries once you pass your CPA exams you have to work under the supervision of experienced and recognized CPA professionals at a given period before you are licensed, to be an EA, on the other hand, you do not need to have a degree, all that is required is to undertake a three part exam in the area of taxation, ethics, and presentation, an EA professional is also required to update their taxation knowledge after three years to ensure their status as EA agent remains active check this website for more info.
The confusion may arise when it comes to picking between CPA or EA, but in case you have a big business the law expects you to prepare and present a financial statement annually which must be verified by an impartial auditor, this is why you need the services of CPA agent, it is also good to hire them for tax-related matters because of the complexity of financial matters in big corporations, but the small enterprise is not required to audit their accounts, but they have to file their tax returns a service they can receive from EA professionals. You can use those pointers to choose between CPA and EA for your business.