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comparison chart of CPA EA tax professional, CPA vs EA credentials overview, career options in tax and accounting
👤 NorthStar Academy📅 06 May, 24⏱ 9 min read

CPA vs Tax Pro vs Enrolled Agent Explained Clearl

Skilled professionals are in high demand due to rapid globalization. This increased demand is definitely good news. But don™t you feel this has also resulted in increased competition? You need something additional to make the recruiter notice you. This is where professional certification courses can help. You can understand the importance of these courses by comparing certified professionals with non-certified ones. One such example is CPAs vs. Tax Professional vs. Enrolled Agent. Do you know why employers get confused while choosing between a CPA, an Enrolled Agent, and a Tax Professional? Why do they end up preferring CPAs and EAs over Tax Professionals? CPAs and Enrolled Agents are preferred by top employers. However, this is not the only difference between these three professions. There are several other aspects to study in the CPA vs. Tax Professional vs. Enrolled Agent comparison. From qualifying examinations to salaries, the path to becoming a CPA, a Tax Professional, or an EA is quite different. 

To become a tax professional such as a CPA or an Enrolled Agent (EA), individuals must pass rigorous exams like the CPA exam or the Special Enrollment Examination, complete 72 hours of continuing education, and meet experience requirements; these credentials enable them to prepare tax returns, provide tax preparation and planning services, address tax issues, and represent taxpayers before the IRS, ensuring compliance with tax law and minimizing tax liability, while continuously updating their knowledge through hours of continuing education to stay current with evolving tax needs and financial planning strategies. Curious to learn about CPA vs. Tax Professional vs. Enrolled Agent? Continue reading this post. It will answer all your queries. 

Latest Updates :

Certified Public Accountant (CPA)vs. Tax Professional vs. Enrolled Agent (EA)

Check out the comparison of CPA vs. Tax Professional vs. Enrolled Agent for a complete understanding: 

US CPA

CPA, or Certified Public Accountant, is a highly valuable professional course. Finance and accounting aspirants worldwide pursue it. The US CPA accreditation offers numerous career advantages. 

Syllabus

Attestation and Auditing (AUD)

  • Ethics, Professional Responsibilities, and General Principles
  • Assessing Risk and Developing a Planned Response
  • Performing Further Procedures and Obtaining Evidence
  • Forming Conclusions and Reporting

Financial Accounting and Reporting 

  • Conceptual Framework
  • Standard-Setting
  • Financial Reporting
  • Select Financial Statement Accounts
  • Select Transactions
  • State and Local Governments

Regulation (REG)

  • Ethics, Professional Responsibilities, and Federal Tax Procedures
  • Business Law
  • Federal Taxation of Property Transactions
  • Federal Taxation of Individuals
  • Federal Taxation of Entities (including tax preparation)

Optional paper (Any one) 

Business Analysis and Reporting (BAR)

  • Business Analysis
  • Technical Accounting and Reporting
  • State and Local Governments

Information Systems and Controls (ICS)

  • Information Systems and Data Management
  • Security, Confidentiality, and Privacy
  • Considerations for System and Organization Control (SOC) Engagements

Tax Compliance and Planning (TCP)

  • Tax Compliance
  • Planning for Individuals
  • Personal Financial Planning
  • Entity Tax Compliance
  • Entity Tax Planning
  • Property Transactions (disposition of assets)

Eligibility

  • 150 credit points
  • Two years of relevant work experience

Scope

  • Internal Auditor
  • Public Accountant
  • Finance Manager
  • Finance Analyst
  • Tax Analyst
  • CFO 

Cost

The US CPA cost is as follows:

  • Education and Evaluation Application Fees: $90-$150
  • Examination Application Fees: $1100-$1500
  • CPA Exam Retake Fee: $50-$200

  • CPA Review Course: $1,000-$4,000

    Salary

INR 7 LPA is the average fresher salary for CPAs in India. 

Tax Professional

You need not take any examinations to become a tax professional. Individuals generally get into this profession right after graduation with a Commerce background. As a result, they do not possess advanced skills as certified individuals. Some individuals might pursue short courses to get introduced to the basics of the taxation field. 

Syllabus

There is no fixed examination required to become a tax professional. Hence, these professionals mostly study only theoretical subjects. They pursue traditional graduation and post-graduation degrees.

Eligibility

  • Undergraduate Degree

Scope

  • Tax Accounting Staff
  • Tax Associate
  • Tax Specialist
  • Tax Preparer

Cost

The cost of becoming a tax professional depends on the path you choose. If you directly get into this profession after graduation, there is no extra cost for it. However, you can pursue certain short courses for tax professionals.  

