01/01/2026
I know that designators for credentials often get mixed, thrown around, or that some have no clue but there are differences in these designations. I have read some peers post about not being detailed in taxes while some state non CPA's are a risk without the designation. There are other roles in between that specialize in certain things. While CPA has the highest credential for accounting, Enrolled Agents (EA) specialize in taxes. Attorneys do more litigation and representation, and bookkeepers handle payroll and books. There are also retirement planners, financial planners, CMA's, and PTIN holders for taxes. Many of these credentials cross some points at one time or another because in the end all roads lead to tax and reporting you must annually account for with your organizations.
The average person does not really know that you can be one or more of these things and that it may matter. A CPA does not mean a person is an expert in all fields. When it comes to representation there are some that can represent you on higher levels than others. CPA's, EA's, Attorneys have unlimited rights of representation before the IRS. The EA can represent in any state and is a license designated by the IRS. EA's must pass a test just like CPA's to get a license. CPA's have the right to audit publicly trading companies. CPA's like Attorneys are normally assigned to a state. Attorneys can represent clients in the court or in front of the IRS in their state or in the higher courts. If you are looking for retirement or financial planning, you may need a person that specializes in that. If you need bookkeeping or payroll that is another specialization.
A person can have all these designators. Normally that is not the case because Taxes alone are a huge knowledge base. There are regular PTIN tax preparers who have limited rights to represent their clients if they sign up for the AFSP program with the IRS. There are other things needed to send taxes and forms electronically to the IRS. If paid a person would need to put their name and credentials on the return.
This is not perfect or whole depiction of the entire industry, but it helps shed light on the differences.
GAAP and SEC for publicly traded companies is a lot different than the requirements of a private or small business not traded publicly. Tax preparers don't usually handle GAAP or SEC compliance and this is why CPA's are important or accountants for that specific area.
