For those who aren’t aware – did you know that anyone can call themselves ‘accountants’? In the UK, the term accountant is not protected by law. That means anyone can refer to themselves as an accountant, regardless of their background, experience, training or professional qualifications.
So if you’re wondering ‘what qualifications do you actually need to be an accountant?’, the answer is technically… none. There’s no legal requirement for an accountant to be qualified or regulated, which can make it difficult for business owners to know who they can truly rely on.
This is why it’s vital that when choosing an accountant to partner with, you carry out an accountant qualification check. Ideally, you ought to be using a Chartered or Certified Accountant – these professionals are highly trained, regulated by a professional body, and carry professional indemnity insurance. You can usually identify them by the following letters after their name: ACA, FCA, ACCA or FCCA.
Accountant Vs. Chartered Accountant – What’s the Difference?
You might be thinking, ‘what’s the real difference between an accountant and a chartered accountant?’. It’s a fair question, and one that catches a lot of people out.
A chartered accountant has undergone years of rigorous training, exams and practical experience. They’re also required to meet continuing professional development (CPD) standards and follow strict ethical guidelines set out by their governing body – usually the ICAEW, ACCA, or CIMA.
By contract, someone calling themselves an “accountant” with no chartered status may have no formal training, no insurance, little experience and no one regulating the quality of their advice. They might be cheaper upfront, but it could end up costing your business much more in the long run.
Chartered accountants are invariably more expensive than an unqualified accountant, but they could save you £000s in tax, avoid penalties, reduce the risk of a HMRC investigation and protect your reputation. Many of the serious cases of tax errors or negligent advice we try to rectify stem from individuals or firms that aren’t under the umbrella of a professional body. These unregulated firms often have no professional indemnity insurance – which means if something goes wrong, there may be no route for recourse.
How to Carry Out an Accountant Qualification Check
Before committing to any accountant, ask them clearly about their qualifications and memberships. You can also perform a basic accountant qualification check by looking them up on their professional body’s website. For example, the ICAEW, ACCA, and CIMA all have online directories where you can search for registered members.
If they’re not listed, they’re not qualified through that body. It’s as simple as that.
Questions to Ask a Prospective Accountant
Here are come useful questions you should ask before choosing your accountant:
- Are you qualified?
- Do you have spare capacity to take on my business?
- Are you up to date with the latest regulations and software?
- Have you set up or supported any businesses like mine recently?
- How robust is your IT security?
Accountant Vs. Chartered Accountant – At a Glance
| Qualified (Chartered) Accountant | Unqualified Accountant |
| Regulated by ICAEW, ACCA or CIMA | Unregulated |
| Ongoing training & CPD required | No training requirements |
| Professional Indemnity insurance in place | No insurance required |
| Formal complaints process available | No official process |
| Accepted by lenders and HMRC | May be limited or unaccepted |
If it sounds too good to be true, it usually is. When it comes to financial advice and tax compliance, cutting corners can be risky. Always do your homework, and if you’re not sure where to start, begin with a proper accountant qualification check.
Still unsure? Get in touch – we’re happy to help you understand the difference and find a qualified professional who’s right for your business (like us!).
