Difference Between CPA and EA (With Table)

CPA and EA seems similar as a profession, but differ in its fucntionality. It is vital to know about the licensed tax profession to get a good career path. If you are a tax professional, then develop your profession in accounting by understanding the difference between CPA and EA. These certification helps to get promoted to a higher position in finance and accounting. The greater the knowledge, will greater your earnings.

CPA vs EA

The difference between CPA and EA is their level of difficulty in cracking the exam. It takes more time to crack the exam to become a CPA agent but, The EA takes much less compared to the CPA. Both CPA and EA give you representation rights. Both are licenses by different organizations. The CPA licenses by States authority. The EA licenses by the IRS. The CPA has a high difficulty level when compared to the EA examination.

CPA stands for (Certified Public Accountant) needs 150 hours to study and must clear four-part of the exam conducted by AICPA. It is a state-level examination. Every state has different requirements for eligibility. It has 150 hours a semester and must works under a senior for around 1-2 years to get the license. It is not a degree or a diploma program. A completion certificate provides at the end. CPA aims to improve the skills in your business career.

EA stands for an (Enrolled Agent). You need to pass all three parts of the exam conducted by the IRS. Then you can apply for the license. It takes 1-3 months to become a certified enrolled agent. Nearly 71%of of candidates clear the enrolled agent exam. The enrolled agents can also perform accounting tasks. The EPA exam took 3.5 hours. In the EA exam, the part two segment is difficult among the three sections.

Comparison Table Between CPA and EA

Parameters of ComparisonCPAEA
CreditsCPA more credits in all the levels.EA has fewer credits compared to CPA.
TimeCPA needs 8-12 months to clear.EA needs 1-3 months to clear.
Sections in examThe CPA has four partsThe EA has three sections.
Difficulty levelThe CPA is high difficult compared to EA.The EA is less complex compared to CPA.
Expected salaryThe CPA certified agent earns around $60,000 in a yearThe EA agent earns nearly $40,000 in a year.

What is CPA?

The CPA( Certified Public Account) is a state-level licensed tax advisor. The CPA-certified professions are Auditors, Accountants, Business advisors, Corporate accountants and executives, Tax consultants, Forensic accountants, and financial planners. The CPA exam conducts by AIPCA( American Institute of Certified Public Accountants). It takes eight to twelve months to crack the exam. The CPA is more difficult when compared to the EA examination.

The CPA exam has four parts. Auditing and Attestation (AUD), Business Environment and Concepts (BEC), Financial Accounting and Reporting (FAR), and Regulation (REG) are the four sections in the CPA exam. It has no limit in attempts. You take as much as you can if you failed. Financial Accounting and Reporting (FAR) is the hardest part of the CPA exam. The certified CPA agent works in organizing, examine, prepare and provide financial and accounting services.

Every state has its requirements to apply for CPA. The basic eligibility for CPA is a bachelor’s degree with two years of experience in public accounting service. Germany considers the best place to study accounting and finance. Ethics, management, and finance are the main topics covered by the CPA exam. The scale range of CPA is 100-900, and 540 is the pass range of CPA examination.

What is EA?

The EA( Enrolled Agents ) are accounting professionals. They can advise on tax payments, files on tax returns for individuals, partnerships, estates, IRS audits, and appeals. The difficulty might depend on the effort to crack the examination. PTIN are the passing scores of the Enrolled agent’s exam. Many online sites help to clear the EA exam, and they provide free materials for your preparation. The EA exam establishes in the year 1884.

The EA exam has three parts. It conducts by IRS( Internal Revenue Service). Focusing on Individuals, Businesses, and Representation, Practices and Procedures are the three parts of the EA exam. Each section carries 100 questions, and the exam took 3.5 hours long. Unlike CPA, it doesn’t need any bachelor’s degree as eligibility criteria. The exam is officially known as Special Enrollment Examination (SEE).

According to a census, the net revenue of an enrolled agent is 5180 U.S. dollars in 2018. The candidate needs to pass the three-part of the exam as well as the background check. The enrolled agent may also be a member of the National Association of Enrolled Agents. Before starting their practices, the enrolled agents may work as IRS agents to gain experience in the field. The EA agent can work IRS agent and get better experience.

Main Differences Between CPA and EA

  1. The CPA certified has high credits in all the levels, and the EA agent has fewer credits.
  2. The CPA candidate needs 8-12 months to clear, and the EA candidate needs 1-3 months to crack.
  3. The CPA examination has four parts, and the EA examination has three sections.
  4. The CPA exam is high in difficulty compared to EA, and the EA is less complex compared to CPA.
  5. The CPA certified agent earns around $60,000 in a year, and the EA agent earns nearly $40,000 per year.

Conclusion

Both CPA(Certified Public Account) and EA( Enrolled ) have their unique difficulty levels and credentials. Both the exam needs the effort to increase your scores and credits. The CPA makes you earn more money than EA. The CPA-certified agent can work as an accountant, financial officer, auditor, and consultant. The EA-certified agent can work as a tax specialist and represent to IRS. They both helps to improve skills in your business career.

References

  1. https://psycnet.apa.org/record/2007-02153-002
  2. https://search.proquest.com/openview/01ad9e4f636c4e0eb8f7897f21b72da0/1?pq-origsite=gscholar&cbl=41798
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