Enrolled Agent vs. CPA: Which One Is Right for You?

Taxes are usually a labyrinth—full of turns, dead ends, and surprises. You might be a freelancer drowning in 1099s, a small business owner struggling to stay on top of quarterly payments, or a business under audit, but eventually, you’ll require a guide. This is where enrolled agents (EAs) and certified public accountants (CPAs) come in—two professionals who are familiar with the tax terrain inside and out. But this is the thing: both can assist you with taxes, but their specialty isn’t identical. So which is suitable for you? Let’s get to it—no jargon, no fluff—just straightforward, practical insights to assist you in making your choice.

Key takeaways

If you’re in a hurry, here are the key differences in short:

• While EAs are tax experts, CPAs handle broader financial services. EAs are tax professionals who have been licensed by the IRS to represent taxpayers before the IRS, but certified public accountants deal with accounting or a related subject, auditing, and business tax return preparation along with tax advising.
• Education and licensing differ. EAs earn their credential by passing the Special Enrollment Examination, whereas CPAs are required to complete a degree in accounting or a related field, pass the CPA exam, and meet state boards of accountancy licensing requirements.
• IRS representation is different. EAs can represent clients before the IRS in all states, but CPAs’ representation rights are generally restricted to states in which they are licensed.
• The right choice is based on what you need. If you are working with individual and business tax returns, audits, or require IRS representation, then an EA is the best fit. If you require financial planning, business strategy, or tax consulting, then a CPA is the better option.

And now, let’s dig deep into details.

Breaking down the roles: What an EA and a CPA bring to the table

Both EAs and CPAs help with tax laws, but in different capacities. Understanding what each of them does will enable you to determine who’s best for your tax needs.

Enrolled agents: Tax specialists recognized by the IRS

An enrolled agent (EA) is a tax professional licensed by the IRS to represent taxpayers regarding audits, collections, and appeals. Unlike the majority of tax preparers, EAs have unlimited representation rights before the IRS on behalf of taxpayers with personal and business tax returns.

NAEA (the National Association of Enrolled Agents) states that they can represent, prepare tax returns, and do tax consulting for just about anyone. In plain language, think of an EA as a tax specialist who works with the precision of a surgeon—carefully navigating tax laws, maximizing deductions, and resolving IRS issues.

What is required to become an EA? Tax experts who go the extra mile for you

When you employ an enrolled agent (EA), you’re getting a tax professional who’s put in serious effort to master tax laws. To earn their credential, they must pass the Special Enrollment Examination (SEE)—a three-part, rigorous examination on individual and business return tax laws, IRS procedures, and regulations.

But it doesn’t stop there. EAs must complete 72 hours of continuing education every three years to stay current with tax law so they can give the highest quality advice.

Certified public accountants: Broad expertise in finance and taxation

Not every accountant is a CPA. A certified public accountant (CPA) is an expert with a much broader range than an EA. Although the majority of CPAs concentrate on tax consulting, they’re also skilled in financial reporting, auditing, and business consulting for individuals and businesses.

So if an EA is a surgeon, a CPA is like a general practitioner, handling everything from tax return preparation to financial planning, auditing, and business consulting.

What makes someone a CPA or what do you get when you hire one?

When you bring a certified public accountant (CPA) on board, you’re getting someone who’s spent years in school, intense exams, and actual experience to earn their title. It’s not a matter of simply passing a test to become a CPA; it requires detailed knowledge of accounting, auditing, tax law, and financial management.

To earn their license, CPAs must:

• Earn a degree in accounting or a related discipline, generally with 150 semester hours of college study.
• Pass the Uniform CPA Examination, a tough four-part examination on financial reporting, auditing, regulation, and business concepts.
• Gain practical accounting experience, often working under a licensed CPA prior to full licensure.
• Stay up to date with continuing education, which varies by state but keeps them current and aware of financial legislation and best practices.

So, how exactly do EAs and CPAs stack up against each other? Let’s break it down.

EA vs. CPA: How they compare

Check out this head-to-head comparison of EAs and CPAs based on what matters most to clients.

Now, let’s dive into the big question—which one is the right choice for you?

Which professional should you choose?

Choosing an enrolled agent (EA) or a certified public accountant (CPA) ultimately depends on your specific tax situation. To help you make the right choice, let’s explore real-world scenarios where each professional shines.

When an enrolled agent is the right choice

Imagine you’re a freelancer who’s just expanded your services across the country. You’re earning more income, and tax season is becoming too much to handle. You’re uncertain about deductions, puzzled over estimated tax payments, and worried about IRS audits.

✅ An EA would be ideal—they’re specialists in tax law, can assist in getting the best out of your deductions, guarantee compliance, and even represent you in front of the IRS if needed.

Then there’s a small business owner who has an ecommerce business in several states. As notices of state tax regulations and IRS audits accumulate, sales taxes and employee withholdings are the furthest from the business owner’s mind.

✅ An EA can handle multi-state tax obligations, deal with IRS communications, and keep your business tax compliant. 

Takeaway:  If you require professional tax advice, IRS issue resolution, or multi-state tax compliance, an enrolled agent is your best bet. 

Check out everything you need to know about pre-tax deductions and post-tax deductions. 

When a CPA is the right choice

Now, consider a mid-sized business owner getting ready to expand the business, seek investors, or get a business loan. The company’s finances need to be in top shape, and financial statements need to be audited. 

✅ A CPA may be the appropriate professional to assist with financial reporting, auditing, and making sure the business is in compliance with regulatory needs.

Or perhaps you’re a high-net-worth individual who’s planning ahead. You require assistance with estate planning, wealth management, and long-term financial planning.

✅ A CPA’s more extensive financial knowledge qualifies them as the preferable choice to manage intricate financial planning, forensic accounting to uncover fraud, or tax planning that goes beyond basic filing.

Takeaway: If you need financial expertise beyond taxes, including auditing, business growth planning, or wealth management, go with a CPA.

Read about how to avoid getting audited by the IRS. 

What else can help you with your accounting? 

Whether you work with an EA or a CPA, keeping your business finances in order takes time. That’s where accounting automation like Synder comes in. Synder integrates with 30+ platforms, including payment processors like Stripe or PayPal, ecommerce platforms like Amazon or Shopify, and the most popular accounting software—QuickBooks, Xero, Sage Intacct, where it automatically posts transactions, taxes, fees, and refunds.

Rather than requiring you to manually enter each sale and purchase, Synder keeps your books current and accurate—leaving your EA or CPA with less to do and more precise information to work with. That translates to quicker reconciliations, reduced errors, and improved financial visibility for your business. 

Want to make accounting effortless? Sign up for a 15-day free trial to experience Synder yourself or take a guided tour of Synder’s robust functionality during our Weekly Public Demo.

Final thoughts: Making the right decision

Deciding between a CPA and an EA is somewhat like selecting the proper tool for the task. If taxes are your primary concern, an EA is your specialist, a veteran who’s navigated the twists and turns of tax law. But if your financial needs go beyond taxes, a CPA has a bigger toolbox. 

Think of them as the architect who not only understands the foundation of your finances but can also help you build for the future. At the end of the day, it all comes down to what you need.