CPA or Enrolled
Agent
If you're good with numbers and like
working with them, you might like becoming an Enrolled Agent or
a CPA.
The IRS requires anyone practicing before them to have a
license. The licenses required are either an Enrolled Agent
(EA) or Certified Public Accountant (CPA) or Attorney.
Enrolled Agent (EA)
To become an enrolled agent, the basic requirement is that
you pass an exam. It is a non-trivial exam, covering tax law
for nearly every area. You can study for the exam by going
through all of the tax materials provided by the IRS if you
like. The IRS will even mail them to you if you ask. Another
way to study for the exam is to purchase a course. There are
online courses and classroom courses to choose from.
Certified Public Accountant (CPA)
A CPA requires more work and experience. The educational
requirements are that you have taken certain college level
courses. These are generally covered if you have earned a BA in
business or accounting, or if you have earned an MBA. For
everyone else, you can take the required classes at a community
college. You do not need a full college degree.
The experience requirements are a bigger gotcha. You need
thousands of documented hours of work as an auditor, for
example. The best way to get those hours is to work for an
employer as an accountant. Working on your own it is much more
difficult to document your hours.
Finally, the CPA exam is a big hurdle to jump. It is
notoriously difficult, and many people never pass while others
take it more than once before they pass.
If you want to be a recognized professional in the
accounting field, getting the CPA or EA licence is the best way
to go.
Accountants Working From Home
If you're going to start your home based business as an
accountant, you need a place where your clients can meet with
you. That place is either a location in your own home or you'll
be driving to your client's locations. I suggest a dedicated
home office with locked file cabinets, a good cross-cut
shredder, and all of the other standard features of a good home
office.
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