Certified Accountant Vs. Chartered Accountant
-So, which Accounting Certification is for you?-UK Accounting Certifications vs US Accounting Certifications
-Accountant vs. Bookkeeper: What’s the Difference?
It is very common for people, even accountants, who haven’t been in the industry long enough, to ask what the difference is between a certified and a chartered accountant. In addition, the question that follows is that is it really useful to hire a certified or a chartered accountant for business, or is it just a waste of money? Well, the answer to the latter, in a nutshell, would be Scott Butterfield’s all fitting answer: it depends. I’ll discuss it in detail later in this article; but first, let’s get to the certified versus chartered.
Really, the difference between certified and chartered is what the dictionary says. However, the difference between certified and chartered accountants, is, well, irrelevant. If you didn’t already know, here’s another interesting one for you: there’s also a group out there called the Association of Chartered Certified Accountants (ACCA). So, one accountant here is both chartered and certified.
I often hear Chartered Accountants picking on all other certified accounts, including FCAs, ACCAs, IMAs and CMAs etc., but there’s really no reason to be doing that. East of the United States, with an exception to Australia, the equivalent of a Chartered Accountant is a Certified Public Accountant. Therefore, the term Certified Public Accountant in the US is equivalent to the term Chartered Accountant in the UK and other countries that follow the UK convention. So, what is a CPA or a CA? Well, basically, if you’re either of these, you can conduct audits, and primarily audits for public, .i.e., stock exchange listed, companies. In a nutshell, that is the difference. Passing the CPA or CA exam is no evidence of an accountant’s technical ability or understanding of management accounting, tax accounting, or financial accounting. For what it is worth, I have met non-certified, non chartered accountants with more accounting acumen than CPAs and CAs alike.
Other ‘Certified’ or ‘Chartered’ Accounting Designations, such as the CIMA, ACCA, IMA, CMA etc. are management accounting designations, i.e., they prepare you more for operational and managing the business kind of accounting rather than the audit kind, which naturally makes them more, shall I say, interesting, challenging, creative, and less dull (if there is any such thing in accounting). Note, once again, that ultimately, a certification is a piece of paper, and you can get horrible qualified accountants too.
In many ways, accounting is a field like law. Just because one holds a license or a certificate, doesn’t mean one makes for a good accountant. Some lawyers are just plain good, and if you’re familiar with the legal system, good trial lawyers don’t really require any knowledge of the law; good public speaking skills here are essential.
Similarly, good accounting, and hence good accountants, is/are not measured by certificates or qualifications. What’s important in the case of a good accountant is the ability to translate numbers, debits, credits into money making business, and vice versa. There aren’t a whole a lot of accountants who can successfully do this, because a thorough understanding of business is required to become a good accountant. I say this, quite simply, because as is the case with public accountants (CPAs and CAs), their primary job is compliance with the law regarding financial reporting, which basically means you have to be able to read and follow instructions. Anyone can do that. It is the application of basic accounting principles across complex business models that can drive growth that separates an ‘accountant’ from a, erm…someone who just has a certified piece of paper.
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July 30th, 2008 at 8:40 am
Asif:
Your are on the money with your comments about the qualifications of accountants. So many supposedly well-qualified accountants put little passion into their work. When you meet a great accountant, you know they are a great accountant after spending just a few minutes with them.
Tyson
July 30th, 2008 at 9:56 am
It’s a shame that simply having a qualification, which you can now buy in many countries, is supposed to mean you’re a good accountant. Tells us something about the professional academic system.
August 4th, 2008 at 5:27 am
Hi Asif,
I come across many people who don’t understand that accounting is similar to being a doctor - we specialise in onw area, and may appreciate but not understand that other area. You would not want a brain surgeon doing a heart transplant would you?
I agree I find a lot of accountants have lost the passion
I am an ACCA (Bl**dy hard qualification to get!!)
Heather
August 4th, 2008 at 7:03 am
Hey Heather,
You’d be surprised how many people are happy with consulting ANY doctor for a specific problem, because they seem to think that the basics of medical school apply across the board.
