You also have limits on how long you have to take and pass the CPA Exam. Specifically, you must pass all 4 sections of the CPA Exam within a rolling 30-month period. In fact, the overlap can help candidates pass both exams in a timely manner. Most candidates say that Part 1 and Part 3 of the EA exam are the easiest parts to pass. In fact, some candidates with tax experience report that they can pass these parts without much studying.
IRS Certified Mail: How to Handle Important Tax Notices Effectively
The best way to pass the EA exam in a timely manner is to use an EA review course and stick to a study schedule. This study schedule should include taking all three parts in two years. In contrast, you must meet educational requirements to take the CPA Exam. Partnership Accounting Yes, this requirement is equivalent to a bachelor’s degree, and many state boards also prefer you have your degree in accounting. Some professionals also specialize in certain areas such as real estate, investments, or international taxation.
TurboTax Tip:
- They’re also a great option if you need tax preparation and planning advice for an individual or business.
- Certified Public Accountants, with their broader expertise, find opportunities in public accounting firms, corporate finance, and even as corporate and executive accountants.
- Unlike many other tax professionals, EAs are empowered to represent taxpayers before the IRS on a wide range of issues, including audits, collections, and appeals.
- Stephanie Ng began her career as an investment banker at Lehman Brothers in New York and Morgan Stanley in Hong Kong.
- However, if you have a broader interest in accounting and aspire to work in various accounting-related roles, the CPA designation may be more suitable.
Plus, the CPA license generally has a much higher barrier of entry than the EA credential. CPAs know the numbers, so hiring a CPA makes sense for businesses that need trusted advisors to provide them with better and more accurate tax planning. Because of this, most EA candidates take and tax preparer vs cpa pass the exam within a few months. In contrast, most CPA candidates take 12 to 30 months to pass their exams. But EAs do have an opportunity to significantly boost their salaries during tax season. For example, one of my readers earns more during tax season than he typically earns in a year working in retail.
- This state-level regulation requires CPAs to adhere to specific guidelines and standards set by their respective states, adding a layer of complexity to their practice.
- The financial field is full of acronyms, from AIR and APR to CD and ETF.
- In most cases, candidates pick Surgent CPA Review, Becker CPA Review, Gleim CPA Review, Wiley CPAexcel, Roger CPA Review, or Yaeger CPA Review.
- And according to the above definition, CPAs also have unlimited representation rights before the IRS.
- Their ability to handle diverse financial tasks makes them indispensable in various professional settings.
- Then, you will have to re-take that section and continue to take and pass any remaining sections within 30 months of when you passed the second part of the CPA Exam.
Ideal Candidates for the CPA Exam
- Different types of investments involve varying degrees of risk including market fluctuation and possible loss of principal value.
- EAs are specialized tax experts authorized by the IRS, ideal for straightforward tax matters and representation.
- We can also help you narrow down your search to filter for EAs, CPAs, or even tax attorneys if desired.
- This variety of employment sectors highlights the dynamic nature of their professions and the numerous pathways available.
- Enrolled agent status is the highest certification given out by the IRS.
- Certified public accountants (CPAs) are licensed accountants who have completed specific education requirements and passed the CPA exam.
Then, you can apply what you learned from the EA exam to the REG section of the CPA Exam. And the number adjusting entries of questions each CPA Exam section contains varies, too. For example, most state boards require candidates to have 150 credit hours (equivalent to a bachelor’s and master’s degree) of education.
What is a Certified Public Accountant (CPA)?
- While EAs primarily focus on tax-related issues, CPAs can deal with a host of financial subjects including taxation.
- Fortunately, you can use CPA review course discounts to save on the cost of these courses.
- Their sole focus is being the go-to expert on tax laws to help clients navigate their cases with the IRS, like, for example, settling tax debt.
- You can take the exam parts hours, days, or months apart, and you can arrange them in any order you like.
- As there are nearly no prerequisites, students can pursue the EA course directly after high school, making it accessible to students at an earlier stage.
- However, if you need an independent audit of your business’s accounting records, then you will need to hire a CPA.
However, candidates with a strong background in taxation may find the EA exam equally demanding. Enrolled agent status is the highest certification given out by the IRS. They are authorized to represent taxpayers in audits, appeals, and collections. Enrolled agents, or EAs, are tax preparers the IRS has authorized to represent taxpayers. Enrolled agent clients include individuals, partnerships, corporations, estates, trusts, and any entities with tax-reporting requirements. For example, some states need 120 credit bachelor’s degree while others mostly require 150 credit college degree.
