If you’re interested in becoming an accountant or even if you’re in the market for accounting services, you may have wondered about the term “chartered accountant.” Also referred to as CA, this type of professional is one that offers a number of significant benefits, but whose position is less in the spotlight than other forms of accounting professionals.
Accounting majors who are interested in working abroad might ask, “What is a chartered accountant?” Chartered accountants are experts in the laws and regulations governing businesses in various countries around the world. As international corporations become increasingly influential, they will need highly trained accountants to keep track of their expenses and revenue. Tax laws and business regulations can differ greatly between countries, and CAs are certified to help businesses remain profitable and in compliance with local laws and regulations.
Chartered Accountant
Chartered accountant designation is worldwide, and it refers to professional accountants who are qualified to take on a number of specific activities within the spectrum of accountancy. Such tasks include auditing financial statements, filing of corporate tax returns, and financial advising. While the name is seen around the globe, in the United States, the equivalent position is known as a certified public accountant, or CPA. The professional body that governs this group of accounting workers goes back to 1854 where it was founded in Britain. There are now several associations that act as governing and accrediting bodies for these professionals, such as the Canadian Institute of Chartered Accountants and the Institute of Chartered Accountants in England and Wales.
What Chartered Accountants Do
There are four areas in which these accountancy professionals serve. They are taxation, financial accounting and reporting, applied finance, and management accounting. The specialization an accountant chooses determines under which umbrella he or she works. Chartered accountants can wear a number of hats. It’s possible that they may oversee a corporation or business’s entire accountancy needs. They may have a more narrow function such as being in charge of just one aspect of a business like auditing or taxes. Many of these highly skilled workers will go out on their own as freelancers or consultants for hire.
How to Become a Chartered Accountant
How to become a chartered accountant depends upon the country where you want to work, as each has its own requirements for certification. Regardless of specifics, chartered accountants do meet more stringent academic and practical requirements than other levels of accountants. In most cases, there is a standard bachelor’s level degree consisting of coursework in business and accounting subjects, followed by a practicum or internship or some kind and then a specific program in chartered accounting principals. A person must be quite dedicated in order to achieve the rank of CA, but the position is a well-respected one that usually carries a higher salary than other types of accountant.
Since CAs tend to work overseas, it’s important for them to have professional connections in foreign countries. Some CAs work in American accounting firms preparing tax documents and filing tax returns for corporations that conduct international business. Job opportunities for American chartered accountants are limited, so most certified accountants in the US work as certified public accountants. These titles are roughly equivalent. In foreign countries such as India and New Zealand, CAs play the role of CPAs.
Becoming a CA in a foreign country is similar to becoming a CPA in the US. For a licensed CPA to become a CA, no further education is necessary. In this case, all that is required is a license to practice accounting in a foreign country. In contrast, an accountant without any postgraduate training will have to complete a CA program before becoming licensed.
Steps to Get Certified as a Chartered Accountant
Established in May 1880, the Institute of Chartered Accountants in England and Wales (ICAEW) has certified more than 181,000 members across more than 140 nations. This organization provides the Associate Chartered Accountant (ACA) certification after several steps. First, individuals must complete at least three years of on-the-job training in accountancy. The 450 or more days of hands-on work experience must be finished with over 5,000 ICAEW-authorized employers. Some popular training providers include Grant Thornton, KPMG, Bishop Fleming, Nagle James, Myers Clark, Ernst & Young, and Goodman Jones. Meanwhile, accountants must pass 15 digital exam modules focused on financial reporting. Certain students can waive modules with credits for prior learning (CPL). For instance, the University of Florida’s International Executive Master of Accounting provides eligible credits.
In the first 12 months, accountants work on achieving the Certificate in Finance, Accounting, and Business (CFAB). This credential requires six fundamental modules: Accounting, Management Information, Principles of Taxation, Law, Assurance, and Business Technology & Finance. These entry-level modules are available online or in classrooms with a £165 registration fee. Aspiring chartered accountants must then pass a 1.5-hour, computer-based exam at a proctoring center. If passed, accountants build atop that certificate to earn the Business and Finance Professional (BFP) credential. This mid-level, professional stage in the second year covers six more modules: Business Planning, Financial Management, Tax Compliance, Auditing, Financial Accounting, and Business Strategy. Here individuals must pass a 2.5-hour, in-person paper exam to qualify. Getting ACA certification ends with three senior-level modules, including a case study project.
Gaining an undergraduate degree, experience, and passing tests at ICAEW-approved centers isn’t all though. Associate Chartered Accountants must properly maintain their knowledge. Certified members must stay up-to-date with Continuing Professional Development (CPD) credits. Every three years, chartered accountants must engage in 90 or more CPD hours. At least 15 CPD credits are mandated annually. Chartered accountants keep their skills fresh with formal and informal training sessions. The ICAEW hosts workshops, conferences, and seminars for CPD hours. Members receive a 75 percent discount off the Essentials CPD webinar online. The Institute of Chartered Accountants in England and Wales library has free e-books or journals to read. CPD courses are available in nine niches, including data analytics, banking, corporate treasury, and valuation. Continuing education keeps ACAs knowledgeable about new regulations.
Skills Every Chartered Accountant Must Possess
Thinking of becoming a chartered accountant? Building a successful global accountancy career requires several unique skills. Chartered accountants must have methodical problem-solving skills to fix financial reporting errors. Mathematical skills are important to properly analyze numbers and conduct basic calculations. Communication skills are needed to work well on global accounting teams. Many chartered accountants know multiple foreign languages to speak with diverse business leaders. Cultural competency is essential to respect people’s differences abroad. Organizational skills help chartered accountants keep pristine financial records. Time management skills are handy to meet required deadlines, such as tax filing dates. Technological skills are critical to use today’s cutting-edge accounting information systems. Chartered accountants must also have the business acumen to make smart money decisions.
Chartered accountants must be highly analytical and detail-oriented. They have a responsibility to ensure that their clients’ finances are balanced and follow all local laws and regulations. That’s why CA programs are country-specific. CAs need to thoroughly understand the tax laws and business regulations of the countries where their clients operate.
Depending on the circumstance, a CA may have to learn specialized information about a nation’s accounting laws and customs before starting a job. These requirements will be more common for CAs working in large, diverse countries such as Brazil and India where businesses sometimes operate under heavy government regulation. With enough self-discipline, perseverance and targeted research, anyone can work toward becoming a successful CA.