Many people can run their business efficiently without much assistance from other professionals but the area of finance and accounting gives the majority a nightmare because of its sensitivity and complexity involved and because they are inept in financial matters they are forced to look for a qualified professional in finance or accounting. 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.
The other difference occurs in the process of becoming a CPA or an EA professional, to acquire a CPA license you first need to get CPA certification which you receive after you complete your CPA exams and working within a particular time with a qualified and experienced CPA professional one thing that limits many from becoming CPA is that one is required to have a BSc degree in finance or accounting to be allowed to take CPA certification but to qualify as EA degree is not a requirement all is needed is to partake a three-part exam in ethics, tax, and representation to make sure EAs remain updated with current taxation laws and uphold their ethics they must retake their studies after every three years to keep their license active.
The role each professional plays set them apart, a CPA do a variety of financial tasks such as tax preparations, preparing financial statements, bookkeeping, financial advice among other things, therefore, they come in handy for major corporations that are required by government to present their financial statements to the public that must be audited by a reliable CPA firm, CPA can also help small businesses and partnerships that have complex financial investments, but EAs are mandated by authorities to assist businesses and people to assist in any tax-related matters. Those are few discrepancies between CPA and EA that can help you know who to choose in the future for your financial matters.