Be sure to consider additional factors alongside salary when planning your professional path. According to ZipRecruiter.com, the average annual salary for an Enrolled Agent as of December 2021 was $59,020. Your choice between becoming an EA or CPA should be based on a nuanced understanding of what each role entails, from tax preparation to financial planning and business consultation. Both are highly respected roles with their own sets of challenges and rewards, tailored to meet varying individual needs and career aspirations.
CPAs can also work in general business roles and can easily move horizontally or vertically within the structure of a business. CPAs are required to learn about financial accounting and reporting, tax, business law, the business environment, and audit before they can become credentialed. As demand increases for tax advice due to changes in the tax law, the demand for EAs is also going to increase.
Learn how becoming a tax expert can help you excel at firms of all sizes on our Enrolled Agents at the Big 4 blog. Large firms are willing and able to pay a premium to attract top talent. The larger the company, the higher the pay for a given role, and the better defined your career path will be.
- Remember that salary is one of many tradeoffs between different careers.
- This versatility allows CPAs to work in various industries and positions, offering greater career flexibility.
- This expertise, while potentially commanding lower salaries than the broader CPA role, remains highly valuable in the financial services sector.
- CPA stands as the highest credential awarded in the accounting field, covering a wide range of financial services beyond taxation.
- 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.
EA vs CPA salary: what you need to know for your career
So, to determine how lucrative a career as an Enrolled Agent can be, use this information to learn more about the Enrolled Agent salary. As you weigh the two options, consider differences in salary, job function and career path. These regional differences underscore the importance of considering location when evaluating potential earnings as an EA. It’s advisable to research local salary trends for a more accurate understanding of earning potential in a specific area. By considering these factors – experience, role, and location – one ea accountant salary can better gauge potential EA salary ranges. However, individual circumstances may lead to variations in actual compensation.
Exam Review
An EA who starts their own business may have a higher earning potential than the average EA or CPA salary. EA salary potential is influenced by various factors including experience, role, and location. While EAs may not command the same salaries as CPAs, their specialized tax law expertise is highly valuable in today’s complex financial landscape. If you’re looking to speed up your salary gains in tax preparation, the best thing you can do is earn a professional designation, like the Enrolled Agent designation awarded by the IRS. Earning an EA confirms to clients the tax knowledge that you have, and keeps you up to date every year on any changes in taxation. The IRS designates EAs, but because they represent taxpayers before the IRS, Enrolled Agents cannot work there.
Unlike other non-enrolled tax professionals, an Enrolled Agent has special permission to perform legal services that other tax professionals cannot. The main service that distinguishes an Enrolled Agent from others is the ability to represent taxpayers. In addition to preparing taxes and providing advice, Enrolled Agents have permission to act on behalf of their clients in any dealings with the IRS. The Enrolled Agent (EA) credential is a nationally recognized certification offered by the IRS for tax professionals. There is no specific education or work experience requirement, although candidates should have well-established tax knowledge before taking the exam. One of the most compelling factors when choosing between becoming an EA or a CPA is salary.
Whether you’re just getting started as an Enrolled Agent or are already a CPA wanting to specialize in tax, dual certification is the best way to help yourself stand out from the crowd. But the fact that smaller firms have to specialize can be both a blessing and a curse for Enrolled Agents. For example, a small agency that specializes in escrow accounting may not need an Enrolled Agent. On the other hand, a small company that specializes in complex tax situations would really benefit from having one or two EAs on staff. This means EAs can represent any taxpayer, regardless of whether they prepared their income tax return.
The Primary Difference: Highest Credential Awarded vs Specialized Service
They are typically adept in preparing tax returns and can represent taxpayers before the IRS. Becoming an EA is one of the best investments you can make in your career as a tax preparer. The benefits you’ll gain from earning the EA designation will far outweigh the cost of taking the EA exam. In addition to the salary benefits, you’ll also enjoy increased representation rights so you can expand your client base and the services you can offer. Plus, the EA designation signals a high level of expertise that will cement your status as a valuable expert on tax topics. In general, the EA’s job is to help their clients with a variety of tax matters, from tax preparation, to representation during hearings or conferences, to helping them through audits.
- However, it is vastly cheaper than that of preparing and sitting for the EA exam, and takes much less time to complete.
- According to ZipRecruiter.com, the national average salary for an Enrolled Agent as of February 2023 is $60,725.
- For example, a small agency that specializes in escrow accounting may not need an Enrolled Agent.
- These courses are typically focused on taxation and representation matters, allowing Enrolled Agents to stay up-to-date on current tax codes and representation practices.
What’s more, the general population demand is greater for CPAs than EAs. There are three sections to the exam, which cover individuals, businesses and representation and practices and procedures. There is also a continuing education component that entails taking 72 credits every three years. Once EAs have passed their qualifying exam, the federal government recognizes them as tax specialists.
Of course, having your own agency also removes any limitations on your salary. Therefore, you should compare the average EA salaries across the United States to better understand how much you can make as an EA. Start studying today with Surgent EA Review — the smartest way to pass the Enrolled Agent exam — start your free trial today. Considering becoming an Enrolled Agent, but curious about the salary prospects?
Preparing and Reviewing Workpapers for Higher Quality Audits
And with affordable pricing, this investment in your future definitely pays off. So, use our comparisons of the best EA review courses to find the right EA course for you, and use our EA discounts to save on your preferred exam prep. For example, many small to mid-sized businesses prefer to outsource their accounting. So, having one person serve as both their tax preparer and their tax attorney appeals to these clients quite a lot. Additionally, clients often prefer to work with a single individual or a small team for the sake of efficiency.
How do I become an enrolled agent?
CPAs, like EAs, can easily start their own small business working with clients. EAs, while potentially earning less on average, specialize in tax law and regulations. As of 2024, over 86,000 public accounting firms existed in the United States. While that number is large, most of those firms are small agencies that handle relatively few clients compared to the big competition. The largest firms in the country pull in billions of dollars in revenue annually and employ tens of thousands of people.
Therefore, as with the lion’s share of the small accounting agencies out there, specialization is key. Consequently, building a reputation as the tax expert in town (and the tax law expert) can really help your career. On average, CPAs do make more money (over $70,000 annually) than Enrolled Agents. But in the long term, corporate salary caps and geographical constraints often limit CPAs’ salaries.
Be sure that if you choose to consult with either type of professional, you have a solid handle on your finances and measure your expectations. EAs can help you work through an IRS audit or a collection problem, and they can also perform bookkeeping services that could be useful for businesses when preparing tax returns. CPAs can also be found in a variety of environments from large public accounting firms to local firms.
As in many professions, more years in the field typically correlate with higher earning potential. New EAs may start at lower salaries compared to experienced practitioners, but can expect increases as they gain expertise. The biggest step you can take to increase your salary as a tax preparer is to become an Enrolled Agent. If you don’t currently have the IRS experience to become an Enrolled Agent, you’ll need to pass the EA exam. The EA exam was designed to produce only the most qualified and competent enrolled agents. But fortunately, you can prepare to pass by utilizing an EA review course.