When you’re looking for tax help, you’ll often see two sets of letters: CPA and EA. Both CPAs (Certified Public Accountants) and EAs (Enrolled Agents) are licensed professionals who can handle taxes. But the credentials mean different things, and the level of service they provide can vary.
Here’s a clear breakdown to help you decide what’s best for you.
CPA vs. EA key takeaways – CPAs have more education, pass a tougher exam, and offer broader financial services (beyond taxes) – EAs focus solely on taxes and are federally licensed by the IRS – For complex financial needs, a CPA provides deeper expertise and strategic advice |
What is a CPA?
A CPA is a Certified Public Accountant, a credential issued by a state board of accountancy. To become a CPA, you need to meet strict educational and experience requirements. Most states require at least 150 credit hours of education (that’s the equivalent of a bachelor’s degree plus some graduate-level work) and passing the Uniform CPA Exam, a rigorous four-part test with a pass rate of just 45-55%. Once licensed, CPAs also need to maintain their credentials with continuing education each year.
CPAs do more than taxes. They’re qualified to provide a wide range of accounting services, like financial planning, audits, and business consulting. They’re often the go-to for individuals and businesses with more complex financial needs.
You may also be interested in: Five areas where small business owners should seek CPA services outside of tax season
What is an EA?
An EA is an Enrolled Agent. This credential comes directly from the IRS. Enrolled Agents specialize in taxes and are federally licensed. That means they can represent clients in any state before the IRS, just like a CPA.
EAs must either pass the Special Enrollment Exam (SEE) or have previous IRS work experience. The SEE focuses solely on tax law, and while it’s challenging, it’s not as broad as the CPA exam. EAs must also complete continuing education to keep their credentials up to date.
5 key differences between a CPA and an EA
- Education: CPAs need at least 150 credit hours (about five years of college-level education). EAs have no formal education requirement.
- Exams: The CPA exam is more challenging and covers a broader range of accounting topics. The EA exam is focused solely on taxation.
- Licensing: CPAs are licensed by state boards; EAs are licensed by the IRS
- Scope: CPAs can handle taxes, audits, financial planning, and business consulting. EAs stick to taxes
- Representation: EAs can represent clients in all states. CPAs can represent clients in the state where they’re licensed.
Which credential should you trust for your taxes?
Both CPAs and EAs can prepare your taxes. The key difference is in the depth of expertise and the range of services. If you’re an individual with a simple tax return, an EA can likely handle it. But if you’re a business owner, have investments, multiple income streams, or simply want more comprehensive financial advice, a CPA is the better choice.
Think of it like this: if you’re building a simple shed, you might call a handyman (an EA). But if you’re building a house, you want a licensed contractor (a CPA).
Does your business need a bookkeeper, CPA, or outsourced CFO?
FSA’s CPAs offer broad knowledge, extensive experience, and strategic insights for business owners
Our CPAs bring more than just tax know-how. We offer a full suite of financial services, from tax strategy to outsourced CFO services and business advisory. Because they’ve met rigorous educational and experience standards, you get a higher level of insight and service.
We’re here to give you peace of mind and make sure your finances are set up for success. Get in touch to schedule a consultation.