Certified Public Accountant vs. Tax Preparer: Do You Need a CPA or Tax Professional for Your Return?
Choosing the right tax professional can save you money, reduce risk, and give you confidence at filing time. If you’re a Texas business owner searching for the difference between a CPA, tax preparer, and accountant, this guide breaks down who does what, and when hiring a Fort Worth CPA like Hecht & Associates makes the most sense.
Questions about your situation? Book a complimentary discovery call with our lead CPA, David Hecht. He’ll listen, understand where you are, and map the simplest next step.
What’s the Difference Between a CPA vs Tax Preparer?
At a high level:
CPAs (Certified Public Accountants) are state-licensed professionals trained in accounting, taxation, and financial reporting. They can advise on entity structure, Texas Franchise Tax, multi-state filings, financial statements, and IRS representation.
Tax preparers is a broad term: it can include CPAs, Enrolled Agents (EAs), or uncredentialed preparers. Many are excellent at basic return prep; some focus on volume over planning.
Educational Requirements and Certification Processes
CPA: Bachelor’s degree + additional coursework (typically 150 semester hours), pass the Uniform CPA Exam, meet state experience and ethics requirements, and complete continuing professional education (CPE) every year. (In Texas, CPAs are licensed by the Texas State Board of Public Accountancy.)
Tax Preparer (non-credentialed): Must have an IRS PTIN to prepare returns for compensation. No specific degree or license is required in Texas. Some complete the IRS Annual Filing Season Program (AFSP) each year.
Enrolled Agent (EA): Federally credentialed by the IRS after passing the Special Enrollment Examination (or qualifying IRS experience) and ongoing CPE.
Service Scope: Beyond Tax Preparation
CPAs: Individual and business tax returns, year-round tax planning and tax strategy, entity selection and S-Corp/partnership guidance, Texas Franchise Tax compliance, sales & use tax, payroll setup, bookkeeping and controller/CFO services, cash-flow modeling, financial statement preparation (compilations/reviews), IRS and state representation.
Tax Preparers (non-credentialed): Typically return preparation and basic tax questions. Planning depth and business advisory vary widely.
EAs: Deep tax specialization; many focus on complex returns and IRS controversy.
Representation Rights Before the IRS
CPAs & EAs: Unlimited representation rights before the IRS (audits, appeals, and collection).
Non-credentialed preparers: Limited or no representation rights. AFSP participants may represent clients for the returns they prepared, but not before IRS appeals or counsel.
When Do You Need a Certified Public Accountant vs. a Tax Preparer?
Complex Tax Situations That Require a CPA
Choose a CPA when you need strategy, not just data entry.
Especially consider a CPA if any of these apply:
You own a pass-through entity (LLC taxed as S-Corp, partnership) and issue/receive K-1s
Texas Franchise Tax filing, combined groups, or planning around margin deductions
Multi-state revenue, remote employees, or marketplace/e-commerce sales tax
Buying/selling a business or major assets; depreciation/§179/bonus decisions
Significant investments, stock options, rentals, short-term rentals, or crypto
IRS/State notices, audits, payment plans, penalties, or late/unfiled returns
Year-round tax planning (reasonable compensation for S-Corp owners, retirement and HSA strategies, estimated taxes, owner draws/dividends)
Straightforward Tax Returns and Non-Credentialed Preparers
A basic W-2 only return, standard deduction, and no dependents, rentals, stock sales, or crypto? A reputable preparer or DIY software may be fine. If your situation changes mid-year (new business, rental, home sale), check with a CPA before year-end to plan rather than react.
Business Tax Planning and Strategy Considerations
If you’re weighing LLC vs S‑Corp or how to pay yourself, a CPA‑led tax strategy helps you file taxes accurately, minimize tax liability, and avoid payroll compliance pitfalls.
We model scenarios, factor Texas rules, and help you avoid “phantom savings” that create payroll compliance headaches.
Understanding Tax Accountants: How They Differ from CPAs and Tax Preparers
Tax accountant usually describes someone who focuses on tax work. They may be a CPA, an EA, or an experienced preparer without a licensure designation.
Tax Accountant Qualifications and Specializations
Could hold the CPA or EA credential.
May specialize: real estate, contractors, professional services, medical practices, e-commerce, nonprofits, or high-net-worth planning.
When a Tax Accountant Might Be Your Best Option
If you’re primarily seeking return accuracy and industry-specific know-how, a seasoned tax accountant (ideally CPA or EA) can be a great fit, especially when paired with year-round access for planning questions.
Enrolled Agents vs. CPAs vs. Tax Preparers: Comparing Tax Professionals
What Makes Enrolled Agents Unique
EAs are federally licensed tax experts. Many focus on IRS representation and complex individual/business returns.
They don’t typically handle broader accounting/financial reporting, but some do bookkeeping and advisory.
