Business owners often ask whether they need an Enrolled Agent (EA) or a Certified Public Accountant (CPA). Here’s the short version: EAs are federally credentialed tax specialists with nationwide representation rights before the IRS, while CPAs are state-licensed accounting professionals whose work spans tax, financial reporting, audit/assurance, and advisory. At Henriquez Accounting & Tax Services, you don’t have to choose—we coordinate bookkeeping, tax, and advisory so you get clean numbers and confident decisions. Explore Bookkeeping, Tax Preparation, and Outsourced Controller/CFO.

EA = Federal Tax Specialist CPA = Broad Accounting License

Both can prepare taxes. Both can represent you (EAs nationally; CPAs per state licensure). Choose based on your needs.

Quick Definitions

Enrolled Agent (EA): Federally authorized by the IRS. Focus: tax preparation, planning, and representation (audits, collections, appeals) for individuals and businesses nationwide.
Certified Public Accountant (CPA): Licensed by a state board of accountancy. Focus: accounting and assurance (financial statements, audit/review/compilation), plus tax and advisory. Practice rights vary by state.
Tax Attorney (when needed): Licensed attorney with specialization in tax law; used for complex disputes, court petitions, criminal tax investigations, or advanced legal opinions.

Licensing, Practice Rights & Scope

Enrolled Agent (EA)

Federal credential—practice before the IRS in every state.
Deep tax specialization (prep, planning, audits, collections, appeals).
Continuing education (CPE) focused on taxation and ethics.

Certified Public Accountant (CPA)

State license—broader scope: financial statements, assurance, tax, and advisory.
Eligible for attest services (audit/review/compilation) subject to state rules.
CPE across accounting, auditing, ethics, and tax topics.

Who Should You Hire—and When?

Hire an EA when your priority is tax: entity choice/S-Corp modeling, quarterly estimates, multi-state sales/use tax considerations, IRS notices, audits, collections, or appeals.
Hire a CPA when you need financial reporting: GAAP financials, audits/reviews/compilations, lender or investor requirements—plus tax and advisory.
Engage a Tax Attorney for high-risk legal matters: tax court filings, criminal investigations, complex settlements, privilege needs, or intricate transactions needing legal opinions.

How We Support Your Business (Month–Quarter–Year)

Monthly

Bookkeeping and reconciliations; close with P&L, Balance Sheet, Cash Flow.
AR/AP cadence; 13-week cash forecast; documentation discipline (receipts, W-9s).

Quarterly

Tax projections & vouchers; payroll/sales tax checkups; entity/comp reviews (e.g., S-Corp reasonable comp).
KPI dashboard: margins, runway/DSCR, DSO/DPO/DIO; pricing/budget updates.

Annually

1099 filings; fixed-asset rollforward & depreciation; business & owner returns.
Year-end planning and next-year roadmap.

Selection Checklist (EA or CPA)

Credentials in good standing (EA/CPA) and current CPE.
Scope & SLAs in writing: deliverables, deadlines, response times.
Security posture: secure portal, MFA, e-signature, retention policies, least-privilege access.
Industry experience: construction, e-commerce, real estate, restaurants, professional services, etc.
Planning cadence: monthly close + quarterly reviews, not just year-end tax prep.

Common (Costly) Situations We Resolve

Late/incorrect quarterly estimates → penalties and interest.
Wrong entity or late S-Corp election → excess self-employment tax.
Unreconciled accounts and missing support → audit exposure and missed deductions.
Multi-state sales/use tax for e-commerce and services → surprise liabilities.

Rule of Thumb: If you mainly need tax planning and representation, an EA is a great fit. If you need audited or GAAP financials, you’ll want a CPA involved. Many growing businesses benefit from both—coordinated.

What You’ll Get When You Work With Us

Clean monthly books and a reliable close checklist.
Quarterly tax projections with vouchers and due dates.
IRS/state notice handling and representation by an Enrolled Agent.
Owner dashboard: margins, cash runway, and tax-ready KPIs.
Secure portal, e-sign, and clear, documented processes.

Book a 30-Minute Consultation

FAQs

Can both EAs and CPAs represent me before the IRS?

Yes. EAs have nationwide practice rights before the IRS. CPAs can also represent clients before the IRS; their licensure is at the state level, but representation rights are recognized federally.

Who is better for tax planning—EA or CPA?

Both can be excellent at tax. EAs are tax-specialized by design; many CPAs also have deep tax expertise. Choose based on their actual planning process, responsiveness, and results with businesses like yours.

When do I need a tax attorney instead?

For matters requiring legal privilege or litigation (e.g., tax court petitions, criminal investigations, complex settlements). We partner with attorneys when a legal strategy is necessary.

Can I keep my bookkeeper and add your EA/CPA team?

Absolutely. We coordinate with in-house or third-party bookkeepers. We handle close oversight, tax, and planning; they handle day-to-day coding.

Do you offer both bookkeeping and tax?

Yes—monthly bookkeeping, quarterly planning, and annual returns—so your numbers stay clean and tax-ready all year.

Want a simple answer for your situation?

Tell us your goals, entity, and growth plans. We’ll recommend the right mix of EA/CPA support and set a clear month–quarter–year cadence. Talk to an Enrolled Agent today. Schedule Consultation

What Distinguishes an Enrolled Agent from a CPA?