CPA vs accountant vs enrolled agent

The three titles get used interchangeably in everyday conversation, but they describe different credentials, different scopes of practice, and different rights when something goes wrong. Picking the right one usually depends less on the title and more on what you actually need.

Side-by-side comparison

What a CPA does

A certified public accountant has passed a four-section national exam, met state education and experience requirements, and holds an active license from a state board of accountancy. The license is what allows a CPA to sign audited financial statements, which banks, investors, and regulators rely on. CPAs also do tax, advisory, internal controls, valuation, and business consulting. Most state boards require ongoing continuing professional education to keep the license active.

What an enrolled agent does

An EA is licensed directly by the IRS. The credential is earned by passing the three-part Special Enrollment Examination or through prior IRS work experience. EAs focus almost exclusively on tax: return preparation, planning, and representation before the IRS in audits, collections, and appeals. They have the same unlimited representation rights as CPAs and tax attorneys, which is what matters most in an IRS matter. EAs typically charge less than CPAs for equivalent tax work, especially for individual returns and back-tax resolution.

What an unlicensed accountant or bookkeeper does

"Accountant" is not a regulated title. Many people who run bookkeeping practices call themselves accountants. They can record transactions, reconcile accounts, run payroll, and prepare basic tax returns if they have a PTIN. They cannot, however, give legal tax advice, sign audited statements, or represent you in an IRS exam. Most small businesses need both: a bookkeeper for monthly close and a CPA or EA for tax and advisory.

Which one is right for you

• Individual W-2 with simple deductions: tax software or an EA at the low end of the fee range.
• Self-employed or single-member LLC: EA or CPA, depending on whether you also want advisory.
• S-corp, partnership, or C-corp: CPA. The combination of return preparation, planning, and reporting standards usually justifies the credential.
• Audit, SBA loan, due diligence: CPA. Audited financials are non-negotiable.
• Back taxes or IRS exam: CPA or EA. Both are fully credentialed for IRS representation. EAs often cost less.
• Monthly bookkeeping only: bookkeeper, supervised by a CPA or EA at year-end.

How to verify the credential

• CPA: every state board of accountancy publishes a license lookup. Search the name and state. The license must be active and free of disciplinary action.
• EA: the IRS Office of Enrollment maintains a directory of EAs. You can also request the enrollment card.
• Tax preparer (PTIN holder): the IRS Directory of Federal Tax Return Preparers lists everyone with a PTIN and any additional credentials they hold.

Get matched with the right credential

Frequently asked questions

Related: how to choose a CPA · what does a CPA do