Why use a CPA? - Montgomery, CPA LLC

Why Use a CPA?

The CPA exam is statistically the most difficult of all professional exams, more difficult than any law or medical bar. Just to be admitted to take the exam, candidates must have the equivalent of a master's degree in accounting from an accredited university—a 5-year investment just to be admitted to the exam. This ensures that every candidate has a thorough knowledge of accounting, tax, business law, and audit. Despite this, over 50% fail and never get to practice public accounting. Pass rates for law and medical bar exams are over 85%.

Many CPA candidates who fail the exam go on to excel in private industry as Controllers, Comptrollers, CFOs, or government auditors, reflecting the rigorous standards of the profession. In addition to passing the exam, candidates must also complete a 2-year apprenticeship working for another CPA and pass an FBI background check. This all equates to a very challenging 7-year commitment just to become a CPA—not to mention the ongoing requirements of Continuing Professional Education, peer review, and strict compliance with professional standards.

Category	CPA (Certified Public Accountant)	Enrolled Agent (EA)	Tax Attorney	Accountant	Tax Professional -all work should be supervised by a CPA	Tax Preparer -all work should be supervised by a CPA	Bookkeeper
Education Requirements	150 credit hours of college education (Bachelor's + additional coursework)	No degree required (must pass EA exam)	Juris Doctor (J.D.) degree + state bar exam	Typically Bachelor's in Accounting	Varies, no specific degree required	No formal education required	No formal education required
Exam Requirements	4 sections of the CPA Exam (AUD, BEC, FAR, REG); 16-hour total exam length (usually over 3 days); ~50% pass rate	3-part Special Enrollment Examination (SEE); focuses exclusively on tax law and representation	State bar exam + potentially a specialized tax certification	None	None	None	None
License Requirements	Licensed by state boards; requires 1-2 years of supervised work experience	Federally licensed by the IRS; no supervised work experience required	Licensed by state bar association	No licensing required	No licensing required	No licensing required	No licensing required
FBI Background Check	Required	Not required	Not required	Not required	Not required	Not required	Not required
Personal Tax Compliance	Must have filed and paid personal taxes	Must have filed and paid personal taxes	Varies by state; generally expected	Not required	Not required	Not required	Not required
Carries Professional Liability Insurance	Yes, typically required or strongly recommended	Optional	Yes, typically required	Optional	Optional	Optional	Not typically
Continuing Education	40 hours annually to maintain CPA license	72 hours every 3 years to maintain EA status	Continuing legal education (varies by state)	None	Varies; may not have requirements	None	None
Tax Expertise	Extensive tax knowledge; expertise in tax planning, compliance, and strategy	Specializes in tax law and IRS representation	Strong tax law expertise; specialized in complex legal matters	Moderate tax knowledge	Basic to moderate tax knowledge	Basic tax knowledge	Minimal tax knowledge
Financial Expertise	Broad expertise including auditing, financial reporting, tax, consulting, and forensic accounting	Focused on tax-related representation and compliance	Limited to legal and tax aspects	Financial analysis and reporting	Varies; generally limited to basic returns	Limited to basic tax preparation	Primarily focuses on maintaining accurate records
IRS Representation	Full representation rights before the IRS	Full representation rights before the IRS	Full representation rights before the IRS	None	Limited or none	Limited to returns they prepared	None
CPA Automatically Qualifies for EA	Most CPAs practicing in tax automatically qualify for EA designation	Not applicable	Not applicable	Not applicable	Not applicable	Not applicable	Not applicable
Cost of Services	Moderate to high (reflecting advanced expertise and qualifications)	Moderate	High (reflecting legal expertise)	Moderate	Low to moderate	Low	Low
Best For	Comprehensive financial and tax strategies, high-stakes tax planning, business growth assistance	IRS audits, appeals, and collections; specialized tax issues	Legal disputes, complex estates, international tax matters	Financial reporting and business accounting	Simple to moderately complex tax returns	Basic tax returns	Managing day-to-day bookkeeping

What Sets CPAs Apart?

Rigorous Qualification Process: Becoming a CPA requires extensive education (typically 5 years of study), a challenging 16-hour exam with a 50% pass rate, and supervised work experience.
FBI Background Check & Personal Tax Compliance: CPAs must pass an FBI background check and demonstrate compliance by filing and paying their own taxes.
Comprehensive Expertise: CPAs practicing in tax automatically qualify for the EA designation, underscoring their unparalleled expertise in tax representation and compliance.
IRS Representation: CPAs can represent you before the IRS for audits, appeals, and collections.

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