If you are on the lookout for an accountant, you need to make sure that you are getting the right one for your needs. There are many considerations that you need to think about here, not least the matter of knowing what type of accountant you actually need. In this article, we are going to make that a little easier for you by looking at the main differences between an accountant and a chartered accountant. That should help you to make the right decision in the future when you are seeking either of these for your needs and purposes.
Simply put, a chartered accountant is a professional accountant who has specifically trained in and received the Chartered Accountancy designation. This is an international designation, and is only given to those accountants who have successfully met the appropriate qualification, which can take many years to achieve.
Chartered accountants are generally experts in various aspects of the laws and regulations that govern businesses of all kinds. That includes tax laws and local and international laws and regulations. Having a chartered accountant can ensure a business remains legal at all times, and can be useful for
personal tax reasons too.
So we have seen what a chartered accountant is on the whole, but what does a chartered accountant actually do in their day to day job? There are four primary areas in which chartered accountants operate and in which they have expert knowledge: taxation, financial accounting and reporting, applied finance and management accounting. These are only headlines of course, and each of these can be subdivided in many more ways too.
A chartered accountant can help you with any of these and more, and they can do so for businesses or for individuals.
There are many ways to look at this, but one of the main things to bear in mind is that a chartered accountant has extra qualifications that a normal accountant does not necessarily have, as mentioned above. They will have the CA, FCA, or ACA title to their name, which bears a certain level of responsibility and gravity to their role compared to regular accountants.
A chartered accountant is specifically able and trained to provide those four major services mentioned above, while a normal accountant is not necessarily able to do so.
Of course, it is also helpful to know when you might actually specifically need to have a chartered accountant for your business or for your personal needs. Generally, the most common reason you would need a chartered accountant is when you are running a small or medium business, and you want someone who can manage all of the aspects of your accountancy in one fell swoop. Likewise, if you have a need for record keeping or bookkeeping in general, a chartered accountant will help - and with any taxation needs you might have.
As with any other kind of professional you might hire to help with your business or with your personal finances, the amount it costs you will always vary, and you will need to make sure that you are seeking out a specific chartered accountant’s price before you sign up for their services. However, you can get a general sense of this too, which can be helpful in making your decision. An average hourly rate for many CAs can around £35-£100+ an hour, but again that can of course vary a lot as well, so it is best to ask your CA.
There are a few questions that you are going to want to consider asking your CA, in order to ensure that you get the most out of their services and that you are making the right decisions of which to go for too.
These might include:
By asking these questions and others, you can get a sense of what you might need to know early on.
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