Author: deirdreallanuyqe

A Comparison between Certified Public Accountant and Enrolled Agent

Close up of female accountant or banker making calculations. Sav

One of the thing that bother many business people is accounting and tax matter, this part in business give many nightmares because of complex process and strict deadlines involved, this is especially true where one is inept in accounting or finance. Large corporations in most cases can maneuver accounting matters with less hassle because they have accounting department stipulated with financial tasks, however, small enterprises because of their inadequate capital they have to outsource, this leaves them exposed to confusion between picking certified public account (CPA) or Enrolled Agent (EA) view here for more. This article outlines some information that can help you pick the right professional for your accounting or tax matters especially if you run a small business.

One of the distinctions between CPA and EA agents are accounting or financial services they can provide, CPA professionals are permitted to provide a variety of accounting and finance-related matters where EA can only help you in tax-related matters, their licensing authorities differ significantly, in some countries CPA agents are licensed by the state while EA professionals are licensed by the federal government see more on this page.

To become a CPA professional is a lengthy process and require someone to have a BSC degree in accounting with between 120 to 150 credit hours for one to be allowed to take a CPA certification exam, and once you pass your CPA certification you are required to work under experienced CPA professional for a given period before becoming a licensed CPA professional, but to become an EA the process is relatively easy as you are not mandated to have a degree, however, one must complete a three part exam to demonstrate their understanding in these areas taxation, ethics, and representation EA professionals are also required to renew their taxation knowledge after every three years to keep their status active read more here.

The question is who to pick between CPA and EA, it is recommended that if you run a big corporation to go for CPA professionals because big corporations are mandated by law to have an annual audit done by independent auditors CPA agents are the authorized professionals for this matter, furthermore, the complexity of accounting and finance in big businesses are beyond EA professionals, it is also good to recognize that partnership is not required to present annual financial statements so auditors are not mandatory, but if you need tax-related services consider CPA agents because of financial complexity of your business, in case you operate a small enterprise and you need assistance with filing your tax returns EA professionals are the best check this website now for this service. You can use these comparisons between CPA and EA to choose the right professional for your business.