EA vs CPA...Which Is Better?
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- Опубліковано 25 січ 2023
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He’s talking as if CPAs do both taxes and audit (no specialization). CPAs generally specialize in either Audit or Tax, so a CPA that specializes in tax does the same amount of tax research and study as an EA
Are you a CPA?
True
EA cope lol
I think he was referring to how each license is designed. CPA is primarily a state accounting designation. EA is a federal tax license. The EA exam is 75% tax and representation. The CPA exam is only 20% tax.
Though a CPA could have a 100% solo tax practice.
@hmmok5791 a CPA is a licence that's reciprocal in every state, an EA cannot legally call themselves an accountant in the state of Texas because it's a legally protected term.
Also it's not 20%, 1 of the 4 CPA exams is fully dedicated to Tax but Federal Income Tax is covered in FAR (Revenue Recognition and Income Tax basis accounting) and in BEC.
Always trying to downplay the CPA
Yup! This guy is crazy haha
There's no doubt that the letters CPA will open more doors than EA. But not in the realm of tax. EA is the highest designation awarded by the IRS, and they are considered to be the authority. The AICPA may disagree, but them's are the breaks.
@@daboi9172 I’m just stating that just being an EA doesn’t mean the person knows more about tax than a CPA. CPAs can also specialize in tax. To liken all CPAs to mere tax preparers/data entry is misleading. CPAs can also be so called “Tax Strategists “ and have the same representation rights before the IRS. The content covered in the REG section of the CPA exam is pretty comparable to that of the EA exam save for the representation portion. Also, the REG exam is not all multiple choice, there are application simulations. And CPA could have attestation rights which an EA won’t. All in all, a fresh CPA with no experience probably has 70 to 80% of the knowledge of a fresh EA with no experience save for some of the representation Circular 230 stuff that is easily researched or learned ojt
@@wavynomad I agree with this completely.
So it comes down to the style of the CPA. Up to the individual
This guy knows nothing about being a CPA.
He didn’t mention they are generally useless and backward thinking?
@@Jrt91 not sure those are the descriptive terms I'd use... i would say that there are some smart EAs out there and some Smart CPAs... but when you compare the level of knowledge and training of a tax emphasis CPA with that of an EA - its like comparing a police officer with a high school dance chaperone. The EA designation is just anemic in comparison. If your tax situation is comparable to a high school dance and an EA is all you need, great. As a side note, EA educational requirements don't even specify if you need a complete high school education. CPA will require 150 hours of college education with almost twice the continuing education required. And CPA is not event the gold standard. That'd be a tax attorney with a Tax LLM. Hope this clears that up a bit.
@@obiwannacrack6053 And what are you?
@No Google I'm not sure I'll put my resume on youtube. Lol. But maybe it'll satisfy you to know that I do work in Tax, I have sat for the Bar exam, the CPA, and the EA. Of those three, the only one I passed without studying was the EA. So, I can tell you that unless you've sat for the CPA and have worked as an accountant, you have no idea what makes a CPA. You can speculate all you want, though. Like this guy on the video.
First thing that comes out of his mouth in the video, yeah, I’m not a cpa
They’re both valuable for different purposes. An EA is a mile deep well of knowledge focused on tax and tax strategy. A CPA is a mile wide knowledge on accounting.
CPA here. That is not always the case. I work exclusively on the tax side and not the accounting side.
Finally somebody with some sense around here has posted a good comment. I am also an EA and I work alongside CPAs, but my focus is strictly tax law so customers have questions that are focused on tax law, They speak to me.
I know several people that couldn't pass the CPA but breezed through the EA exams. Im a cpa and i work with EAs.
CPA's can have multiple specializations. A lot of them are tax professionals and tax planners.
Lol there are CPA firms emplying CPAs whose only job is to is to do federal and state taxes. This guy doesn't know what he's talking about
Are you a CPA?
@@nogoogle6349 yea
He didn't imply otherwise in the video, your knee jerk reaction is too funny lol
Remember in the United States it’s not how much you make - it’s how much you can keep. EA ALLLLL DAY…
The difference is 100k per year.
CPAs earn more.😂
I take it you're not familiar with the Dennis family. They're all EAs and they are absolutely loaded.
@@FrankieBlueEyes ok. They are larger than Deloitte 😂
This is also false information. A little research and opened eyes will help. Depending on where you are located., many of these positions start at $100,000 a year. I live in Las Vegas but many of the job offers I got were virtual positions for another company. Don’t post information if you don’t like EAs that’s OK just enjoy your CPA status
@@user-ie6ss2fk3j No comparison. CPA > EA.
