If you’re searching for an accountant, you may have encountered the term “Chartered Accountant.” While it might seem like a minor distinction, it’s important to understand the advantages of choosing a qualified chartered accountant over a regular accountant.

There are numerous accountancy qualifications available for those entering the profession, but you might be surprised to learn that legally, anyone can call themselves an accountant, even without holding any qualifications or relevant experience.

In contrast, a chartered accountant, like those at CANGAF based in Bolton, is recognized as a specialist in accountancy and business advice. They have passed specific qualifications and are members of a professional body, providing you with assurance of their expertise and the ability to advise on more complex or specialized matters.

What is a Chartered Accountant?

A Chartered Accountant is someone who has passed a comprehensive range of exams covering subjects such as financial management, financial performance, business analysis, auditing, and taxation. Additionally, they must complete three years of practical experience in an authorized firm of accountants, earning them the specific accreditation of chartered status. They are highly qualified and experienced professionals.

Moreover, a chartered accountant is typically a member of a professional body, such as the Chartered Institute of Management Accountants (CIMA), the Association of Chartered Certified Accountants (ACCA), or the Institute of Chartered Accountants in England and Wales (ICAEW). This status is a benchmark of their skill, knowledge, experience, and commitment to the financial and business industry. You’ll find chartered accountants working for accounting firms, as independent sole traders, or in influential positions within large-scale businesses.

LEARN MORE: Best Chartered Tax Advisors in Manchester

What Does a Chartered Accountant Do?

The expertise of a chartered accountant enables them to handle a broad range of financial and business functions. They can manage standard accounting services such as tax returns, VAT, and payroll. Additionally, they offer expert advice and practice on more complex financial and business matters, including:

• Corporate finance – acquisitions, sales, mergers.
• Business financial management – cash flow forecasting, fund management, audits.
• Business strategy.
• Personal finance advice.
• Forensic accounting in areas like commercial fraud.

Their exceptional experience allows them to provide advice on matters a regular accountant may not have knowledge of. Often, a chartered accountant will specialize in specific fields like assurance, estate planning, commercial finance, or internal audits.

What is the Difference Between an Accountant and a Chartered Accountant?

Legally, anyone can become an accountant without needing specific qualifications or accreditation. However, all accountants must adhere to the Financial Reporting Council (FRC) Governance and Stewardship Codes, the independent regulatory body in the UK and Ireland for auditors, accountants, and actuaries.

Given this, it’s essential to trust where and from whom you get your advice. Always use a qualified accountant to ensure your affairs are handled correctly and lawfully. The risks of using an unqualified and unregulated accountant for your business or personal affairs include:

• Missed deadlines
• Mistakes and errors
• Unprofessional behavior
• Increased monitoring by HMRC

While a regular accountant does not require specific qualifications, a chartered accountant must pass a series of exams and gain at least three years of professional experience before becoming accredited. Additionally, they are required to undertake continuing professional development annually, including courses on tax and auditing. This ensures they stay up to date with current legislation and can provide you with the most relevant and current advice.

Choosing a chartered accountant gives you peace of mind that your advisor is knowledgeable and experienced in a wide range of financial matters, including financial management, auditing, business strategy, and taxation.

By working with a chartered accountant, you can be confident that you are in safe hands. Chartered accountants are bound by a strict code of professional ethics and standards, which influences all the firm’s policies and procedures, including quality control, a complaints procedure, and professional indemnity insurance. A chartered firm of accountants is subject to monitoring and reporting by their professional body to ensure these high standards are maintained.

How Do You Find a Good Chartered Accountant?

The best way to find a reputable chartered accountant is through professional bodies such as ICAEW, CIMA, or ACCA. On these websites, you can search for members based on their specialization and location.

CANGAF is a Chartered firm of accountants regulated by the Institute of Chartered Accountants in England and Wales (ICAEW). If you choose CANGAF as your accountant, you can be confident that you will receive the most appropriate advice and service for your needs.

If you would like to discuss how CANGAF can assist with your personal or business affairs, please contact us via +441204 859315.

Got questions? Request a no-obligation call with a tax advisor.