Who Do You Pick Certified Public Accountant or 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. File tax returns and preparing financial statement is not much of a big issue for big businesses because they have an accounting department to do all these, but small businesses with inadequate capital have to hassle between certified public account (CPA) or Enrolled Agent(EA) to file their tax returns or prepare their book of accounts click here for more. This article highlights some disparities between CPA and EA professionals to assist you to choose the appropriate one for your accounting or tax-related concerns.
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 question now is who to choose between CPA and EA, if you run a big business you know very well the law demand you prepare an annual financial statement that is verified by an independent auditor, for this reasons you need to consider services of CPA agents, given that CPA professionals can provide tax-related services it is worthwhile to utilize their services because of financial complexity involved in big corporations, however, if you run a small business you are not required to audit it by law if you need services related to tax EA professionals are ideal for you. Those are some differences between CPA and EA professionals.