Beware of any one commenting negatively about an EA or a CPA. As a client, they will seek out the help that they need according to their problem and questions. People get their ego so big but forget that we are here specifically to help the client. 😂
CPA requires education above bachelors. Work under for a CPA in most states for a year, and pass 4 board exams Fin Accounting, Auditing, Tax, and Business.
An EA doesn’t requires higher education just need to pass the exams given by the IRS.
The requirements to be a CPA are far more stringent than an EA. CPAs are far more experienced and expensive than an EA.
CPA: harder exams, higher paying jobs, more opportunities in big corps like EY, PWC, McKenzie, Microsoft, Google.
EA: easier exams, lower salaries, most jobs are in tax preparing firms like HR-block. Many EAs end up on the entrepreneurial path opening their own tax firms.
Hiring a CPA to do your taxes is generally more expensive.
CPA is more prestigious than EA. Not to diminish EAs, but In the industry, EAs are those folks who couldn’t pass the CPA exams
Te respondo en espanol porque deduzco por tu nombre q eres latino, conozco MUCHOS CPAs q estan perdidos en taxes, dedican tanto tiempo en accounting que no siempre un CPA es la mejor opcion para el cliente, hay muchos EAs que estan en un nivel mas alto que cualquier CPA, hablando en materia de conocimiento. Y te corrijo, hay muchos que NO LES INTERESA un CPA, van directo al examen de EA, Saludos
Your last statement is grossly inaccurate. From a business standpoint as an entrepreneur, it makes much more sense to go the EA route rather than CPA. Not because they couldn't pass the exams
For the practice of tax, the CPA designation holds no practical advantage over EA, for practitioners or business owners lol. You are right though, the CPA designation is certainly more prestigious. Which is why this video clearly pisses off CPA's so much lmfaoo
Not all and I would guess a majority of EAs have zero interest in becoming a CPA. I know of some who went from Actuary Science (which is as hard if not harder than CPA exam) to EA work just to do tax resolution work. And for the record the CPA requirements have gotten tougher over time so don't be surprised to see that many CPA boomers went through a process much less stringent. End of the day who cares about prestige go with your business mission and passion.
@@richelletvforyou8324 it's actually much easier due to a lack of CPAs. They have been removing hurdles to sit for the exam.
What if an individual has both designations (EA & CPA)?
Easy:
EA is the WNBA
CPA is the NBA.
Simple as that 😂
All jokes until the WNBA slam dunk in your face 😂
This guy is sloppy. Part of the CPA exam is DEDICATED to tax planning and strategy, meaning you have to study and understand those disciplines in order to handle the task-based simulations on the REG and TCP sections of the exam. This is more than just "accounting for items that need to go in a tax return." It's unwise to undermine CPAs in tax like this, many of whom are ALSO EAs but find the EA limiting in expertise.
I am a CPA and this is true.
i am not a CPA and this is still true
CPAs work in a variety of accounting, auditing or tax areas, one can be a CPA and a tax specialist doing tax research and planning just as a lawyer or EA
About 50 points of IQ
I love this guy. I really need to book an hour long consult with Karlton this year. I have an excellent CPA but a second opinion is never bad. We do it for our physical health, so I should also do it for my financial health.
Either can be wayyy better than an unlicensed tax preparer.
As a licensed CPA (and someone who works for a public accounting firm) this kind of wording is dangerous and can lead to others being mislead to believe they shouldn’t consult a CPA when filing taxes and that’s something that should be avoided. Remember it’s harder to become a CPA than an EA.
I'm sorry, what in his statement could "lead to others being mislead to believe they shouldn't consult a CPA when filing taxes" lol. You guys are so butthurt in these comments
Not butt-hurt. Just facts. Many CPAs have a masters in Taxation
@@RocoLuv I appreciate your thoughtful input.
Be careful. An EA doesn't have the professional reputation of a CPA
That's not true when it comes to taxes
@christian-gu5oq not sure I what universe you live. But most people don't know what's an EA
@@christiancoronado Most people don’t know the difference between tax forms 💀. Just because the average American is ignorant does not mean that they don’t have professional credibility. The irs is the standard for taxes and they are certified by them.
That’s far from true. We have the highest designation with the IRS and we are able to represent and have the reputation at a high-level. It’s fine if you are a CPA but no need to downplay us EAs. Like we’re literally all on the same team just trying to do our best to help the client.
