Discussion:CPA or enrolled agent?
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Discussion Forum Index --> Tax Questions --> CPA or enrolled agent?
| 21 July 2008 | |
| I have four years of seasonal experience with H&R Block and would like to eventually start my own tax practice someday focusing on individuals and small businesses. However, I would like to get more experience with higher-end returns at an accounting firm and pursue either the CPA or the enrolled agent certification. I am trying to decide which certification is best for my situation. I have met all the educational requirements for both exams. I believe the CPA certification is more prestigious and may help more when marketing myself to potential employers and clients. However, I have heard that it is much more difficult than the EA exam and it covers areas in which I am not interested (like auditing). The EA certification is tempting because it would allow me to focus exclusively on taxation. Any other thoughts that would help me with my decision would be appreciated. | |
| 21 July 2008 | |
| A CPA can do everything in acctg. An EA does tax work and can't issue financial statements. | |
| July 21, 2008 | |
| http://www.taxalmanac.org/index.php/Discussion:EA_vs._CPA_exams
http://www.taxalmanac.org/index.php/Discussion:Become_an_enrolled_agent http://www.taxalmanac.org/index.php/Discussion:EA_vs._CPA_exam Try these, or search if I screwed up the links... Good luck. | |
| July 21, 2008 | |
| Without trying to recreate those other threads, I'll tell you this (and I'm neither, btw). If you want to do small biz stuff and taxes, the EA exam will be the most useful assuming you have an accounting degree from a decent school and can do accounting. That said, had I not been in the Chicago area with a degree from Notre Dame, that CPA cert would have been nearly mandatory to establish the creds. Around here, if you're ND, you're good. So it depends on your school reputation, where you live/work in relation to that, and what you want to do. I sat for the CPA and passed the accounting parts and got into taxwork and small biz and never looked back. I studied for the EA exam but decided it's more about facts than concepts, testing the wrong things in my opinion. So until I'm forced to, I'll skip it. When and if I have to take something, it'll be the EA exam. | |
Kmikeburns (talk|edits) said: | 21 July 2008 |
| If you plan on representing people either the EA or CPA is needed. Although attorneys also can do that. There are some exceptions if you prepare the return.
It is my understanding that you only need the CPA if you are doing certified audits. In other words you can prepare financial statements as long as you don't call them certified or audited. As an EA you have to answer to your clients and are required to follow certain rules set out by the IRS in circular 230. As a CPA you also have to answer to your state society. As mentioned above there are several articles on this forum regarding the differences. I think you will find this forum VERY helpful whichever way you go. Someone said that some people have one year experience 20 times while others actually have 20 years experience. You can gain much by following experienced people on this site. | |
| 21 July 2008 | |
| Kmikeburns said "It is my understanding that you only need the CPA if you are doing certified audits. In other words you can prepare financial statements as long as you don't call them certified or audited".
That's not entirely correct. There are 50 states and each of them have different policy governing the practice of accountancy - that includes the report language acceptable by nonlicensees when issuing a financial statement, as well as tax preparation. I suggest you refer to your respective State Board of Accountancy's policy as to what non-licensees are permitted to do. But getting back to the original poster's concern - if all you're interested in doing is preparing tax returns - then you should consider taking the EA exam. If you wish to obtain more facts regarding that you should contact http://www.naea.org | |
Death&Taxes (talk|edits) said: | 21 July 2008 |
| Sam, you wrapped everything up into a neat nutshell. Muchas gracias | |
