EA vs CPA: The Complete Comparison Guide
Choosing between becoming an Enrolled Agent (EA) or a Certified Public Accountant (CPA) is a significant career decision. Both credentials offer excellent opportunities in the tax and accounting field, but they serve different purposes and have distinct requirements. This guide will help you understand the key differences so you can make the best choice for your career.
What is an Enrolled Agent (EA)?
An Enrolled Agent is a federally-licensed tax practitioner who has unlimited rights to represent taxpayers before the IRS. The EA credential is granted by the IRS and is the highest credential awarded by the agency.
Key characteristics:- Specializes exclusively in taxation
- Can represent any taxpayer in any state
- Licensed by the federal government (IRS)
- No education requirements
What is a CPA?
A Certified Public Accountant is a state-licensed accounting professional who can provide a wide range of services including auditing, financial reporting, tax preparation, and business consulting.
Key characteristics:- Broad accounting scope
- State-licensed (requirements vary by state)
- Can perform audits and attestation services
- Requires specific education credentials
Requirements Comparison
Education Requirements
| Credential | Education Required |
|---|---|
| EA | No formal education required |
| CPA | 150 credit hours (typically master's degree level) |
The EA credential is accessible to anyone, regardless of educational background. This makes it an excellent choice for career changers or those without a traditional accounting degree.
Exam Requirements
| Factor | EA Exam | CPA Exam |
|---|---|---|
| Number of Parts | 3 | 4 |
| Total Questions | 300 | ~400+ (varies) |
| Time to Complete | 10.5 hours | 16 hours |
| Question Types | Multiple choice only | Multiple choice + simulations |
| Pass Rate | ~65% | ~50% |
The EA exam, while challenging, has higher pass rates and is generally considered less difficult than the CPA exam.
Experience Requirements
| Credential | Experience Required |
|---|---|
| EA | None (or 5 years IRS experience) |
| CPA | 1-2 years (varies by state) |
You can become an EA immediately after passing the exam and background check, while CPAs need supervised experience.
Scope of Practice
What EAs Can Do
- Prepare federal and state tax returns
- Represent taxpayers in IRS audits
- Handle collections and appeals
- Provide tax planning advice
- Represent clients in Tax Court (limited)
What CPAs Can Do
- Everything EAs can do, plus:
- Perform financial audits
- Issue attestation reports
- Prepare SEC filings
- Provide business consulting
- Forensic accounting
CPAs have a broader scope of practice, but if you're focused specifically on tax work, the EA credential provides everything you need.
Salary Comparison: EA vs CPA
Enrolled Agent Salary
| Experience Level | Average Salary |
|---|---|
| Entry-level | $45,000 - $55,000 |
| Mid-career | $55,000 - $75,000 |
| Senior/Manager | $75,000 - $100,000 |
| Business Owner | $100,000+ |
CPA Salary
| Experience Level | Average Salary |
|---|---|
| Entry-level | $55,000 - $65,000 |
| Mid-career | $70,000 - $95,000 |
| Senior/Manager | $95,000 - $150,000 |
| Partner | $150,000+ |
CPAs generally command higher salaries, particularly in public accounting firms. However, EA salaries have been increasing as demand for tax specialists grows.
Cost and Time Investment
Becoming an EA
- Exam fees: ~$600 (3 parts)
- Study materials: $200 - $500
- Time to complete: 3-6 months
- Total investment: ~$800 - $1,100
Becoming a CPA
- Education: $50,000 - $150,000 (if additional schooling needed)
- Exam fees: ~$1,500 (4 parts + application fees)
- Study materials: $1,500 - $3,000
- Time to complete: 12-24 months
- Total investment: $3,000 - $155,000+
The EA credential offers an excellent return on investment, especially for those focused on tax careers.
Career Path Considerations
Choose EA If You:
- Want to specialize in taxation
- Don't have a college degree or want to avoid additional education
- Want to start your career quickly
- Plan to open your own tax practice
- Are changing careers later in life
- Work for a tax-focused firm or want to
Choose CPA If You:
- Want the broadest range of career options
- Plan to work in public accounting (Big 4 or mid-size firms)
- Want to become a CFO or senior finance executive
- Need to perform audits or attestation work
- Already have the educational requirements
Can You Have Both?
Yes! Many professionals hold both the EA and CPA credentials. This combination provides:
- Maximum credibility with clients
- Flexibility in career options
- Demonstration of tax expertise (EA) plus broad accounting knowledge (CPA)
The Verdict: EA vs CPA
There's no universally "better" credential - the right choice depends on your career goals, educational background, and personal circumstances.
Choose EA if: You want to specialize in tax, enter the field quickly, and have a lower barrier to entry. Choose CPA if: You want the broadest career options and are willing to invest more time and money upfront.Both credentials offer excellent career opportunities and the potential for a rewarding professional life helping clients navigate complex financial matters.
Ready to pursue your EA credential? Our comprehensive practice question bank will help you prepare efficiently and pass the exam on your first attempt.