What is the difference between a chartered accountant and an accountant?

Chartered Accountants (CAs) and accountants are both financial professionals who provide services related to financial management, but there are some key differences between the two.

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An Accountant

An accountant is a professional who is responsible for recording, classifying, and summarising financial transactions. They may also prepare financial statements, perform audits, and provide tax advice to individuals and businesses.

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A Chartered Accountant

On the other hand, a Chartered Accountant is a professional accountant who has completed the required education and training, and has also passed a series of rigorous exams. They are members of a professional organisation, such as Chartered Accounts Australia & New Zealand (CA ANZ). Chartered Accountants may provide a wide range of services, including auditing, tax advice, financial planning, and management consulting.

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Key differences:

Education

The main difference between the two is the level of training and education. While anybody could be an accountant if they decided to be as there are no specific education requirements (although hopefully they have at least a degree in accountancy) but to be a Chartered accountant it is essentially like 'proof' that you've done extensive training. Not only is tertiary study required, but also professional exams and work experience post degree. This process takes a few more years to complete.

Chartered Accountants have a broader range of skills and expertise than regular accountants. They can provide a wider range of services, including tax planning, financial planning, auditing, and corporate finance. Usually, they can also offer more specialised advice on complex financial issues.

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Code of Conduct

The benefit of hiring a chartered accountant over an account is that because of their admittance to the organisation (CA ANZ), they have strict ethical and professional standards to uphold. This typically includes a code of conduct that emphasises integrity, objectivity and confidentiality.

Because of the strict code of conduct Chartered Accountants are bound to, you can have peace of mind knowing you can trust your finances are being handled by a trustworthy professional who is required to act in their client's best interests at all times.

Regulations and tax laws can change frequently, so Chartered Accountants are trained to stay up-to-date to ensure correct financial reporting and taxation is being met. This can be especially important for businesses that need to comply with complex accounting and tax laws.

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In conclusion, a chartered accountant is the better choice as they have much stricter requirements when it comes to education and ethics. They can provide a range of benefits for businesses and individuals who need expert financial advice and services.

Talk with us today to see how our Chartered Accountants can help you!