Lack of knowledge, publicity by public accounting boards and institutions, and the consumers’ unwillingness to understand are probably the major causes of this confusion.
Accountants have lost the passion: agreed. However, you can hardly blame them. The SEC took creativity out of accounting.
November 10th, 2008 at 3:11 am
The Certified General Accountant (CGA) designation is a valued and respected designation in Canada, Bahamas, Barbados, Bermuda, Hong Kong and China. The CGA has four streams of career choices and provides additional courses for those careers.
1. Corporate & Small-Medium Enterprise
2. Information Technology
3. Government and Not-for-Profit
4. Public Practice
Each career path has 2 additional 10 week courses, 18 in all, of approximately 20 hours each week of study. A university degree is also required.
I am suprised it was not mentioned as an option.
February 25th, 2009 at 7:13 am
One dumb question….
So can ACCA Qualified people call themselves CA’s? (As in Chartered Accountant)My view is no.. but they can call CA as int the sense Certified Accountants..
Asif, Please enlighten me.
February 25th, 2009 at 7:16 am
I knew that they can be called C.C.A..
February 28th, 2009 at 1:34 pm
Hi S/J.A.
Let’s start with your first post here.
I’m saying ACCA is considered a mid tier qualification because it is a financial accounting and reporting qualification. The problem with being an ACCA is that you’re ultimately competing with a much larger pool of accountants, including the CAs, and let’s be honest, the general idea is that CAs are the ultimate financial accountants (although those of us who are accountants know that’s trash talk by uneducated people). It’s this general persona in the business world which, unfortunately, gives ACCAs a sub-standard persona, although let me be clear that I think this opinion is wrongly formed. CIMA, on the other hand, competes with nothing. It’s the self proclaimed management accounting qualification that gives you average US university level education in branded format. That’s all.
Let’s be honest: the world is about marketing. CIMA does a far better job, and CIMA’s don’t compete with CAs, which gives them the edge. If you ask me, the fact that these certifications exist and are respected is very reflective of the crap quality of education in Britain. An ACCA examiner and a CIMA instructor stood up in class and told me with great pride that what he is about to teach me is something no graduate would have see before. Well, what can I say. Not only was he wrong, what he taught was also incorrect. The fact that US education covers in basic accounting degrees what UK accounting qualifications are covering at the professional level simply reflects on the generally low level of competency of the British educational system.
For me, Britain has been a source of politically motivated educational frustration brought on by old, faggot-like businessmen who know nothing of how the world outside the UK is evolving. That’s why university education is trash, professional education is necessary and the recession is in full boom.
The bad news is that ACCA and CIMA don’t necessarily have reciprocal agreements. With a full ACCA qualification, CIMA will only give you exemption from the certificate level. My advice to all smart accountants, leave the UK or if you want to live here, go into another profession. Accounting is highly bureaucratic in the UK and this country is a good 20 years behind the rest of the developed world and always will be, because the oldies stay at the top, and they’ve become so dumb they forget to use the younger talent which has evolved in technical understanding, knowledge and technology. I’ve seen the problem with so many clients here I can almost write a book on it.
I believe ACCAs cannot call themselves Chartered Accountants or CAs. That’s part of the reason they’re disadvantaged.
March 16th, 2009 at 8:00 pm
Hi!
Thank you for all of the information you have posted to date. As an undergraduate student hoping to enter into the financial sector it was a very interesting read.
With regard to the level of teaching experienced for the professional qualifications, what is important to remember is that an undergraduate degree in accounting is not required to commence study of the post graduate, professional qualifications. Rather, a ‘good analytical degree’ is often specified.
Therefore, I am not surprised certain elements appeared extremely basic to you if you have previously studied accounting.
What I do not understand however is why the teacher was boosting his already over inflated ego!
My personal experience of the education system within the UK is that it is archaic and the level varies dramatically. I also feel that the benchmark for attainment between universities varies quite considerably. Therefore employers requesting ‘a minimum 2:1′ will receive a very mixed bunch.
