After you pass the CPA Exam, you will probably also have to take the ethics exam, which usually costs $130. Finally, you must pay the CPA licensing fees, the mid-range of which comes to about $150. And yes, there are also a few other CPA Exam fees you’ll need to budget for, depending on your situation and testing track record. Additionally, you must work in an accounting position for 1 to 2 years to meet the CPA work experience requirement. Additionally, the questions on the REG CPA Exam section are harder than those on the EA exam.
EA vs CPA: Comparing the Requirements, Salaries, and Careers of Enrolled Agents and CPAs
However, the IRS allows candidates to take the EA exam in any order. Each one is printed with your name, account number and bank routing number. That’s all the information a thief needs to create new checks and make fraudulent payments. There’s no wrong answer when it comes to deciding whether it’s best for you to study to become a CPA or an EA. Both are prestigious positions that will give you a lot of additional income per year. When you look at the similarities and differences between an EA and a CPA, you can see that either one will help you achieve your professional goals.
CPA Salary Ranges
EAs are not as common but as clients recognize their specific skills, the demand is growing. The decision depends on a lot of different factors, such as deciding what kind of colleagues and clients you https://www.bookstime.com/ want to work with and which areas of accounting interest you the most. It’s helpful to compare the differences between an EA and a CPA so you can decide which one is the best choice for your career.
EA vs CPA: Which Accounting Certification Is Best for You?
EAs are federally credentialed tax professionals who can legally represent taxpayers before the IRS. Given this definition, it makes sense for accountants interested in working specifically in tax to become EAs. CPAs have a broader knowledge base in all facets of accounting while EAs only focus on tax. Not only is this reflected in their background, even their credentials limit their scope.
Scheduling the Exam
Conversely, almost everyone must work hard to pass the second part–Businesses– so it’s naturally considered the hardest. If you’re interested in professional help with your taxes, you might be wondering what types of specialists there are and which one you need. An enrolled agent and a certified public accountant are both tax experts, but when you should work with an EA vs CPA differs based on your needs.
If you pursue the enrolled agent designation via the EA exam, you don’t have to meet an experience requirement. You’ll receive your exam results immediately, and once you’ve passed, you can apply for enrollment. The IRS explains that processing your application may take as long as 60 days ( days if you’re a former IRS employee). Also, as part of their evaluation of your enrollment application, the IRS will conduct a suitability test that includes a review of your personal tax compliance. The CPA license takes a significantly bigger commitment than the EA credential and is specific to each individual state.
According to ZipRecruiter.com, the national average salary for an Enrolled Agent as of February 2023 is $60,725. Jobs paying $47,500 or less are in the 25th or less percentile range, while jobs paying more than $70,500 are in the 75th or more percentile range. As you weigh the two options, consider differences in salary, job function and career path.
How Much Do CPAs Make at the Big Four?
However, you can specialize in an area like tax preparation or tax resolution. That being said, CPAs who also specialize in tax should think about earning the EA title to further demonstrate their expertise. Most candidates say that Part 1 and Part 3 of the enrolled agent salary EA exam are the easiest parts to pass. In fact, some candidates with tax experience report that they can pass these parts without much studying. EAs are federally authorized to represent taxpayers before the IRS and have unlimited representation rights.
- In this path, you can work at any company or industry and expect to make an average salary of $68,000 – $125,000³.
- The IRS grants EAs unlimited representation rights on a federal scale.
- Given their level of responsibilities, CPAs are generally on the higher end of this salary range.
- The EA questions are more in-depth but less varied and complicated, so they are easier.
- They’re also a great option if you need tax preparation and planning advice for an individual or business.
- However, as we’ll cover below, the path to becoming a CPA is more challenging than that of an EA.
Special Enrollment Exam (EA Exam) vs CPA Exam
To become a CPA, students must complete 150 hours of college credit, with a specific number of units covering accounting and business concepts. Each section of the CPA exam has around a 50% pass rate, and the rate for passing all four parts of the exam in a row is between 10 and 20%. CPAs must then gain a certain amount of work experience hours, depending on their state, under direct supervision of a CPA. Between school an work experience requirements, the time commitment to become a CPA is around 6-7 years.