Tax Preparer vs. CPA: Which One Do You Really Need?
When tax season rolls around, many people ask: Should I hire a tax preparer or a CPA? The answer depends on your financial situation, but if you want to maximize your tax benefits and ensure accuracy, choosing the right professional makes all the difference.
At Doran Tax, our lead tax expert, Tony, is both a CPA and Enrolled Agent (EA) meaning he brings the highest level of expertise in tax preparation, strategy, and representation. Here’s why that matters for you:
The biggest difference comes down to education, expertise, and services offered:
Tax Preparers handle basic tax filing and do not require formal certification.
CPAs (Certified Public Accountants) undergo rigorous education, pass the CPA exam, and meet state licensing requirements. They specialize in tax planning, business consulting, and IRS representation.
An Enrolled Agent (EA) is a tax professional licensed by the IRS to represent taxpayers in audits, collections, and appeals. They have unlimited practice rights and must meet ongoing education requirements.
If you just need to file a simple tax return, a tax preparer might be sufficient. But if you want tax-saving strategies, business consulting, or IRS protection, a CPA is the better investment.
Can a Tax Preparer Handle Business Taxes?
Yes—but with limitations.
Tax Preparers can file returns for small businesses, freelancers, and self-employed individuals.
Enrolled Agents (EAs) have more authority than tax preparers and can represent businesses before the IRS.
CPAs go even further by providing tax planning, long-term financial strategy, and audit support.
If you own a business and want more than just filing, working with a CPA ensures you’re getting the best financial advice.
Should You Pay More for a CPA?
Absolutely—if you want to save more in the long run.
While CPAs typically charge more than tax preparers, the value they provide far outweighs the cost:
Tax Preparers charge between $150 - $400 per return.
CPAs charge between $400 - $2,000+, but they find deductions, minimize liability, and offer strategic tax planning.
A CPA doesn’t just file your taxes—they help you keep more of your hard-earned money.
Which One is Right for You?
If you only need basic tax filing, a tax preparer is fine.
If you want strategic tax planning, audit protection, or financial consulting, a CPA is the smart choice.
At Doran Tax, we provide expert CPA-level tax services that go beyond simple filings. Whether you’re an individual or a business owner, we’ll help you maximize deductions, minimize tax burdens, and plan for the future.