What You Need Know Between Certified Public Accountant and Enrolled Agent
Filling taxes and maintaining the book of accounts and other finance related matters in business is an area that stresses many businesses especially small enterprises without enough budget to have an accounting department, given government mandatory requirements to file taxes the best way to make sure they meet deadlines is to outsource this service read more here. 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 highlights some disparities between CPA and EA professionals to assist you to choose the appropriate one for your accounting or tax-related concerns.
One of the principle differences between certified CPA and EA are CPA agent is a certified financial professional who authorized to offer myriads of financial assistance, EA agent on the other hand focuses mainly on tax matters, the differences also exist in licensing where in some countries CPA are state-licensed while EA agents are licensed by the federal government, regardless of whom you pick they are both authorized to represent your business on tax-related issues more about CPA and EA here!
There are also some differences in the procedure of becoming a CPA or EA professional, to become a professional CPA agent you must have an accounting or finance-related degree with credit hours between 120 to 150 to be allowed to take a CPA certification exam, in many countries once you pass your CPA exams you have to work under the supervision of experienced and recognized CPA professionals at a given period before you are licensed, to be an EA, on the other hand, you do not need to have a degree, all that is required is to undertake a three part exam in the area of taxation, ethics, and presentation, an EA professional is also required to update their taxation knowledge after three years to ensure their status as EA agent remains active check this website for more info.
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 for this service. You can use those pointers to choose between CPA and EA for your business.