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Some states also require a certain number of hours worked under the direct supervision of a CPA before allowing you to take the exam. You must also pass the daunting CPA Exam that has an extremely low pass rate. The Enrolled Agent credential is a nationally recognized certification offered by the IRS for tax professionals. As you weigh the two options, consider differences in salary, job function and career path. And unenrolled preparers that conduct tax resolution-style marketing to service the unfiled return market are doing quite well. So I’m not in any way trying to construe tax prep-only business models as a bad thing.
The amount of time you’ll spend studying for the EA exam is of equal importance. However, if you are very familiar with the tax code, you could sufficiently prepare for the exam in a matter of weeks (about 4-7). But if you need further tax law training, your entire EA review could last at least 4 months. Therefore, you will need to make a commitment of time and effort to pass the EA exam, but it is less of a commitment than you’d make to finish other professional exams. For example, the CPA, CIA, and CMA exams can take 1-2 years to pass.
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If you start with the CPA Exam and struggle with the REG section, you can temporarily change course by passing the EA exam and earning the EA designation. Then, with your improved understanding of tax accounting, you can come back to REG, pass the CPA Exam, and, ultimately, get the CPA license as well. Most people consider Part 1 (Individuals) and Part 3 (Representation, Practices, and Procedures) to be the easiest.
- If you’re an experienced 1040 preparer, then Part 1 of the SEE should be a cake walk.
- With such regulated deadlines, relying on a CPA review course and studying consistently are essential for CPA Exam success.
- In fact, you can schedule and sit for the exam as soon as you obtain a Personal Tax Identification Number (PTIN), even if you are still in college.
- In contrast, you must meet educational requirements to take the CPA Exam.
- Because the CPA Exam is so expensive to take, candidates usually invest quite a bit more in their review courses to better pass the exam on the first attempt.
Therefore, CPAs who specialize in tax should consider obtaining the EA so they can display their tax expertise. Otherwise, the testing window runs from May 1-February 28, and you can take the exam any time within that window. You can take the exam parts hours, days, or months https://personal-accounting.org/how-to-fill-out-a-w4/ apart, and you can arrange them in any order you like. If you fail an EA exam part, you can take it three more times (a total of four) during the testing window. 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.
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The EA’s universal acceptance and esteem stand in stark contrast to the CPA license, which the state boards of accountancy grant individually. No matter which profession you choose, having a solid understanding of accounting principles and tax laws will be key to your success. To get started on the right path with your studies, consider signing up for Gleim EA or CPA Exam Prep. With comprehensive study materials and practice exams, you’ll have the best chance of achieving your goals.
If you’re interested in specializing in taxation, then becoming an EA is a great option. It involves fewer education and licensing requirements than becoming a CPA and provides the opportunity to be self-employed as soon as you’re enrolled agent vs cpa salary licensed. The primary difference between EAs and CPAs lies in the type of work they do, although there are some similarities too. Both professions require a strong understanding of accounting principles and financial regulations.
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According to ZipRecruiter.com, the average annual salary for an Enrolled Agent as of December 2021 was $59,020. The job of an enrolled agent is not as well-known as that of a CPA. However, EAs are as good (if not better) at handling income tax matters. If you would like to specialize in income tax and desire the flexibility of working at home with your own clients, I encourage you to explore the EA path further. However, you still must pass all four parts of the CPA Exam within a rolling 30-month period. This time period begins as soon as you pass your first exam section.
- Hi-Educare is India’s No.1 training provider for the CPA and EA courses.
- To pass the exam, you’ll also need to purchase an enrolled agent course that provides study materials covering the exam content.
- These services are lucrative not only because they are vast but also because they are in demand across all industries.
- Most require at least a bachelor’s degree and at least two years of public accounting experience.
- To maintain official EA status, enrolled agents must complete 72 hours of continuing education courses every three years and adhere to strict ethical guidelines.
- The EA discipline, on the other hand, specializes exclusively in tax matters and those who earn the credential are recognized as tax specialists by the federal government.
Candidates who have a sufficient amount of work experience, according to IRS guidelines, may not even be required to take the exam. It requires patience, hard work, and meeting specific educational requirements. Certified Public Accountants, or CPAs, are licensed accountants with the statutory privilege to sign an audit report.