A Comparison between Certified Public Accountant and Enrolled Agent
Government requires businesses to file their tax returns on time and prepare annual financial statements for large corporations, however, most small business lack enough capital to maintain an accounting department to perform these tasks, this makes them seek these financial services from qualified financial professionals learn more here. File tax returns and preparing financial statement is not much of a big issue for big businesses because they have an accounting department to do all these, but small businesses with inadequate capital have to hassle between certified public account (CPA) or Enrolled Agent(EA) to file their tax returns or prepare their book of accounts click 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.
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!
It also good to know that the process of becoming a CPA or EA professional varies to a great extent, becoming a CPA professional is relatively lengthy and the requirements are quite high, one needs to have a Bsc degree in accounting or finance-related course with about 120 to 150 credit hours to be allowed to sit for a CPA certification exam, once this is completed it is mandatory to work under the supervision of qualified and experienced CPA profession for a given amount of time before a license is issued, however, to become an EA a degree is not a requirement, all that is needed is to pass a three part exam in the area of taxation, representation, and ethics, to keep their status active, EA professionals are required to renew their taxation knowledge after every three years view here for more about EA and CPA agents.
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. You can use these comparisons between CPA and EA to choose the right professional for your business.