CFP vs EA
The CFP is a comprehensive financial planning certification covering investments, retirement, estate, and tax planning. The EA is an IRS-issued credential focused solely on tax preparation and representation. CFP requires a degree; EA has no education requirements.
Side-by-Side Comparison
| Feature | CFP | EA |
|---|---|---|
| Full Name | Certified Financial Planner | Enrolled Agent |
| Exam Cost | $825-$1,025 | $801 (3 parts at $267 each) |
| Passing Score | ~70% (Modified Angoff) | 105/130 scaled score |
| Questions | 170 multiple-choice | 300 (100 per part × 3 parts) |
| Time Limit | 6 hours (two 3-hr sessions) | 10.5 hours (3.5 hrs × 3 parts) |
| Study Time | 250-400 hours | 150-250 hours |
| Difficulty | Challenging | Moderate-Challenging |
| Prerequisites | Bachelor's degree + CFP program + 4,000-6,000 hrs experience | None - no degree required |
| Exam Body | CFP Board | IRS |
Key Differences
- 1CFP covers all financial planning; EA focuses only on taxation
- 2CFP requires bachelor's degree + 4,000-6,000 hrs experience; EA has no prerequisites
- 3CFP exam is 6 hours; EA is 10.5 hours across 3 separate exams
- 4CFP credential is from a nonprofit board; EA is a federal license from the IRS
- 5CFPs act as fiduciaries; EAs follow IRS ethical standards
- 6CFP costs $4,450-$11,200+ total; EA costs $1,272-$1,972 total
- 7CFP average salary $100K-$192K; EA average salary $55K-$75K
What Each Exam Allows You To Do
CFP
- Provide comprehensive financial planning
- Manage investments and retirement planning
- Create estate and tax planning strategies
- Act as a fiduciary for clients
- Work at RIAs, wealth management firms, or independent practice
EA
- Prepare individual and business tax returns
- Represent clients before ALL IRS offices
- Handle audits, appeals, and collections
- Federal credential - practice in any state
- Start your own tax practice
Who Should Take Each Exam?
Take the CFP if you...
- →Aspiring financial advisors
- →Those wanting holistic planning careers
- →Professionals targeting high-net-worth clients
- →Those seeking fiduciary designation
Take the EA if you...
- →Tax preparers seeking advancement
- →Those without college degrees
- →IRS representation specialists
- →Seasonal/part-time tax professionals
Which Should You Take First?
It depends on your career goals. Choose CFP if you want a holistic financial planning career advising on investments, retirement, and estate planning. Choose EA if you want to specialize in tax preparation and IRS representation without requiring a degree. Many professionals pursue both for comprehensive tax planning expertise.
Frequently Asked Questions
QCan I have both CFP and EA credentials?
Yes, many financial professionals hold both. The EA provides deep tax expertise that complements the CFP's broader planning knowledge. This combination is valuable for serving clients with complex tax situations.
QWhich pays more - CFP or EA?
CFPs typically earn significantly more, with average salaries of $100,000-$192,000 compared to EAs at $55,000-$75,000. However, EA + CFP holders can command even higher compensation due to their comprehensive service offering.
QWhich is easier to obtain?
The EA is generally easier to obtain - no degree required, lower total cost ($1,272-$1,972 vs $4,450-$11,200+), and faster completion (6-12 months vs 18-24 months). However, the EA Part 2 (Businesses) goes deeper into tax than the CFP exam.
QDo both allow tax planning?
Both can provide tax planning advice, but from different angles. CFPs incorporate tax planning into comprehensive financial strategies. EAs specialize in tax compliance, preparation, and IRS representation. EAs have the unique ability to represent clients directly before the IRS.
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