So i am considering switching from trying to get my CPA and going for EA. Have anyone done that, is that a mistake? I currently work for small tax firm and everyone there are EA and firm is doing very good. It seems like EA exam is much easier.
It really depends on what your career aspirations are. You will see “CPA or on track to complete CPA” on job descriptions much more often than EA. If you plan to stay in tax, that shouldn't hurt you too much.
But if you're able to sacrifice the time to complete the CPA, I'm sure more doors would be open to you.
Yes it is a mistake. Hourly rate for an EA will probably top out about 150. I personally squeezed $200/hour out of clients but I work at a CPA firm. CPA rates for tax work usually run about 240-350 and higher for partner level CPAs. 400-500 in a larger firm for partners.
EA is an easy fix for now, but eventually you will want CPA after your name. You can probably knock out the EA is a couple months just to have a designation, and then refocus your energy and time on the CPA exam. You will thank me later. Advice from a CPA/EA. Temporary fix.
Memento Mori - Kingston NY CPA & EA (SUNY Albany 2002)
I agree with Recked. I'm also a CPA/EA. My .02: study for Reg, take the EA while preparing for Reg, and keep pushing through to CPA. Someone said EA=Nurse, CPA=Doctor.
I‘m also passed EA exams than took REG. I was tight on my budget that time, so I used EA exam bulletin for identification of testing content and IRS tax map for preparation and get a test bank from Passkey learning. Then I subscribed to Ninja, read business law section on book and dig down into MCQ test bank. I passed Reg with 88 on first try, so I think it was a good strategy. Good luck, Silent!
My personal experience, I got an EA for couple months study first because I know it is good selling point for an interview. After few years, I am working on CPA exams because I know it is going to be a long journey. Probably you can try my way. EA is easy for people who worked for tax position.
Have good faith in yourself on the way of studying CPA exams😄
Thank you everyone for reply. It seems that with exception of lower billing rate, there is not really much of downside to EA. Yes i understand that there is stuff that EA can't do such as audit etc but personally not looking in to getting in to that .
EA would be good choice if you want to stick to the tax route rather than accounting. Not sure there is a comparable tax specific certification. The only other thing i've heard of people doing for tax is JD/LLM (in tax) but that doesn't sound like the route you want to go.
Recked, probably we live in different New Yorks… The rates you describe in NY are virtually nonexistent on the market. $150 an Hour is considered to be a relatevely high rate for CPA; $350 per hour you can get if you hold a mashine gung in your hands, without it it would be unrealistic…
AUD - NINJA in Training BEC - 69 FAR - NINJA in Training REG - 89
We can agree to disagree on this.
I tell all new clients flat out my rate is $300 an hour, and personal returns start at $300.
People are willing to pay it. All my clients come by word of mouth, so they already know the quality of the service they will be receiving. It's working well for me so far.
I was charging $150/hour as an EA. I guess it also depends on your experience level.
Memento Mori - Kingston NY CPA & EA (SUNY Albany 2002)
Clients don't know what an EA is, they'll think you are a tax preparer like H&R block. You could explain to them that you could represent them in front of the IRS, but they also don't care. They do care if you are a CPA though, and consider you an expert if you have your CPA.
I also got my EA while studying for the CPA exam, the test was relatively easy and if you've worked at a tax firm for a couple years, you should be able to pass it. I live in CA my billing rate before the EA was $180, $200 after my EA and its at $275 after my CPA. Most importantly the feeling I get from telling people I'm a CPA is a lot better than telling people I'm an EA.
Recked, ” All my clients come by word of mouth” – this is the key phrase!!!
You can charge some higher rates if people come to you as the result of your personal reputation! But if you are oriented for “mass production” and expansion (especially targeting lower-middle class), you will be forced to offer your services at much lower rates.
$300 – it is a “boutique” rate, inflated by reputation or marketing.
$150 – is the rate that majority of CPAs would be willing to accept in NY. And at this point the monetary difference between CPA & EA I would estimate just about 20-35%.
Just a reminder: despite the “brilliant” data from tons of websites, most of CPAs in NY with just 1-2 years of experience would be glad happy to accept a position with the salary of 55K…
So, I do not deny the value of CPA…
AUD - NINJA in Training BEC - 69 FAR - NINJA in Training REG - 89
Partner rates at firms in my area run from $240-$350 and higher, depending on the size of the firm.
I know because I actually talk to partners from other firms. Like I said, we'll agree to disagree.
I'm not talking a staff CPA with 1-2 years of experience here. I've been in the game for 18+ years now.
I put the value for my services on the same level as a lawyer. The focus of my practice is small business(under $10mil) and self employed people.
My target demographic is not the lower middle class that can be serviced by H&R Block, Liberty or Turbotax.
Why work harder, for more hours, for less money to service the “mass production” service area. Build the life you want to live.
Memento Mori - Kingston NY CPA & EA (SUNY Albany 2002)
Why would you target the lower middle class? If you want to make money in tax, you target business owners so you can do their individual return plus their corporate return.
Regardless, you're getting scammed if you only make 55k in NYC if you have your CPA. That's the rate for someone living in nowhereville, Nebraska.
Why would you target the lower middle class? If you want to make money in tax, you target business owners so you can do their individual return plus their corporate return.
Regardless, you're getting scammed if you only make 55k in NYC if you have your CPA. That's the rate for someone living in nowhereville, Nebrasa.
Bill rate and hourly wage are two completely different things. As an audit staff my bill rate was $150/hr, but my hourly rate was less than $30/hr working for a national mid-sized firm. Partner bill rates went as high as $500-800/hr and they can make anywhere from $350-$500K+/yr in salary depending on size of firm and client book of business. I live in Los Angeles and I am sure that NY is as high or even higher when it comes to these figures. Think you guys are confusing the two terms.
As far as EAs go, an EA cannot become a partner of a CPA firm or the Tax Director of a private company, so you are limited in that respect career wise and EAs make much less than CPAs overall. If you are comfortable topping out at a lower earnings potentials then just do the EA (ie: the Easier Answer). However, at some point you will regret not obtaining your CPA and will eventually pursue it down the line, so you might as well start it now. I like the plan of getting your EA now, then roll right into taking REG and pushing forward to get your CPA.
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