What You Need Know Between Certified Public Accountant and Enrolled Agent
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.
Some of the main differences between CPA and EA professionals exist in services they can offer, a CPA agent is authorized to provide a variety of accounting and other financial related matters, however, EA agents are mostly confined to tax-related services, it is also worth noting that CPA and EA professionals also vary in terms of their licensing, in some countries CPA agents are licensed by the state where EA professionals are licensed by the federal government visit this page for more info.
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 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.
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