Managing our finances can be the most confusing and daunting task that any of us will ever have to endure. Nonetheless, legality it is imperative that we keep an accurate and correct filling of our financial records that adhere to national law. Because of this many individuals and businesses hire an accountant to effectively and efficiently manage their financial dealings.
An accountant understands financial law and will prepare and examine financial records on your behalf. They will make sure that your records are accurate and your taxes are paid properly and on time. They can offer clarity to individuals, providing answers and transparency to the most difficult monetary questions and help you create action plans for improved financial well-being. It is therefore important to understand the differences between the two types of accountants available and the purpose they serve.
In layman's terms an accountant is "a book keeper". An accountant is any individual whose primary responsibility is to provide an accurate and current record of an individual person's or businesses financial transactions. They must be aware of all compliance guidelines when compiling these records.
Generally speaking accountants can choose to work on behalf of large corporations or business or they can choose to work on behalf of private individuals. The most common field that an accountant works in is in the area of tax returns. They help their clients to correctly compile and file their tax returns each working year. Other fields accountants can work on include management funding, investment options, retirement packages and estate planning. Accountants must have a wide variety of skills and knowledge to perform such tasks effectively.
A chartered accountant
A chartered accountant is a person who is qualified and is authorized by law to practice accountancy. A Linghams Chartered Accountant Cardiff will have undergone highly specialized postgraduate training and are registered to practice with the Institute of Chartered Accountants (ICA) of their respective country. A chartered accountant will have completed a three year (minimum) postgraduate training scheme, making them highly qualified, knowledgeable and specialized in their practice.
A chartered accountant acts as a trustee between the industry (or individual) and the State. They are given the duty of verifying and confirming the truthfulness and fairness of books and tax returns they audit and file. While an accountant will specialize in "real time" affairs such as tax returns, a chartered accountant will focus on providing an in-depth and accurate record of all financial transactions.
Given that chartered accountants are registered by law, they are more answerable to the authorities than a normal accountant. As well as normal civil and criminal laws they are also covered by special laws in the case of any misconduct and are accountable for their actions. Because of this a chartered accountant's certifications and signature have much more credibility than that of a regular accountant.
Even though an accountant may have run their own practice for several years, a chartered accountant usually considered more employable. This is because a chartered accountant's expertise generally revolves around business dealings and hence they are seen to be more valuable and in-demand by large businesses and corporations. Opportunities to scale the workforce and salary ladder often reflect this high demand.
To summarize: An accountant is any person who records, checks and verifies the financial records of an individual or organization. A chartered accountant is a state-registered, qualified person who verifies the truthfulness and accuracy of an individual or organization. The signature of a chartered accountant holds high standards of legal, moral and professional accountability and credibility over that of an accountant.