Authority requires all businesses to pay and file their taxes on a specified timeline some businesses are also required to publish their financial statements to the public, these compliances can weigh heavily on a business because of the complexity and sensitivity of the financial process involved, therefore, a need for skilled and qualified individuals to do thorough and reliable financial preparation as mandated by the taxman. The most reliable and easiest way to get assistance with your business finances is to hire services from either certified personal accountants (CPA) or enrolled agent (EA) who are legalized by the authority to help businesses prepare their financial statements and taxes, however, a considerable number of people do not find it easy to select between CPA or EA for financial help while these two professional differ in terms of the financial role they play they can both provide financial assistance to your business but the specificity of financial tasks you need to be completed will determine who to choose between the two professionals. If you ask the majority of business who they call for financial assistance most will say CPA, but the truth is some financial tasks such as tax preparation can be performed by EA agents leaving CPA to deal with more complex financial matters but help bring clarity between the two the article has gathered some information you can use for more insight.
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.
Another thing you need to know is that to become a CPA certified is a lengthy and can be a tedious process to many, one is required to have a BSC degree in accounting to be enrolled in a CPA certification exams, and once you succeed in your CPA exams you are required to work with an experienced certified CPA professional for a given period so you can get CPA license, but to be EA a degree is not a compulsory all you need is to pass three-part exams to demonstrate your knowledge and understanding in the field of taxation, ethics, and representation, however, as an EA you are mandated to renew your knowledge in taxations and ethics after every 3 years to keep your status active as an EA.
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. Those are the major difference between CPA and EA professionals.