Difference Between Accountant and Chartered Accountant

Accountant vs. Chartered Accountant

Accounting is a field of communicating financial information of a business to users like managers and shareholders. The communication is usually in the form of financial statements that show the flow of money under the control of a manager.

An accountant is a person inclined in the field of accounting. The Big Four are the top employers of accountants in the world. These companies are the largest professional services and accounting firms that handle most audits of publicly traded and private companies. They create an oligopoly in auditing different large companies.

The primary responsibility of an accountant is to record and monitor the flow of money in an organization, business, or agency. The accountant needs to verify the accuracy of all transactions that involve money and ensure that all these transactions follow federal, state, and local guidelines.

An accountant may work directly for a business or company, or may work privately, and may be hired or contracted to complete tax returns or books of an agency. Some accountants may also work for private individuals to help them in their financial decisions, tax returns, investments, and other matters relating to money.

Once an individual has acquired proper training and met all requirements, they can become certified or chartered accountants, public or enrolled accountants, or any other designation. Some accountants specialize in personal or business finance, estate planning, tax preparation, certified or chartered accountants. They may use various computer applications to prepare different financial statements and forms, as well as to keep ledgers.

Accountants usually work long hours, especially when preparing tax-related documents. They are also required to take part in many examinations and audits of financial records. Meanwhile, corporate accountants may be required to conduct financial studies and analyze them. They may even conduct risk analysis for huge companies to make investment decisions in the future. Accountants who work in investment planning and real estate should be updated with the latest market trends, both for long- and short-term investment opportunities.

Some of the usual activities of accountants include:

1· Participating in planning and budget meeting with corporate individuals to provide recommendations and important information for financial and investment opportunities.

2· Ensuring the financial practices follow the guidelines or state and federal laws.

3· Balancing accounts and preparing financial documents on a regular basis or as requested.

4· Preparing and paying tax returns for huge corporations.

5· Entering data about payables, profits, sales taxes ,and other transactions in an orderly manner.

Meanwhile, a chartered accountant is a person who has successfully completed a postgraduate program while taking mentored work experience for three years. A chartered accountant has more opportunities than other accountant types.

Chartered accountants need to provide reliable information regarding financial records. Their tasks usually include corporate financing, auditing, taxation, and financial reporting. Generally, chartered accountants play a vital role in providing advice to achieve high profitability on behalf of their employer or client. They usually work in different settings like public, non-profit, commerce, and industry sectors.

In public-practice agencies, chartered accountants provide professional services to clients for a fee. Their clients usually come from public sector organizations, large commercial companies, or are private individuals. In non-profit, industry, commerce, and public sectors, chartered accountants may work in reporting, financial management, procurement, or treasury management roles.

Summary:

1. An accountant is a person that specializes in the field of accounting. Chartered accountants are accountants for hire.
2. Accountants need to ensure that all transactions follow the guidelines stated in the local and federal law. Chartered accountants need to provide reliable information about financial records.
3. A chartered accountant has more opportunities compared to other types of accountants.

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