A Comparison between Certified Public Accountant and Enrolled Agent
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. 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 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 homepage.
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 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. You can use these comparisons between CPA and EA to choose the right professional for your business.