Chartered accountant vs accountant: what’s the difference?

From complex terminology and acronyms to a range of different professional designations, the accounting world is full of jargon. The terms “accountant” and “chartered accountant” are often used interchangeably, and to the regular individual , they may appear synonymous — but they aren’t. 

In this article, we’ll look at the key differences between chartered accountants and accountants, exploring what it takes to gain the chartered status, and responsibilities / career paths it opens up. 

What is a chartered accountant?

A chartered accountant (CA) is a highly qualified accounting professional who has attained the professional designation of the same name. The Chartered Accountant designation is recognised internationally, although in the USA the equivalent is the Certified Public Accountant (CPA) designation. 

Being a CA differentiates accounting professionals from regular accountants, proving to potential clients and employers alike that they’ve undergone rigorous training and passed an examination accredited by a recognised professional accounting body.

What does a chartered accountant do?

Chartered accountants provide highly specialised services that can directly impact the financial health and performance of the businesses and individuals they serve. In addition to regular accounting services, chartered accountants can cover diverse and complex areas such as:

• Financial reporting and auditing
• Management accounting and consulting
• Compliance and regulatory guidance
• Tax advisory services
• Forensic accounting
• Corporate finance
• Risk management

Gaining the Chartered Accountant designation also opens doors to career progression, with CAs often climbing the corporate ranks to become financial controllers, accounting directors, and even chief financial officers (CFOs). 

How do I become a chartered accountant?

Becoming a chartered accountant is a serious professional undertaking, combining education, training, examinations, and ongoing professional development. In this section, we’ll outline the steps you need to take to become a CA and take your accounting career to the next level.

1. Attain educational requirements

There’s no strict, prescribed route into a career in accountancy. While some people choose to study for a degree in accounting or another finance-related field, others find accounting work experience as soon as they’ve completed their A-levels.  

Naturally, the more qualified you are in relevant subjects and the better your grades, the easier it will be to move forward with your career and get qualified as a chartered accountant. Also, the specific qualifications you’ll need may depend on the professional accounting body you choose — but more on that later.

2. Choose a professional accounting body

In the UK, there are six chartered accountancy bodies, all of which are overseen and regulated by the Financial Reporting Council. They are:

• Association of Chartered Certified Accountants (ACCA)
• Chartered Institute of Management Accountants (CIMA)
• Institute of Chartered Accountants in England and Wales (ICAEW)
• Chartered Institute of Public Finance and Accountancy (CIPFA)
• Institute of Chartered Accountants of Scotland (ICAS)
• Chartered Accountants Ireland (CAI)

Each chartered accounting body provides professionally recognised routes for achieving Chartered Accountant status, but they go about this in slightly different ways, with different criteria for work experience, exams, continuous professional development, and professional ethics. 

What’s more, some accounting certifications focus on specific areas of accounting over others — for example, CIMA specialises in management accounting, financial accounting, and reporting. If you are interested in becoming a chartered accountant in the UK, we recommend looking into each body and finding a qualification and professional pathway that best aligns with your goals.

3. Gain relevant work experience

All CA qualifications involve some sort of on-the-job learning, with trainee CAs often having to complete up to three years of work experience while simultaneously studying for and passing accredited exams. This allows you to put what you are learning into practice, ensuring that you gain the necessary skills, knowledge, and experience to be considered a chartered accountant.

To achieve this, you may need to complete your work experience with an authorised training employer, depending on the accounting body you choose. Be sure to check what the practical work experience requirement involves for each professional body before signing up. 

4. Pass professional examinations

Alongside practical work experience, you’ll need to pass several accredited exams to gain Chartered Accountant status in the UK. Again, the number of exams and their specific focus will differ depending on the professional body you choose. 

For example, the ICAEW’s Associate Chartered Accountant (ACA) qualification involves 15 exam modules across three levels, while the ACCA’s qualification involves 13 across three levels. You can expect exams to cover a broad range of accounting areas, such as:

• Financial accounting and reporting 
• Business planning 
• Corporate and business law
• Audit and assurance 
• Taxation and tax compliance 
• Financial management 

In addition to practical exams, CA qualifications also require you to pass modules on professional ethics. 

5. Apply for membership

Once you’ve completed all exams and met all other requirements relating to practical work experience and professional ethics, you will be eligible to apply for membership to the respective chartered accounting body and officially become a chartered accountant. 

The exact process and criteria for applying for membership will differ depending on the body you choose, so we recommend researching how this works in your case. 

6. Continuous professional development

Once you have become a chartered accountant, you must engage in continuous professional development (CPD) to maintain your designation. This typically involves amassing a minimum number of CPD units each calendar year, with a unit usually representing one hour of study. Examples of CPD include: 

• Work-based learning
• Attending accounting events and talks
• Attaining relevant academic or professional qualifications
• Internal and external training courses
• Attending accredited events and conferences
• Project work
• Secondments
• Mentoring / being mentored

Each body will approach the CPD requirement differently. For the ACCA qualification, for example, there is a minimum of 40 units. Twenty-one of these must be “verifiable”, which means the learning is relevant to your career, can be applied in the workplace, and for which you can provide evidence. The other 19 units can be “non-verifiable”, meaning they represent general learning not related to a specific outcome, or for which it is difficult to provide evidence.

Chartered accountant vs CPA — what’s the difference?

A chartered accountant and a certified public accountant (CPA) are similar in many ways. Both designations signify a degree of professional experience, a high level of expertise and competence, and a commitment to professional ethics and continuous improvement. 

The main difference between the two is the jurisdictions where they are recognised. The CA designation is recognised globally, whereas the CPA designation focuses on US-specific tax and accounting standards, limiting its geographic scope and relevance to the USA. The professional bodies differ as well, with CPAs overseen by the American Association of Certified Public Accountants.

Essentially, whether it’s best to become a CA or a CPA will depend on where you live or plan to pursue a career. For UK-based accountants, the CA designation is the way to go.

Chartered accountant vs accountant — what’s the difference?

As we’ve touched on already, the difference between an accountant and a chartered accountant boils down to qualifications, responsibilities, and professional standing. 

Chartered accountants have demonstrated the skills, practical experience, and commitment to professional ethics required to receive the prestigious CA designation. As such, they are qualified to work in more advanced, complex, and high-value accounting fields. They are also members of accredited accounting bodies, which hold them to high standards around continuous professional development. 

Regular accountants without the CA designation, on the other hand, don’t have the same professional standing. That isn’t to say they necessarily lack experience or skills — many regular accountants enjoy long, successful careers without ever needing additional qualifications. But without the CA designation, they aren’t held to the same rigorous standards by an officially recognised accounting body.

From the client side, whether you need an accountant or a CA will depend on the scope and complexity of the work. If you simply need someone to prepare and file your tax return, any accountant with experience in tax preparation will do. For more complex areas, such as forensic accounting or audit and assurance, you might want to look for a CA.

To sum up

For aspiring accountants in the UK, achieving Chartered Accountant status is a worthwhile aspiration. Although full of professional challenges, attaining the CA designation opens the door to interesting opportunities, career fulfilment, and the chance to continuously grow and build on your skills.

With the accounting industry changing rapidly, chartered accountants will need to ensure that they’re using the best technology to deliver consistently excellent services and results. With practice management software such as TaxDome, you can access all the tools, data, and processes you need to run a highly efficient and profitable practice — all on one intuitive platform. 

To see how TaxDome could help you take your accounting practice to the next level, request a demo today!