This stipulation adds an element of time-sensitive pressure, making it a marathon where both endurance and expertise are tested. Working with an adviser may come with potential downsides, such as payment of fees (which will reduce returns). There are no guarantees that working with an adviser will yield positive returns.
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.
What is the average Enrolled Agent salary?
Big cities have more job opportunities and a larger pool of skilled workers, but they also typically have a higher cost of living, so location isn’t everything. If you dislike the cold and aren’t comfortable in a big city, you don’t have to live in New York or Chicago to make a living as an Enrolled Agent. If your ea accountant salary goal is to work at one of the Big 4 accounting firms, the Enrolled Agent designation is one way to stand out from other applicants.
Managers are looking for new ideas and are prepared to provide the necessary on-the-job training to prepare new hires for success. This is a great time to go into accounting, and becoming an Enrolled Agent will help you land an even bigger starting salary than you could without it. What’s more, Enrolled Agents often fill the roles of both tax accountant and tax attorney. In many cases, clients call upon the expertise of Enrolled Agents in complex tax situations where audits are likely. So, as the tax preparer, an Enrolled Agent is the most qualified to explain and defend the choices made during preparation.
SmartAsset Advisors, LLC (“SmartAsset”), a wholly owned subsidiary of Financial Insight Technology, is registered with the U.S. If you have accounting needs with a micro focus, working with an EA could be the perfect fit for you. On the other hand, if you are interested in accounting practices that have nothing to do with taxes, such as auditing, then the CPA option may be best.
- What’s more, the general population demand is greater for CPAs than EAs.
- For each stage of your Enrolled Agent career, you’ll see an average salary increase of 8.38%.
- And while they say everything’s bigger in Texas, this statement doesn’t necessarily hold true for Dallas Enrolled Agent salaries.
- These goals could include anything from putting a down payment for a home to opening a new branch of business across the country.
- While salary is an important consideration, the EA role offers distinct advantages.
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.
For example, in Phoenix, a senior tax consultant with an Enrolled Agent designation and over 5 years of relevant experience can earn over 6 figures at a regional firm. Additionally, because Enrolled Agents are federally designated, they can work in any state in the country. And, with the increased convenience and reliability of telecommuting technology, a small firm can serve clients nationwide. For example, a small Enrolled Agent-run firm in rural Nevada could expertly serve clients in New York, California, or Alabama. Therefore, the ability to expand your client base beyond state borders is an advantage enrolled agents have over CPAs. You may be able to find what you’re looking for with either type of professional, as both types of professionals are equally qualified to perform similar tasks.
So, an Enrolled Agent in the right region who builds up a great interstate reputation and client base can certainly out-earn CPAs in the same area. Therefore, because the CPA is a state certification, not a federal one, a CPA may want to earn an Enrolled Agent designation as well to expand her credentials and earning potential. In general, CPAs earn more than EAs in all career levels; however, the CPA credential requires significantly more schooling, time and up-front costs than the EA credential. Additionally, the EA credential is more client-focused, with a variety of career paths.
What’s more, when an Enrolled Agent runs a small agency or brokerage that offers complete, specialized tax solutions for its clients, she can expand her earning potential even more. And, Enrolled Agent salaries are on the rise at larger firms and corporations, too. So, if you’re just starting out as an Enrolled Agent, you can expect to make somewhere between $30,000 and $40,000 annually. Because Enrolled Agents have the authority to represent clients before the IRS, they can fulfill a more specialized niche than non-enrolled tax preparers and accountants. Therefore, while CPAs do earn more on average than enrolled agents in the short run, the potential for earnings over the span of a career can be higher for enrolled agents.
Navigating the Tax Season: EAs and CPAs at Work
Yet, in the mile-high city, over half of the EA salary figures posted are above $112,000 annually. And while they say everything’s bigger in Texas, this statement doesn’t necessarily hold true for Dallas Enrolled Agent salaries. But the average EA salary in Dallas for jobs posted in the area pay between $36,674 and $53,100 annually. According to a recent search on Indeed.com, over half of the Enrolled Agent jobs in Atlanta pay more than 6 figures. Therefore, the EA salary range in that city is a little lower, with the average salary about $38,197 to $55,306.
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These are both factors to weigh alongside salary numbers for each profession. In addition to traditional accountants, a lot of mid-sized to large corporations benefit from hiring a full-time enrolled agent. Similar to having a corporate attorney, having an Enrolled Agent on staff helps many companies stay on top of their complex tax issues. For instance, corporations rely on Enrolled Agents to advise them on policy, prepare taxes, and represent them in audits and other proceedings before the IRS. To become a CPA, a person must take 150 hours of public accounting courses, typically done at a college or university.
Gender Breakdown for Enrolled Agent (EA)
- When deciding between an EA or a CPA, you will see that both types of professionals are well-qualified.
- EAs, while potentially earning less on average, specialize in tax law and regulations.
- Different specializations, such as tax preparation or financial consultation, may command varying compensation levels.
Once completed, you are listed on the IRS’ RPO database as an official “Annual Filing Season Program Participant”. If you’re a sole proprietor or self-employed, an EA can be more suited to your specific tax needs. They offer more focused tax services, often at a lower cost, making them ideal for simpler business structures. EAs are federally authorized to represent taxpayers before the IRS and have unlimited representation rights. This means EAs can represent any taxpayer, whether they prepared their income tax return or not.
Exam Review
Enrolled Agent salary numbers in Los Angeles show that about half of the jobs available pay in the six-figure range. And finally, salary numbers for enrolled agent jobs in San Diego range from $39,906 and $57,780. In New York City, the average salary for an Enrolled Agent is above the national average, with NY EAs making over $51,000 on average. Additionally, a cursory glance at Boston EA jobs reveals that salaries range anywhere from $41,653 and $60,309.
Firms & Groups
Determining an Enrolled Agent’s (EA) salary involves several key factors. While precise figures may vary, understanding these elements can provide insight into potential earnings. The most highly specialized Enrolled Agent probably isn’t going to be earning as much at a smaller organization as they could at a larger one. Some larger organizations pay their entry-level Enrolled Agents more than smaller organizations pay experienced Enrolled Agents. Tax preparers work with taxpayers to complete federal and state tax returns.
CPAs help clients set and achieve financial goals through money management and financial planning. These goals could include anything from putting a down payment for a home to opening a new branch of business across the country. In other words, a CPA is the go-to if you’re looking for a broad scope of expertise. However, the CPA credential requires significantly more schooling, time, and upfront costs than the EA credential.
Enrolled Agents in Charlotte also earn less than the national average at about $42,295. If you have a more complex business environment or need extensive accounting services beyond taxes, a CPA is your go-to professional. CPAs can offer a holistic approach to your business and personal financial needs, from tax planning to strategic financial planning. When deciding between working with an EA or a CPA, you can rest assured that both types of professionals are well-trained. They must pass rigorous exams and can do difficult and demanding work for clients. And because tax attorney fees can often climb well into the four figures, both CPAs and EAs are also affordable alternatives for those who need help figuring out tax obligations.
