You’re probably wondering what the difference is between a chartered accountant and a regular accountant. Well to put it simply, a chartered accountant has certain skills and knowledge that make them a greater asset to the success of a business. With the world economy being what it is lately, a business depends on reliable advice more than ever. Even the slightest hiccup can result in a business going under. However, a chartered accountant isn’t limited to simply keeping your business afloat; they’re also in charge of finding ways to help you increase your profit margin and grow your company.

A chartered accountant must go through a gruelling series of examinations and education to ensure that they will be able to meet the high standards that the business that hires them requires of them. To that end, they will put their knowledge of financing, business management, taxation, and risk management to use.

One thing that sets chartered accountants in a class of their own is that they are trained to restructure corporate procedures and improve upon the current mechanisms that are being used in the business. Their extensive financial training not only makes them great bookkeepers but it also gives them the ability to search for ways to enhance the financial process and tailor it to the needs of a company.

Chartered accountants use strategic knowledge to formulate business plans and to help companies get through even the most grueling auditing process with as few headaches as possible.

Another benefit they provide is in helping businesses perform complex tax planning and other strategies during the acquisition and merger processes. They can also provide valuable financial counsel that will make for an easier transition throughout the acquiring and merging of companies.

Keep in mind that while your business continues to grow, tax requirements and procedures will begin to change as well. In order to remain in compliance, a chartered accountant can come up with a financial tax plan that can reduce the amount of taxes your company will have to pay the government. Since tax laws are in a state of constant flux, you’ll definitely need to count on your chartered accountant to gradually improve your accounting management techniques and perform the adequate tax preparations to ensure that you stay within the state’s compliance regulations.

Ultimately, if you’re registering your business and are not sure whether you should register as a proprietorship, a partnership, or a corporation you can consult your Chartered Accountant. Someone who has the right training and experience can advise you, manage your business taxes, and protect your corporation from going under with the proper structure management. This will not only benefit you in the sense that you won’t have to pay a significant amount of excess taxes, but it will also ensure that your business thrives and remains competitive. This will give you and the corporate heads the freedom to manage the other important business decisions that need your attention.

Here are more reasons why you should be using a Chartered Accountant:

1) For advice you can rely on

Using a chartered accountant gives you the reassurance that the advice you are receiving is both accurate and informed. When it comes to your finances, you need to know your money is in safe hands – chartered accountants must comply with professional development standards, ensuring their knowledge and skills are always kept up-to-date.

2) They are regulated by professional bodies

Work with a chartered accountant and you’ll benefit from a professionally qualified individual that is bound by a code of ethics and professional standards. Not only will they have certain policies and procedures in place, including professional indemnity insurance, and complaints and disciplinary procedures, they will also undergo monitoring of compliance and quality reviews of their professional practice.

3) Backed up by experience

To qualify as chartered, your accountant will have had to carry out work for a breadth of different clients across a range of industries. Building acute business awareness and strong personal judgement, they’ll most probably have gained experience working with businesses that are high-performing to those under financial pressures. Choose a chartered accountant that specialises in your particular field or industry, and you’ll benefit from specific expertise that matches your scale and type of business.

4) Because integrity matters

Your accountant might be dealing with your personal and business finances, so you need to have confidence that they can be both trustworthy and discrete. Chartered accountants are bound by a code of ethics to uphold a set of professional principles, endeavouring to always put their clients’ interests above their own. Practising means demonstrating a commitment to maintaining and developing professional standards, so you know your financial interests are always put first.

5) More than just filing returns

Of course, you can use your accountant as much or as little as your own business demands – but if you need more than simply filing tax returns and keeping your records up-to-date, a trusted accountant can help you to grow your business and manage your risk.

WARNING: The consequences of using an unregulated accountant…

Unless chartered or qualified with another professional body, anyone can call themselves an accountant, even if they have no professional training or qualifications to back it up. So where does that leave you if your accountant makes repeated mistakes, has provided you with dodgy advice, or has even broken the law?

If you’re using an unregulated accountant you’re at greater risk of missed deadlines, indiscrete practice and mistakes on reporting – all of which can result in extra hassle for you and unnecessary mounting fines. Equally, it can lead to your company building a poor reputation, which can be just as damaging to your business in the long run.

But poor accountancy behaviour can also raise flags and unwanted attention from HMRC…and you might just find that you have become the victim of unlawful practice. False accounting fraud (when accounts are manipulated, destroyed or defaced to present accounts that don’t reflect their true value) is a criminal offence – and at worst, can result in imprisonment for those responsible. What’s more, not understanding accounting practices and standards isn’t an acceptable defence for fraudulent reporting, so you may be more accountable than you realise.