What You Need Know Between Certified Public Accountant and Enrolled Agent
Filling taxes and maintaining the book of accounts and other finance related matters in business is an area that stresses many businesses especially small enterprises without enough budget to have an accounting department, given government mandatory requirements to file taxes the best way to make sure they meet deadlines is to outsource this service read more here. 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 outlines some information that can help you pick the right professional for your accounting or tax matters especially if you run a small business.
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 these comparisons between CPA and EA to choose the right professional for your business.