Accounting is one of the most crucial tasks for a business. For small businesses, it becomes all the more important as taxation, financial statements and the systematic organization of all the financial details are new and unfamiliar. Hence, keeping records updated, maintaining consistency and accuracy in records is very important. Preparing taxes and filing returns is a complicated and difficult task. It�s like an entirely new world with various tax rate slabs, all the different kinds of taxes to be filled and many returns to file. You need a professional who understands your business and is also familiar with your niche (in which your business operates) and knows all about taxes to help you in this process.
While looking for a right person for managing your accounts, you may come across both enrolled agents and CPAs. Having a basic understanding of various different accreditations is essential before hiring a licensed tax professional, who will help you in your taxation and provide you guidance regarding all your financial or accounting needs. Let�s start with knowing the basics.
An enrolled agent (EA) and certified public accountant (CPA) are both advisors that will help you become more tax efficient and make sound investments.
What Is An Enrolled Agent (EA)?
An enrolled agent is a professional who has passed a full-fledged three-tier Internal Revenue Service examination. An IRS enrolled agent is certified federally. EAs cover everything related to tax like payroll, retirement taxes, income estate, return, levies, etc.
They are recognized by the government as tax specialists once they qualify for the exam. Enrolled agents represent the client or business before the IRS on various issues. These include appeals, audits, or tax collection. All Enrolled Agents in Mesa perform their work under the guidelines and follow the policies provided by IRS. Enrolled agents are required to receive continuing education training each year and ahere to all the new policies.
What Is A CPA?
CPA stands for certified public accountant. There are many CPAs across the country who undergo certain education in finance and training so that they can handle the account and finances of a business. In Mesa, AZ, a CPA undergoes rigorous and updated financial training.
They are certified and equipped with enough experience to manage financial planning, taxation, and accounts of a business. It is mandatory for a CPA to pass the complete uniform CPA examination. It is a nationwide federally governed test. Comprehensive programs and continuous education ensures all CPA of Mesa, Arizona are aware of and adhere to all the new policies.
CPAs usually work for public accounting firms. They specialize in performing almost all the activities of accounting. They usually assist consultants and advisors for businesses or individuals. CPAs help with setting business goals, financial planning, and management of money.
The Difference between an Enrolled Agent and a CPA:
The professional focus of a CPA is on broad accounting and covers some part of taxation and financial services for business. Whereas, an Enrolled Agent specializes in providing tax services to businesses and individuals. A CPA is required to pass 150 hours of undergrad courses from state education. An Enrolled Agent must have five years of IRS experience and have passed the EA exam. Make sure to check for qualification and practice of EA or CPA you are hiring for your business.
Why you Need an Enrolled Agent for your Business?
First and foremost, an Enrolled Agent is helpful when you are establishing the legal entities of your business. An enrolled agent can help you understand the taxation process depending on the niche of your business. Let�s take a look at the responsibilities of an EA in detail:
1) Tax preparation and filling: An Enrolled Agent will assist you in preparing and filing taxes. Ensure that all documents and paperwork is done correctly, in compliance with federal laws.
2) Objective view: A tax professional�s responsibility is to take care of the taxation of your business and provide you with the right advice and objective view for your business.
3) Legal compliance: EA takes their training under IRS and hence they understand the importance of documentation in compliance with the law. They will help you to get all accounting done with utmost precision and all the taxes to be filled in at the right time. Your business with an EA will always be immune from any mistakes under federal laws.
An enrolled agent is a right choice for your business if you�re looking for tax services. They specialize in taxation and can also assist you in keeping your eyes on the your business goals by taking on tough financial planning responsibilities. Since they have undergone training by IRS, they will also help you with legalities when IRS gets involved.
An IRS EA is a skilled tax expert, so they can advise you about taxation across states. If the IRS wants to run an audit on your business, the EA can advocate for you with IRS. Enrolled Agents can help in filing tax returns, debt relief, tax liens for small businesses. They will help you in dealing with IRS in every capacity.
M&M Accounting LLC has experience of more than a decade of managing accounting for corporate and small clients. We�re a leader in providing services for small businesses and individuals for taxation and book-keeping requirements. The founder Nancy Stillings is an IRS enrolled agent and has been working with many businesses and individuals. Her experienced leadership makes M&M Accounting able to tackle small business needs and provide the best tax services.