Information about Accountants

Accountant, or Qualified Accountant, or Professional Accountant, is a certified accountancy and financial expert in the jurisdiction of many countries. Such as other legally-restricted professions including medical doctors and lawyers, different countries have their own training and examination systems to maintain the practice quality and restrict the number of qualified accountants in their jurisdictions.

Accountants originally worked only in public practice, selling advice and services to other individuals and businesses, but today, in addition, many work within private corporations, the financial industry and various government bodies.

Accountancy is the measurement, disclosure or provision of assurance about financial information that helps managers, investors, tax authorities and other decision makers make resource allocation decisions.

Practitioners of accountancy are known as accountants. There are many professional bodies for accountants throughout the world, some of them are legally recognized in their jurisdictions. Such as British qualified accountants including Chartered Certified Accountant (ACCA or FCCA), Chartered Accountant (CA, ACA or FCA), International Accountant (FAIA or AAIA), Chartered Management Accountant (ACMA or FCMA), Canadian qualified accountants such as Chartered Accountants, Certified Management Accountants, Certified General Accountants and Registered Public Accountants (CA, CMA, CGA or RPA)as well as American qualified accountants such as Certified Public Accountant (CPA).

The Certified Management Accountant (CMA) designation is unusual in the United States in that it does not have a statutory basis. However it is accepted by industry and by its peer associations. In Canada the Canadian CMA designation is recognised under provincial/territorial legislation.

Responsibilities

Environmental accounting

Addressing how companies can be both environmentally responsible and profitable. This includes focusing the variety of projects like environmental compliance audits and managing and preventing claims and disputes.

Insolvency

If the clients are facing the possibility of personal bankruptcy or corporate insolvency, an accountant with his/her own country's insolvency licence can provide the clients with invaluable advice. If professional advice is sought as soon as the signs of trouble appear, then insolvency/bankruptcy may be avoided. If the clients are a trade creditor and are concerned about a debtor or have been told that a debtor is insolvent, a licensed insolvency practitioner can investigate and advise on the best course of action. To become an accountant with his/her own country's insolvency licence, stringent criteria must be met and an ongoing experience requirement must be achieved if the licence is to be renewed each year.

Accounting and bookkeeping

Advice can be provided on setting up business systems, from basic bookkeeping (cashbook) to comprehensive management reporting. Some accounting firms will undertake the bookkeeping function, which may also include VAT return preparation. Practitioners can also assist in the preparation of year-end accounts.

Management accounting

Accountants may set up systems to ensure that the clients know how their businesses are performing. Additional services offered include budgeting and performance monitoring and helping to ensure that a business runs in a smooth and efficient manner.

International services

Provide services to support and facilitate commerce in the global market. Moreover, companies adopting International Financial Reporting Standards (IFRS) may need accountants to help reconcile IFRS with their local GAAP. Professionals with knowledge of U.S. GAAP who work well in an international environment are increasingly in demand.

Accountants may offer advice on how to finance a business and how to buy or sell a business, as well as other related considerations. Such as providing a variety of services to organizations and individuals that interpret and add value by utilizing a wide range of financial information. These include everything from tax planning and financial statement analysis to structuring investment portfolios and complex financial transactions, and evaluating financial information to assess liquidity, solvency and stability issues of a firm and provide meaningful information which serve as the basis for management to make informed decisions.

Investment advice

Advice may be sought on pensions, unit trusts, life insurance etc., from advisers authorised to give investment business advice.

Tax advice - statutory requirements and planning opportunities

Accountants are able to offer advice on tax including corporation tax, income tax, capital gains tax, PAYE and VAT. In addition, business advisers can also offer tax planning advice and minimise your tax liability now and in the future.

Management consulting

Accountants can provide independent advice to managers of businesses, such as provide advice and insight on the financial and non-financial performance of an organization's operational and strategic processes through broad business knowledge and judgment. Such help can be used in a variety of ways, including:
  • providing an external independent view
  • overseeing the stewardship of the chairman/chief executive and board members
  • encouraging and developing new ideas
  • assisting the company in difficult situations
  • bringing specialist knowledge
  • maintaining an ethical climate.

Advice on starting up a business

Accountants may offer advice on the legal form most appropriate to starting up a business. In addition they may advise on related legal and taxation issues, business plans for presentation to banks, and what you should expect when starting up a business.

Accountancy qualifications and regulation

The requirements for entry in the profession of accounting vary from country to country.

Accountants may be licensed by a variety of organisations, such as the Association of Chartered Certified Accountants (ACCA) and Institute of Chartered Accountants, and are recognized by titles such as Chartered Certified Accountant, Chartered Accountant, Certified Public Accountant, Certified Management Accountant, Certified General Accountant and Certified Practicing Accountant. Many countries recognize two or more accounting bodies. There is, however, no legal requirement for an accountant to be a paid-up member of one of the many Institutes and other bodies which are effectively a form of professional trade union. Unlike the Law Society, which can legally stop a solicitor from practicing, accountancy institutes do not have such authority. Generally, certain specialized areas of accountancy such as auditing and insolvency are tightly regulated.

Commonwealth of Nations

In the United Kingdom, Canada, Australia and several other Commonwealth of Nations countries, the equivalents of Certified Public Accountant (CPA) include Chartered Certified Accountant (ACCA), Chartered Accountant (CA or ACA), Chartered Management Accountant, International Accountant, Certified Public Accountant (CPA - Ireland and CPA - Hong Kong), Certified General Accountant (CGA - Canada), and Certified Practicing Accountant (CPA - Australia).