Comparing Representation Rights and Tax Expertise
CPAs and EAs can represent clients before the IRS for audits, appeals, and collections. Non‑credentialed preparers generally cannot, beyond the returns they prepared.
| Professional | License & Training | IRS Representation | Typical Scope |
|---|---|---|---|
| CPA | State-licensed; 150 hrs education; CPA Exam; CPE | Unlimited (audits, appeals, collections) - Can represent clients before the IRS | Tax returns & planning, entity strategy, TX Franchise Tax, bookkeeping, controller/CFO, financial statements |
| EA | IRS-licensed; Exam; CPE | Unlimited - Can represent clients before the IRS | Tax returns, planning, IRS controversy |
| Non-Credentialed Preparer | PTIN; AFSP optional | Limited/None | Basic return prep; planning varies widely |
How to Choose Between a CPA, Tax Preparer, or Tax Accountant
Assessing Your Tax Situation and Needs
Simple + low risk → Reputable preparer or DIY (with a CPA check if anything changes).
Business/Investments/Multiple States/IRS letters → CPA or EA.
Year-round strategy (S-Corp pay, retirement, estimated taxes) → CPA to reduce current and future tax liability through proactive planning.
Cost Considerations Across Different Tax Professionals
Fees reflect complexity, credentials, and scope. A lower prep fee can cost more in missed deductions, entity mistakes, or notices. Ask for a transparent estimate and what’s included (planning, support for notices, e-signature, secure portal, bookkeeping cleanup, etc.).
Questions to Ask Before Hiring a Tax Professional
What credentials do you hold (CPA, EA)? What CPE do you complete?
Do you work with businesses like mine (contractors, agencies, healthcare, e-commerce, nonprofits)?
How do you support year-round questions and tax planning?
What’s included in your fee (bookkeeping adjustments, state returns, TX Franchise Tax, extensions)?
Will you help with IRS/State notices?
How do you protect my data (client portal, encryption, MFA)?
What’s your turnaround time, and who will I communicate with?
Want a quick, straightforward answer for your situation? Book a free discovery call with Hecht & Associates. We’ll review your facts and recommend the right level of service with no pressure.
Tax Preparation Services: What Each Type of Professional Offers
CPA Tax Services Beyond Filing Returns
Proactive tax planning to minimize liability before year-end
Guidance to file taxes correctly for federal, and multi-state situations.
Entity selection & S-Corp analysis (including reasonable compensation and payroll setup)
Texas Franchise Tax filings and margin optimization
Sales & use tax setup for Texas and marketplace sellers
Bookkeeping, payroll, and controller/CFO services
Financial statement preparation (for lenders, boards, grants)
IRS and state representation (notices, payment plans, penalty abatement)
Guidance on recent tax code changes and how they impact deductions, credits, and entity elections.
Specialized Tax Services by Professional Type
EAs: IRS controversy, complex returns, multi-year cleanup, offer-in-compromise guidance
Experienced Preparers: Efficient filing for simple returns; AFSP participants may offer limited IRS support for returns they prepared
Fort Worth Focus: When Local Matters
Texas-specific issues—Franchise Tax, sales & use tax, Texas Workforce Commission filings, local incentives, and fast-moving growth across DFW—benefit from a local CPA who understands the regional landscape and lender expectations.
Not Sure If You “Need a CPA”? Use This Quick Checklist
I own/plan to start a business (LLC, S-Corp, partnership)
I received/issued K-1s
I sell in multiple states or through marketplaces
I hired my first employee / run payroll
I got an IRS or Texas notice
I owe a lot at filing and want to fix it before next year
I’m applying for financing and need clean financials
If you checked one or more, talking with a CPA is likely the most efficient (and cost-saving) next step.
FAQs
Do I need a CPA for a simple W-2 return?
Not necessarily. If your return is straightforward, a reputable preparer or DIY can work. If anything changes—new business, rental, crypto—check with a CPA before year-end.
Is an Enrolled Agent as good as a CPA?
EAs are excellent tax specialists with unlimited IRS representation rights. CPAs cover tax plus broader accounting/advisory. Choose based on whether you need broader accounting support and advice on how tax law interacts with financial reporting and entity structure.
What’s the difference between an accountant and a CPA?
“Accountant” is a general job title. A CPA is state-licensed, exam-qualified, and maintains continuing education; they can represent you before the IRS and provide a wider range of services.
Can a non-credentialed preparer represent me before the IRS?
Generally no. AFSP preparers have limited rights for returns they prepared (not appeals/counsel).
Let’s Make Tax Season Easier
We believe great accounting feels like a partnership. If you’re unsure which professional you need, we’ll help you decide, even when that means pointing you to a simpler option.
Book a free discovery call with David Hecht, our lead Fort Worth CPA. We’ll review your goals, outline clear next steps, and handle as much as you need.