@user-ie6ss2fk3j EA is the highest and only designation provided by the IRS. I could say it is the lowest, and it would mean the same. CPA's outranking EAs in terms of reputation is simply a fact. That being said, EAs specialize in tax, and not all CPAs are tax practitioners; for example me.
Very misleading generalization. This looks more like an infomercial for someone who knows little about the CPA profession.
No disrespect towards EAs, I have known several who are good at what they do.
CPAs must have a business degree, pass a 2-3 day comprehensive exam, meet state licensing requirements, and participate in continuing technical education including professional ethics. CPAs with a tax specialization are highly skilled and many offer planning guidance in addition to preparation and audit representation.
Finding the right tax preparer or advisor is like seeking any other professional. Ask friends and colleagues, check credentials and professional memberships, ask questions (do you work with clients like me? How would you advise on...), look for ratings and trust you gut.
I am a CPA of 45 years.
I disagree! Plus, if you were a CPA of 45 years, who did you work for? What's your resume?
Studying for CPA atm. Seen many of this guys videos. Your first sentence summarizes this guys entire page. Most of his tax advice is very misleading. Basic concepts like business miles for vehicles seem to confuse this guy.
P.S. the other reply is 100% a bot.
Anyone can take the EA exam, but to become a CPA, you need 150 credit hours of a university degree and at least a year of experience working in public accounting. CPAs handle all aspects of accounting (Audit, taxes etc) whereas EAs focus solely on taxes. The Cpa exam is not for the weak.
Full video?
Like CPA’s don’t also study tax and tax law in undergrad and graduate school. They’re also tested on it on the CPA exam. A big 4 or any firm for that matter, looking for a Tax Associate is always going to choose CPA over an EA
Product recommendations please
Stupidest thing I’ve ever heard him say. As someone who is studying for the cpa exams and already working in Tax for an accounting company, he couldn’t be more wrong. The higher the net worth of certain clients the more strategic and intentional you have to be. It’s more planning than simple returns. Nothing against EA’s but let’s cut the bull
Congrats, you made it big time!
Great explanation for what an EA is. Bro was speaking yapanese on that CPA explanation though lmao
Desperately trying to find a CPA and EA in my area
Accountant: IM a CPA
Taxpayer: What make you better than my tax guy
Accountant: IM a CPA
Not necessarily true.
Lmao so accurate. This comment section got a healthy dose of uncle D's koolaid.
It's not like the guy said anything incorrect, but cpa's are flocking to this video all butthurt that they spent too much on a worthless degree lol. Each are just as qualified to practice tax in the US. The real difference that clients should be looking for is what the professional has gotten out of their education and experience. Because hiding behind the letters that come after your name does NOT make anyone a better business advisor.
CPAs love to gatekeep to justify all the hours and money they spent for them three letters.
Does anybody know a good EA? Definitely will need one for 2024 tax return
Bro, an EA is not a higher designation than a CPA. Also, a CPA does the same as a EA and much more. There are complicated book to tax differences that EAs probably won’t know about. The point what I’m trying to say is don’t praise EAs and downplay CPAs when it should clearly be the other way around. Regardless I do like his content but this video pisses me off.
The CPA requirements are much more rigorous and most people who have taken both exams will tell you the CPA exam is much harder. However, many EAs and even seasoned unlicensed preparers can handle most people's taxes effectively.
The guy asking is the reason why housing costs went way up in any location he's visited.
In india chartered accountants do both of those work .
An Enrolled Agent is someone who COULD NOT PASS the CPA EXAM or get the required experience. True there are CPAs that do not know/do taxes. FOLKS, a CPA with TAX experience is GOLD! Don't let this guy fool you
I sat for the CPA REG portion (1 of 4 tests) after 3 months of studying, didn't pass it, and honestly for a boost of confidence, I sat for the EA exams - all 3, and passed. I'm a tax accountant and about 60% of my work is consulting. I only deal with returns during tax season. This guy is out of his mind even comparing them. It's like comparing the education and range of expertise of a surgeon and an EMT. Just because you occasionally see each other in the same room does not mean you're at comparable levels. That, of course, leaving out individual levels of intelligence. I'm sure there are some EAs out there that are better at their job than some CPAs. But CPAs require more education to qualify, more accounting experience, more testing, and after that, at least twice as much continuing education.
Sounds based
And what are you?
@@nogoogle6349 CPA with 30+ years of ONLY Tax experience - International Firm - Big 4 partner -why?
@M , @no google wants to know because they apparently think everyone online just makes up crap. Which is funny because that's what this guy in the video is doing. We're just trying to correct the misleading. Some people onlu see what they want.
You don't have to be an accountant to become an EA.
