It’s really a personal choice what size company you want to work for, but you should consider benefits that can affect your quality of life. Offer some benefits (e.g., gyms, cafeterias, and daycare) that smaller firms can’t reasonably fit into their budgets. Tax managers handle all the tax reporting and compliance with local, state, and federal tax laws for an organization. While this position is commonly filled by a CPA, the Enrolled Agent designation is a great way to secure your tax specialization. Completing the AFSP is not nearly as comprehensive as receiving an Enrolled Agent designation, and you do not have as many rights as an EA. However, it is vastly cheaper than that of preparing and sitting for the EA exam, and takes much less time to complete.
No matter which career path you decide to take, you’ll be an elite professional in the field of accounting. Weighing every factor, such as salary, lifestyle, and adherence to your personal values will help you make the right choice for a career that provides both comfort and fulfillment. The Enrolled Agent credential is a nationally recognized certification offered by the IRS for tax professionals.
They prepare tax reports, ensure the accuracy of the company’s tax documents, and are responsible for handling any issues. They must stay up to date on relevant tax laws and often communicate across departments to ensure the entire firm is complying with accounting procedures. Bookkeepers ensure that a business makes the most economically viable and safe decisions to keep finances tight and under control. This position does not exclusively involve taxes, but having experience with tax planning can be beneficial to many bookkeepers. This in turn makes you a more popular choice compared to your peers when it comes to a potential client looking for a tax professional.
Surgent offers study materials for both the CPA Exam and the EA Exam to get you on your way to licensure and your new career. Pay ranges for people with an Enrolled Agent (EA) certification by employer. Yet, both paths to the EA also involve extensive background investigations. And, in addition to the standard background check, the IRS also investigates your personal tax history.
Furthermore, when you consider the lack of an upper limit on your earning potential, the idea of self-employment becomes very attractive. In the right area, and with the right book of business, an Enrolled Agent can do quite well working in self-employment. Best of all, you can set your own schedule, work across the United States, and take on as many clients as you can keep. Working as an Enrolled Agent at one of the larger national tax firms won’t necessarily earn you as much as you might make at a more specialized regional or local brokerage. The big chains pay their more experienced Enrolled Agents between $20 and $30 per hour on average, which comes to between $40,000 and $50,000 annually.
EAs can be seen in an office, in front of the IRS, or sitting down with clients. They work in accounting firms of all types and sizes, with many EAs starting their own businesses. Another factor to consider as you choose your career path is the earning potential for both the EA credential and CPA license. While both the CPA and EA credential require tax knowledge, the EA is much more niche within the industry and geared more toward tax practitioners. The Enrolled Agent credential requires more in-depth tax knowledge than the CPA credential, meaning EAs are valuable to clients looking specifically for advice on advanced tax issues.
CPAs, on the other hand, require a bachelor’s degree and a state’s board certification, usually after passing the comprehensive four-part CPA exam. CPAs are more than just tax professionals; they also serve as financial advisors and business consultants. They are well-versed in financial accounting and reporting, can conduct audits, offer business environment and concepts advice, and even specialize in personal finance management. Are you on the crossroads of choosing between becoming an Enrolled Agent (EA) and a Certified Public Accountant (CPA)? Each career path has its merits and focus, whether it’s financial accounting, tax preparation, or even financial planning. Here, we dive deep into the specifics of these roles, from their educational qualifications to their place in today’s business environment.
And, if you decide to work for a non-finance-related company as an Enrolled Agent, you can actually expect to earn a bit more. On the other hand, accounting jobs for enrolled agents at top corporations like Apple, Starbucks, FedEx, and GE typically pay between $60,000 to $80,000 per year. The SEE is designed to assess the examinee’s understanding of tax codes, tax theory, ethics, as well as their practical application skills. Because the EA credential is focused on tax issues, there is no requirement for a college degree or other educational qualifications beyond passing this exam. This makes the EA credential an attractive option for those who want to specialize in tax-related matters without delving into the broader scope of financial accounting and reporting. CPAs are elite accounting professionals that can work in every sector of the profession, from tax to audit to consulting and advisory.
During the taxing season, both EAs and CPAs are fully engaged in preparing tax returns, although their approach may differ. EAs, often former IRS employees, use their in-depth tax knowledge to provide tailored tax advice and handle complex tax situations. CPAs, however, offer a broader range of tax services, combining their accounting practices to provide comprehensive financial planning alongside tax preparation. EAs are federally-licensed tax professionals who are specifically licensed by the IRS to represent taxpayers before the federal government. The role of an Enrolled Agent primarily revolves around tax matters like tax returns, tax planning, and representing taxpayers in IRS office reviews or audits. Enrolled Agents are also well-versed in tax-related issues like determining tax liability and providing tax advice.
Typical EA responsibilities include representing business or individual clients in tax audits, tax appeals and tax collections. Additionally, EAs can also provide tax advice, tax return ea accountant salary filing and more. According to the 2024 Robert Half Salary Guide, hiring trends in accounting and finance continue to favor the job candidate. Firms are looking to fill entry-level positions, so recent accounting grads and young professionals are in a great position to get their first accounting job. Firms are especially interested in candidates with technology skills that can be applied to growing areas like cloud systems and data analysis.
This document explains that you can obtain an Enrolled Agent designation in 1 of 2 ways. The first is by passing the Special Enrollment Examination (SEE), which has 3 parts. It’s essential to take into account the cost of living expenses in your deliberations as well. Each section of the CPA exam needs to be passed within an 18-month window, starting from the date the first test is passed.
This job usually involves a busy season, with the highest workload occurring from December to mid-April. One reason Enrolled Agent salaries across America are so widespread is that Enrolled Agents can hold various positions. Your education and experience level, as well as any other certifications you hold, also affect the size of your Enrolled Agent salary. And another factor that makes a significant difference is the type of employer for whom you choose to work. If you’re considering a career in accounting or finance, you may be curious about how much money Enrolled Agents make. They also work for some of the most well-respected corporations in the country.
For CPAs, the requirements are often more rigorous and can vary depending on the state board’s stipulations. Many states require CPAs to complete up to 40 hours of continuing education each year. These courses can span a broader range of topics, including financial accounting, auditing, ethics, and even specialized areas like forensic accounting or cybersecurity. An enrolled agent, or EA, is a tax professional who focuses on managing tax arrangements for business or private entities. EAs boast a wide range of knowledge in tax-related subjects such as income, estate, gift, payroll, levies, returns, inheritance, non-profit and retirement taxes. With dedication and strategic career development, EAs can build rewarding careers as trusted tax professionals.
A CPA needs to have a 4-year degree from a qualified university, then pass the CPA Exam in order to earn the CPA credential. Remember that salary is one of many tradeoffs between different careers. Review our Career Guide for more information on the roles of each credential.
Jobs paying $47,500 or less are in the 25th or less percentile range, while jobs paying more than $70,500 are in the 75th or more percentile range. As a seasoned financial professional with over 20 years of experience, I specialize in strategic financial leadership and guidance for growing businesses. My expertise is rooted in my CPA, and CGMA credentials, and an educational background that includes an MBA and an MS in Strategic Management. Different specializations, such as tax preparation or financial consultation, may command varying compensation levels. It’s important to consider one’s particular niche when evaluating earning potential.
Recent Comments