Should Your Business Accountant Be a CPA?
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Episode Summary
In this episode of The Profit Pillars Show, Parker Stevenson, CEO of Evolved Finance and author of Profit Pillars, answers a common question for online entrepreneurs and modern small business owners: “Does my business accountant have to be a CPA?”
Parker explains why many U.S.-based business owners use “CPA” as shorthand for “accountant,” and why that assumption can lead to confusion about who’s actually best suited to prepare your small business tax return. He breaks down the CPA credential, rigorous, respected, and broad in scope, while clarifying that not all CPAs specialize in small-business tax preparation. Many CPAs are trained across auditing, corporate finance, and executive-level analysis, which is valuable in large-company settings but not always aligned with the daily needs of an online business owner who just wants accurate, timely filing and smart tax planning.
The episode highlights alternative tax credentials that can be a perfect fit for small businesses, especially online creators, coaches, agencies, and eCommerce brands across the United States. Enrolled Agents (EAs) are licensed by the IRS and focus specifically on tax preparation and representation, often the most relevant expertise for entrepreneurs. Parker also touches on tax attorneys, who typically handle complex consulting and legal matters, and PTIN holders who can file returns but cannot represent you before the IRS.
Beyond credentials, Parker emphasizes operational excellence: recent experience (within the last 3–5 years), responsiveness, capacity to handle workload, and proactive planning throughout the year. These factors drive accuracy, compliance, and long-term savings more than titles or degrees alone.
Finally, Parker shares how Evolved Finance, serving online and modern small businesses nationwide, pairs bookkeeping with proactive tax planning to help clients stay organized, compliant, and strategic year-round. If you’re seeking less stress and fewer surprises at tax time, this episode will help you choose the right accountant for your business, whether that’s a CPA, EA, or tax attorney.
Important links from this episode:
Profit Pillars Book: evolvedfinance.com/book
Evolved Finance Services: evolvedfinance.com/services
Finance Tools and Courses: evolvedfinance.com/learn
Frequently Asked Questions
Here are a few common questions business owners ask around this topic:
You do not need a CPA, an Enrolled Agent (EA) can fully prepare and file small business tax returns and represent you before the IRS. EAs are federally licensed by the IRS and focus specifically on tax law and preparation, making them a strong option for online businesses and service providers. What matters most is recent experience with business returns like yours, clear communication, and proactive planning. If you’re choosing between CPA and EA, evaluate their process, responsiveness, and client track record, not just the letters.
An Enrolled Agent (EA) is an IRS-licensed tax professional who specializes in tax preparation and representation. Because EAs focus exclusively on taxation, they’re often ideal for online business owners who need accurate returns, quarterly planning, and practical advice on deductibility, entity elections, and cash flow. Many firms pair EAs with bookkeeping teams to deliver year-round tax readiness and fewer surprises at filing time.
Hire a tax attorney when you have complex tax controversies, high-stakes legal exposure, or need advanced tax law interpretation and representation. Most small, online businesses do not need a tax attorney for annual filing—an EA or CPA usually provides all the compliance and planning you need. However, if you’re facing an audit, significant penalties, or complex restructuring, a tax attorney’s legal expertise may be worth the premium.
A PTIN allows a preparer to file and sign your return, but it does not authorize them to represent you before the IRS. For most small businesses, it’s wiser to work with an EA or CPA who can both prepare and represent you, and who has recent experience with business returns similar to yours. If a preparer only has a PTIN, ask who will handle IRS notices, representation, and tax planning throughout the year.
Prioritize recent (last 3–5 years) experience with businesses like yours, a clear tax planning process, capacity to meet deadlines, and responsive communication. Ask how they handle quarterly estimates, entity strategy (e.g., S-corp elections), bookkeeping alignment, and IRS correspondence. Avoid volume-based firms that rely on low fees and high throughput, accuracy, timeliness, and proactive planning matter far more for your cash flow and peace of mind.
Tax laws shift frequently, changes in administrations, legislation, and IRS guidance can materially impact your deductions, estimates, and year-end tax bill. That’s why you want a professional who’s actively filing many returns each year, stays current with changes, and proactively adjusts your plan. Up-to-date expertise protects you from penalties and helps you capture legitimate tax savings as rules evolve.
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The Profit Pillars Show
The Profit Pillars Show by Evolved Finance gives online entrepreneurs and modern small business owners the real-world guidance and insights they wish they had sooner. Each episode delivers actionable, straight-to-the-point advice on finances, operations, and overall business strategy, drawn from host Parker Stevenson’s years of experience helping entrepreneurs build stronger, more profitable businesses.