Difference between accountant and chartered accountant
Accountant vs chartered accountant:
What 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 established by the government.
Accountants are also responsible for planning the budget of a company as well as offering financial advise 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, keeping an organized track records of all financial transactions of the company up to date.
Accountants can be of many sorts. But basically an accountant should posses 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 the professional body to which they belong which in turn ensures a safe and a reliable service on their part.
What 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 do government company accounts as well as private ones.
A chartered accountant requires a certain type of qualification which can be obtained through institutes such as ICAEW and ICAS. 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?
While all accountants are required to participate in making important financial decisions for the companies and also in preparing and balancing of their financial accounts, an accountant and a chartered accountant have their differences. While an accountant may usually work individually or for a company, a chartered accountant can be exposed to more opportunities as they are usually more qualified than a regular accountants.
Also, other than the usual functions of auditing, taxation and financial reporting, a chartered accountant is also required to provide financial advice on achieving a high profitability in a company.
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 and yet, the quality and the reliability of services may be compromised because of that.