Salary

INR 3.2 LPA is the average salary of a Tax Professional in India.

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Enrolled Agent

Another professional certification course is the Enrolled Agent course. This certification is awarded by the Internal Revenue Services Board of the US. This accreditation especially focuses on the taxation field. You have to clear the Special Enrollment Examination (SEE) to earn it. This certification will make you a tax expert. As an EA, you will have the right to represent taxpayers before the IRS. 

Syllabus

Individual Level

  • Preliminary Work and Taxpayer Data
  • Income and Assets
  • Deductions and Credits
  • Taxation and Advice
  • Specialized Returns for Individual

Business Level

  • Business Entities and Considerations
  • Business Tax Preparation
  • Specialized Returns and Taxpayers

Representation, Practices, and Procedures

  • Practices and procedures
  • Representation before the IRS
  • Specific Areas of Representation
  • Filing Process

Eligibility

  • 10+2 education qualification
  • Valid Preparer Tax Identification Number (PTIN)

Career Scope

  • Tax Associate
  • Tax Consultant
  • Tax Manager
  • Senior Tax Analyst
  • Tax Specialist

Cost 

The Enrolled Agent course fees in India include:

  • $70 charge for obtaining a PTIN
  • $200 fee for each part of the exam
  • INR 150,000-IINR 200,000 overall fee  

Salary

Enrolled Agents usually earn around INR 8 LPA in India. 


CPA vs. Tax Professional vs. Enrolled Agent: What to Choose?

Being ambitious for your career is natural. However, to fulfill your ambitions, you must choose a profession carefully. It must suit your aspirations and career preferences. When choosing between a CPA, Tax Professional, and Enrolled agent, you must evaluate several factors to make an informed decision. The above-explained CPA vs. Tax Professional vs. Enrolled Agent comparison must have helped you understand all three options in detail. So, if you wish to earn more and have a valued designation in the finance and accounting industry, choose between EA and CPA. These professional courses offer you expert knowledge and skills. Such expertise empowers you to stand out from all your competitors. Also, achieving these certifications opens doors to international opportunities. Top employers, including the Big 4 companies, constantly look forward to hiring EAs and CPAs over uncertified tax professionals. Now, you might get confused about which one to choose between CPA and EA. It is completely your choice. Both certifications offer the most attractive advantages. However, one major factor to consider is your career preferences. Choose the Enrolled Agent course to gain advanced tax expertise. However, you must choose the US CPA course to attain collective expertise in taxation, finance, and accounting. 

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Conclusion

Building your dream career requires a lot of effort. However, the first step is to be clear about your goals. You must know what you are aiming for. This post must have resolved your confusion about CPA vs. Tax Professional vs. Enrolled Agent, so it is now time for you to make an informed decision. If you aim for a highly valued and rewarding career, choose between CPA and EA. These professional courses will help you build a rewarding career in the international finance and accounting industry. Also, you will have everything when you get a reputation in these professions. These courses offer high-level positions with high salaries. Choosing a CPA or EA certification course is one of the best decisions for your career. They offer the desired reputation, remuneration, and expertise. However, you need to prepare thoroughly for their examinations to achieve these certifications. It is where NorthStar Academy can help you. We offer expert CPA and EA courses backed by the expertise of our mentor, M. Irfat Sir. So, do not wait anymore; enroll in our flexible courses to move ahead in your career. 

Connect with us on WhatsApp to discuss this further. 

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Frequently Asked Questions

Are CPA and EA becoming global designations?

CPA and EA are both global designations. They are valued in several countries around the world. 

What are the benefits of becoming both a CPA and an EA?

You can never get enough when it comes to qualifications. So, if you wish to earn both CPA and EA certifications, it is totally fine. It will offer you high-paying jobs and add extra stars to your expertise. 

What are the differences between CPAs, CAs, and EAs?

The three courses differ from each other in various aspects. They have different difficulty levels, salary ranges, syllabi, and career scopes. 

Is a tax professional the same as a CPA?

No, a CPA is quite different from a tax professional. The qualifications, salaries, and expertise of both of these professionals are significantly different. 

What are the pros and cons of Enrolled Agents and CPAs?

Pros of a CPA

  • Expertise in several areas of finance, taxation, and accounting.
  • Highly valued around the world.

Cons of CPA

  • The thorough exam syllabus can sometimes be stressful. However, it will become easier to understand when you join the right coaching institute for preparation. 

Pros of EA

  • Unmatchable tax expertise.
  • Short-term course.

Cons of EA

  • The advanced syllabus might seem difficult to cover. But this won™t be a problem if you get expert guidance.