Not necessarily but believe me , If you don't do it you will be missing in this world
As well EA training is directly from the government not a CPA which a person may not get the correct information.
And the COST is dramatically different to learn for CPA than EA.
EA & CPA both make DAMNN GOOD MONEY ITS ALWAYS ABOUT YOUR MARKETING…
CPA’s have the public accounting and industry side that they are involved in as well as taxation. It’s more than just marketing as the CPA is simply certified to do a greater variety of things compared to an EA
An Ea exam does not require a college degree .. this guy downgrade a cpa a lot , a cpa that specializes in taxes is way more complete then a ea, now that being said An Ea is not that easy as many are commenting .
I don't disagree that it's downplayed here (as the exam itself requires more knowledge) but it is a ridiculous racket that a degree is required to take the exam. An individual of sufficient intelligence could easily assimilate the required knowledge to become certified without having to spend a ridiculous sum on credited courses.
Are you a qualified/Licensed CPA?
What a racket if one has have spend most of time studying where loop holes are in tax law.
If you don't mind learning or doing what others hate, you can generally charge a pretty good price. 😉
If ur not a cpa what's are you?
What are you?
Yeah…no the difference is getting your CPA license is incredibly difficult to do and becoming an EA is not hard at all. You can do so much with a CPA license but you won’t do it all. You’ll specialize in certain area like tax and auditing. Most reputable firms require their associates to obtain their CPA license to make manager and above. You have to make a really solid argument to promote an EA to manager and even then an EA could never make partner. (At least at the reputable firms, top 10)
For once can someone just say “I’m not completely sure.”
Don’t open your mouth and spill out your biases when you aren’t familiar with a particular service line.
You can lift up your certification without discrediting another certification.
Unprofessional and dishonest
How do you feel he discredited CPAs? You guys are all robots in this comment section lol
Completely ridiculous saying a CPA doesn't know how to consult on tax planning. This guys has no idea what he is talking about.
He didn't say that... You okay?
An EA is the easiest designation to get... Lol
Lol wrong
That is not true. CPA gets more respect and goes through more rigorous study and vetted. I will say, in my experience, some CPAs are absolutely horrible at tax strategy and have trouble being creative in their thinking. Those CPAs stay at corporations.
EAs don’t have to be educated in accounting or finance, they don’t have to have a degree. It’s an easy exam to take. Being licensed in 50 states doesn’t mean anything
im not an EA. but unfortunately many CPAs cant practice tax in another state which is unfortunate.
@@StochasticMan who told you that? They can’t practice Audit and that’s it.
I'm an EA However CPAs are generally way more knowledgeable. And skilled in more areas in taxes and finance. CPAs are needed for damn near every business transaction, government finance, non profits, They oversee payroll and more.
You definitely sound like my CPA
How long have you been an EA?
EA represents you in court a CPA can’t not.
a CPA can
No CPA and EA has the designation with the IRS both can represent you
you guys really need to stop coming on the internet with your bs
Well I can tell you one thing when I went to a CPA, how required a his client take a $3000 class which went over business knowledge and tax knowledge and what not. I asked this CPA, if I took these classes you offer. What would I need you for and he only could say was accounting.
I don't understand what you mean.
what is sad about a lot of these comments..........alot of CPAs still go get the EA license anyways. so i dont get all the bickering.
Definitely most CPA go for the EA as well
Ummmm...I don't know about all of that.
CPA = Doctor
EA = Nurse
This guy's information is so wrong that he is dangerous. He should not be given a public forum.
No, no
EA is nothing 😂
Interesting….
Interesting? Yes. Interesting how wrong this guy is about what he is saying.
@@thomass789 he didn’t mention CPA’s are generally rubbish I know.
Thanks K you’re 🔥🔥🔥🔥🔥
That's one of the best breakdowns I've heard
lol you really dont know about cpa haha. prople who keep failing cpa exam, they take EA in the most public accounting firm
Wait what. Ur not a cpa? This whole time I thought u were
What are you?
@@nogoogle6349 I'm your internet neighbor. Hello.
What a joke. EA’s are people that couldn’t pass the CPA.
True i know several people that couldn't pass the CPA but breezed through the EA exams. Im a cpa and i work with EAs.
Not all EAs go for the CPA, I do know quite a few CPAs that went for the EA, and most CPA will not hire a tax preparer without CPA or EA
I'm trans
This guy doesn’t know what he is talking about.
The EA works for the IRS and gets to have a stupid hair cutting dyes and molded wig do
HAHAHAHA 😆 😂 😆
They make good money too bro...