Difference between accountant and chartered accountant
Accountant vs chartered accountant:
The world of business requires many professionals, be it salesmen, stockbrokers, managers amongst which accountants hold a prominent position when it comes to preparing important financial documents of an organization. The accountancy profession is a lucrative one and yet, it requires an individual to possess certain professional qualifications in order to be accepted as a professional accountant. This is due to the fact that accountants hold highly responsible positions in financial institutes and these are the professionals who are responsible for providing the relevant documents regarding the cash flow of the company, upon which the future activities of a company may be structured. Accountants are of two sorts. They are accountants and chartered accountants.
Who is an accountant?
An accountant can be defined as someone who practices accountancy, which includes monitoring all monetary transactions that occur within a financial institution, at the same time keeping records of the money flow of the company and ensuring that these financial interactions occur according to rules and regulations that have been established by the government.
Accountants are also responsible for planning the budget of a company as well as offering financial advice on favorable investment opportunities for the company. They also prepare tax returns, financial documents, documents regarding bills, profits and all other financial interactions of the company as required and at the same time, they are responsible for keeping organized track records of all financial transactions of the company up to date.
Accountants can be of many sorts. But basically an accountant should possess qualifications such as Chartered Accountants (ACA), Chartered Certified Accountants (ACCA), Chartered Institute of Management Accountants (CIMA) or Associate of Accounting Technicians (AAT) which in turn proves that he or she has obtained a minimum standard required for accountancy. It also means that these individuals hold professional indemnity insurance and that their work is being monitored for its quality by a professional body which in turn ensures safe and reliable service on the part of the accountant.
Who is a chartered accountant?
While a chartered accountant is a type of accountant that falls under the category of accountants, a chartered accountant is usually considered as more qualified than a regular accountant. Also, it must be said that a chartered accountant has far more opportunities than other types of accountants in the field as they are also entitled to process government company accounts as well as private accounts.
A chartered accountant requires certain types of qualification which can be obtained through institutes such as ICAEW (Institute of Chartered Accountants in England and Wales) and ICAS (Institute of Chartered Accountants of Scotland). He or she also requires the successful completion of a postgraduate program and also a mentored work experience of not less than three years.
What is the difference between an accountant and a chartered accountant?
All accountants are required to participate in making important financial decisions for the companies. They are also held responsible for preparing and balancing of the financial accounts of various organizations. However, an accountant and a chartered accountant have many differences when it comes to various factors regarding their profession. While an accountant may usually work individually or for a company, a chartered accountant is generally exposed to more opportunities as they are generally more qualified than a regular accountant. A chartered accountant also undergoes more training than a regular accountant and therefore, a chartered accountant is held in a much superior position than a regular accountant when it comes to work experience and exposure as well.
Also, other than the usual functions of auditing, taxation and financial reporting, a chartered accountant is also required to provide financial advice on achieving high profitability goals in a company. An accountant is usually not entrusted with advise on such matters.
An accountant and a chartered accountant bear different stances with regards to their payment levels as well. Whereas a regular accountant may charge lower rates than a chartered accountant, the quality and the reliability of services may be compromised because of that. A chartered accountant on the other hand, charges more and yet, the quality of his or her work is deemed to be much higher than that of a regular accountant.
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