We get this question a lot, usually from someone who's just been quoted a rate by a CPA and is wondering why our engagement letter says "Enrolled Agent" instead. Both credentials qualify someone to prepare your taxes well. The difference is in what each credential is actually built for.
What a CPA is licensed for
A Certified Public Accountant is licensed at the state level, and the credential covers a broad range of accounting work: audits, financial statement preparation, corporate accounting, and yes, tax. Tax is one specialty among several a CPA might practice in, and depth in it varies firm to firm.
What an Enrolled Agent is authorized for
An Enrolled Agent is federally authorized by the IRS to represent taxpayers, and the credential exists for exactly one thing: tax. EAs pass a three-part IRS exam covering individual returns, business returns, and representation, and, unlike a CPA license, the EA credential is valid in every state, and its focus is tax. It's also the only credential, alongside CPA and attorney, that carries unlimited representation rights before the IRS, meaning an EA can represent you directly in an audit, appeal, or collections matter, in any state, at any level of the IRS.
When a CPA may be the better fit
CPAs can perform attest services, such as audits and reviews of financial statements, which Enrolled Agents cannot.
So which do you actually need?
If what you need is broad corporate accounting (audited financial statements, complex entity structuring across an accounting practice that also isn't primarily tax-focused), a CPA firm may be the better fit. If what you need is tax: preparation, planning, and someone who can stand behind you if the IRS has questions, an EA is a credential built for exactly that.
For most individuals and small businesses, that second list is the whole list. It's why we built this firm around the EA credential instead of general accounting practice. It's a narrower focus, on purpose.