There is nothing bothers business people especially small businesses that do not have a finance and accounting department than preparing financial statements and taxes, the complexity and strict timelines involved in this area can be frustrating and because they lack finance or accounting fundamental the alternative is to hire a reliable and trustworthy professional in the field. People normally turn to either a certified personal accountant (CPA) or enrolled agent (EA) to help them with financial matters, but a lot of business people especially small businesses find it confusing when it comes to choosing between CPA or ER agents because they are unaware of the distinction between the two professionals despite both operating in the financial sector. CPA is more popular than EA making many people overlook the roles of EA which can be reliable particularly to small businesses to help you learn about the two we have prepared some information you can use to get more knowledge about CPA and EA professionals.
The discrepancy between the two CPA and EA professionals is that CPA can perform extensive and complex financial related tasks compared to EAs who are mainly specialized in tax-related tasks also important to note is that a slight difference exists where EA is licensed by the federal government whereas CPA professionals are licensed by the state, but, more importantly, both professionals are allowed by the government to help people and business with their tax preparations.
The other vital difference between CPA and EA professionals is the process of their qualification, to become a CPA you are required to first have a BSc degree in accounting or finance to be accepted to take CPA certification exams, and once you pass you are required by law to work for a given period with a qualified and experienced CPA professional, however, to become EA you are only required to take a three-part exam in the area of taxes, ethics, and representation a degree is not required, however, EAs are required to renew their education in taxes as well as ethics after every three years to ensure their license remains active.
The other important difference exists in the financial tasks each professional does, in the case of CPA professionals they are authorized to help big corporations and non-governmental organizations to prepare their financial statements which they are mandated to publish for the public, CPA also offers other financial advice and assistance in areas there are complex financial investments, therefore, they can come in handy even for partnerships and small businesses that have complex investments and they need financial assistance to help them in decision making and planning for their businesses, however, EA are only mandated to help businesses and people to advise, prepare and file tax-related matters and they are most reliable for these tasks because they are always updated with the current regulations. That is what we thought might be important to know between CPA and EA.