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What is Chartered Accountancy?

When you’re running your own business, there is going to come a time when you’ll need to use the services of an accountant. If you’ve already been looking for one, youwill have realisedthere are two types to choose from, including:

  • A regular accountant.
  • A chartered accountant.

They might sound very similar, but they are, in fact,very different. Anyone can call themselves an accountant whether they’ve got a license or have certainqualifications. A chartered accountant, on the other hand, has to be a member of the Institute of Chartered Accountants or the Association of Chartered Certified Accountants.

What Does a Chartered Accountant Do?

Chartered accountancy services cover a wide range of specialist financial tasks, including:

  • Auditing
  • Corporate finance
  • Forensic accounting
  • Taxation
  • Reporting
  • Business recovery
  • Insolvency

There are tasks which are typically required such as managing financial systems and budgets, talking with clients and offering advice and financial information. The role may also include the completion of financial auditsand the checking of a company’s financial position.

Chartered accountants can weara number ofdifferent hats, andthey can be employedin a range of situations. For example, chartered accountants Manchester can also help property investors or developers with the complicated business of tax. Theycan be responsible for overseeing the whole of a corporation’s accountancy needs or have a much narrower function. It is possible to find a chartered accountant working in large corporations and companies as well as for much smaller individual business concerns.

Qualifications

To be able to call yourself a chartered accountant, you’ll need to study for at least three years and pass several exams. Being a member of a professional body with a royal charter is also a requirement. You will be boundby a Code of Ethics and be able to have the letters ACA after your name.

If you are a chartered accountant, you are at the top of your profession. The qualifications requireddepend on the country in which you want to practise. In most cases, a bachelor’s degree that includes coursework in business and accounting subjects is necessary. Thiscan be followedby a practicum or internship of some kind. There is often an additional program available in chartered accounting principles.

Why a Business Needs a Chartered Accountant

If your financial situation is complicated or you have very little understanding of finances, a chartered accountant canprovide you with the best advice. By opting to employ their help, you also get more peace of mind becausea competent professional is handling your financial affairs.

If you choose to retain the services of a chartered accountant,you know that they are fit to perform the serviceyou’ve selectedthem for because they have a qualification to back them up. The requirements they will have met in order togain that qualification will go over and above the requirementsof a regular accountant.

Many financial and accounting matters are sensitive, andthere are ramifications if things are not doneright. A chartered accountant is best qualified to handle a person’s finances competently.

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