Also, I have found the attendence of lectures by undergraduates to be very very low. I am sure a lot of important knowledge is missed by the students and again, this must impact the level at which post graduate teachers can begin.
Education within the United Kingdom is I believe too varied to make such a blanket statement. I am sure for every example of a poor educational body, there is also an example of an exemplary one.
However, as someone who has not yet studied abroad, I am not in a position to compare. I do feel though that within the UK it is becoming quite clear that a higher level of acadmic acheivement is being expected by employers. Especially now during the current economic climate they can afford to expect higher grade candidates.
March 16th, 2009 at 8:03 pm
Hopefully this will be something that will remain after the current crisis and see more pressure upon British universities to improve their teaching.
Kind regards,
Stuart.
Apologies for the numerous posts, accidetly hitting tab before return!
November 25th, 2009 at 4:15 pm
I must express my sincere gratitude about the information provided by the web.They are up to date and current.I must as an Undergraduate student of Accounting say i wish to be a member of such and Organisation.I really enjoy the manner in which questions are answered.
December 9th, 2009 at 7:55 pm
There is no big diffrence between a Chartered Cerfitied Accountant and a Certified Pubic Accountant.The slide difference comes just from their appelation.But both the Chartered Certified Accountant and the Certified Public Accountant performs same functions.The certified Public Accountant is the American appelation and the Chartered Certified Accountant is the British appelation.To become a CPA you must pass an examination set by the AICPA whereas to become a Chartered Certified Accountant(Britain)you must join ACCA.For more on this contact:lascobenz@yahoo.com
December 12th, 2009 at 4:37 pm
There is no big difference between a Certified Public Accountant and a Chartered Certified Accountant(ACCA).The difference comes only in the appelation between both countries but both perform the same function.Both are recognised publicly and can perform an Audit Assignment.To become a Chartered Certified Accountant you are required to have completed ACCA as the case in Britain.On the otherhand to become a Certified Public Accountant you need to pass a public examination by AICPA.
December 12th, 2009 at 4:42 pm
Recently i met someone who was asking which Accounting programme is preferable to betaken.He asked me wether in my own opinion he should do ACCA or take the examination for CPA.I wish clarity be given to such questions as both programme is advantageous.
January 5th, 2010 at 8:18 pm
In reply to stuart comments on UK educational system.
I am fully qualified CIMA (ACMA- awaiting approval on FCMA) and Qualified MCT (Corporate Finance, Risk and Treasury)from UK. I have my own medium size business with a turnover of GBP345M and net profit of £180M. I would like to point to him that his lack of knowledge in the area of finance, is crystal clear. US accountancy degrees are focused primarly on US GAAP system and are surpassed by the professional education system offered by UK in relation to CPA or CMA. Both canada and US work on local level platforms, while ACA, CIMA work on international level platform by focusing on IFRS and US GAAP, UK GAAP.
US first degrees have found to lack international focus and attract substantial candidates to further pursue MBA/ CFA programmes to deliver and develope international persepectives and awareness.
His opinion sounds as he is bias towards US educational system, and also seems that he has failed in achieving the level of qualification from UK.
(those who cant do themselves, discourage others).
February 12th, 2010 at 8:19 pm
In my view He is too bias I think CIMA is more compatible in this modern World those who cant do dont discourage others
February 17th, 2010 at 7:17 pm
Saad, you are entitled to your view. Read Atlas Shrugged and Fountainhead before you make red herring remarks, or I shall be forced to destroy your ignorant paki ass.
March 1st, 2010 at 7:41 am
Would like to know the difference between Chartered and Certified in Australia. As I trying to find information on line and am finding it hard.
March 7th, 2010 at 11:19 pm
Sorry lauren, not that good with Aussie accounting, but I trust it’s the same as in the UK. Absolutely NONE. Do the one that market themselves better as that will get you a better career; education wise there isn’t much to learn in accounting anyway!