Accounting Services 101| Understanding the Difference Between CPAs and Enrolled Agents

While you have likely heard of a CPA, or certified public accountant, you may not have heard of an EA, or Enrolled Agent.  There are only about 48,000 EA’s practicing in the US, compared to over 650,000 CPA’s.  EA’s can be a great resource to a small business with tax-specific issues.  EA’s are typically less expensive than CPA’s, but are also subject to a certification exam, and complete annual continuing education requirements, similar to CPA’s.  EA’s can represent any taxpayer anywhere in the U.S.   Below is a chart detailing the nuts and bolts of a CPA and EA. 

There are so many options out there for businesses seeking different types of accounting services, whether you are looking for a CPA, EA, or even an outsourced accounting services firm.  No matter what the accounting service is that is being provided, a critical success factor is the ability for the business to have a productive working relationship with their accounting services provider.  In addition to working with an experienced and educated accounting services provider, it is important that your service provider develops a first-hand understanding about your business, and that they regularly communicate with you to ensure the best results in relationship with your accounting and tax support needs.