Accounting jobs are available nationwide, offering flexibility in choosing work locations with opportunities in urban and rural settings. You can combine both credentials and further improve your career choices if you’re up to it. If you’re dreaming of making your fortunes in the financial sector, you should seriously consider a career as either a CPA or EA. EAs approach tax issues holistically and understand the tax code perfectly compared to CPAs.
The EA designation is a federal credential.
The larger the company, the higher the pay for a given role, and the better defined your career path will be. But the fact that smaller firms have to specialize can be both a blessing and a curse for Enrolled Agents. For example, a small agency that specializes in escrow accounting may not need an Enrolled Agent. On ea accountant salary the other hand, a small company that specializes in complex tax situations would really benefit from having one or two EAs on staff.
Comparative Table – CPA vs EA (Enrolled Agent)
However, the salary of a CPA will quickly exceed the salary pace of an EA. This is because the income potential for enrolled agents tends to taper out over time. By comparison, a CPA can have a number of opportunities for earning money. For instance, CPAs working for conglomerates or in a CPA firm could easily bookkeeping bring in six-figure salaries. CPA vs EA debates are a common occurrence in the life of an aspirant seeking a job in the sphere of accountancy.
What Is a Certified Public Accountant (CPA)?
By comparison, a Certified Public Accountant must meet various requirements. These requirements include passing all parts of the CPA exam after earning a college degree. Additionally, individuals interested in becoming CPAs must work for a specific number of hours under a licensed CPA. As a CPA, individuals may perform the same tasks as those of a public accountant along with reviewing statements, conducting audits, and representing clients in matters related to the IRS.
- As you are working to gain the CPA credential, employers will know that you are serious about pursuing a career in accounting.
- However, you can specialize in an area like tax preparation or tax resolution.
- The existence of a fiduciary duty does not prevent the rise of potential conflicts of interest.
- Welcome to today’s comprehensive and in-depth analysis of CPA vs EA education, roles, licensing, and salaries.
- On the other hand, many CPAs start off in audit firms, but as they accumulate experience, they can launch their own practices and acquire their own clients.
- As an Enrolled Agent you have opportunities to increase your salary by charging a fee for representation services, tax advice, or opinions on tax matters.
Only around 70% of the REG material relates directly to the EA exam, while the rest covers other topics such as Airbnb Accounting and Bookkeeping business law. Regarding accounting credentials, the CPA and EA are both good options. Plus, they each have pros and cons and distinct effects on your long-term career.