United Kingdom

In the UK, there are no license requirements for an individual to be describe himself/herself or practice as an accountant (except in the areas of audit or insolvency) but to use certain titles requires membership of one of the many appropriate professional bodies. Each of these bodies admits members only after passing examinations and undergoing a period of relevant work experience. Once admitted members are expected to comply with ethical guidelines and gain appropriate professional experience.

Chartered Certified, Chartered and International Accountants engaging in practice (i.e. selling services to the public rather than acting as an employee) must gain a "practicing certificate" by meeting further requirements such as purchasing adequate insurance and undergoing inspections.

Accountants holding "practicing certificates" may also become Registered Auditors in accordance with the Companies Act, providing they can demonstrate the necessary professional ability in that area and submit to regular inspection. It is illegal for any individual or firm that is not a Registered Auditor to perform a company audit.

Further restrictions apply to accountants who carry out insolvency work.

In addition to the bodies above, the Association of Accounting Technicians offers its members training and support in accountancy skills.

For more details regarding British qualified accountancy professionals, please refer to the page of British qualified accountants.

Canada

In Canada, there are three recognized accounting bodies: the Canadian Institute of Chartered Accountants (CA) and the provincial and territorial CA Institutes, the Certified General Accountants Association of Canada (CGA), and the Society of Management Accountants of Canada, also known as the Certified Management Accountants (CMA). CA and CGA were created by Acts of Parliament in 1902 and 1913 respectively and CMA was established in 1920.

The CA program focuses on public accounting and candidates must obtain auditing experience from public accounting firms; the CGA program takes a general approach allowing candidates to focus in their own financial career choices; the CMA program focuses in management accounting. The CA and CMA programs require a candidate to obtain a degree as a program entry requirement. The CGA program requires a degree as an exit requirement prior to certification.

Auditing and Public Accounting are regulated by the provinces. Historically, only CAs can perform audits in Ontario. In 2004, the provincial government of Ontario passed a new Public Accounting Act that would allow qualified CGAs and CMAs to perform audits, conditional on their organizations being able to demonstrate that their qualification and regulatory programs are equivalent in rigour to that of the CA program. As of March 2006, this process of evaluation had not yet begun. In Quebec as well, CAs still have exclusive public company audit rights by statute. In British Columbia and Prince Edward Island, CAs and CGAs have equal status regarding public accounting and auditing; In the rest of Canada, CAs, CGAs, and CMAs are considered equivalents pursuant to provincial and territorial legislation.

As of year 2006, the Chartered Certified Accountant (ACCA or FCCA) is also recognized by Canadian government as an eligible qualification to audit federal government institutions in Canada. Furthermore, The Canadian branch of ACCA is pursuing recognition for statutory audit purposes in the province of Ontario under the province's Public Accounting Act of 2004

Australia

In Australia there are four main local professional accountancy bodies.
  • Certified Practicing Accountants (CPA) are members of CPA Australia.
  • Professional National Accountants (PNA) and Member of National Institute of Accountants (MNIA) are members of National Institute of Accountants Australia.
  • Chartered Accountants are members of the Institute of Chartered Accountants in Australia.
However, the Chartered Certified Accountant (ACCA or FCCA) qualification is also recognized as a prescribed body for insolvency purposes under the Corporation Act 2001, section 1282 and for audit purposes by ASIC under Practice Statement 180 Auditor recognition in Australia.

Additionally the Institute of Certified Management Accountants (ICMA) awards the CMA designation, and is specialized in the area of Management Accounting.

New Zealand

In New Zealand, there is only one local accountancy body, the New Zealand Institute of Chartered Accountants (NZICA).

To audit public companies an individual must be a member of either the NZICA or an otherwise gazetted body. Chartered Certified Accountant (Association of Chartered Certified Accountants or FCCA) qualification has also been gazetted under the relevant act (Under Section 199 of the Companies Act 1993: Qualifications of Auditors). An ACCA member can practice as long as they hold an ACCA public practice certificate (with audit qualification) in their country of origin.

Ireland

Ireland tends to take its lead from the United Kingdom. In a positive move, the Irish Auditing and Accounting Supervisory Authority has recommended to the Minister for Trade & Commerce, Michael Ahern, that the term "accountant" be statutorily protected, only allowing members of recognized bodies to use the term. RTE news article on proposed statutory recognition of term "accountant"

United States of America

In the United States, legally practicing accountants are Certified Public Accountants (CPAs), and other non-statutory accountants are Certified Internal Auditors (CIAs), Certified Management Accountants (CMAs) and Accredited Business Accountants (ABAs). The difference between these certifications is primarily the legal status and the types of services provided, although individuals may earn more than one certification. Additionally, much accounting work is performed by uncertified individuals, who may be working under the supervision of a certified accountant.

A CPA is licensed by the state of his/her residence to provide auditing services to the public, although most CPA firms also offer accounting, tax, litigation support, and other financial advisory services. The requirements for receiving the CPA license varies from state to state, although the passage of the Uniform Certified Public Accountant examination is required by all states. [1] This examination is designed and graded by the American Institute of Certified Public Accountants.

A CIA is granted a certificate from the Institute of Internal Auditors (IIA), provided that the candidate passed a rigorous examination of four parts. A CIA mostly provides his/her services directly to his/her employer rather than the public.

A CMA is granted a certificate from the Institute of Management Accountants (IMA), provided that the candidate passed a rigorous examination of four parts and meet the practical experience requirement from the IMA. A CMA mostly provides his/her services directly to his/her employers rather than the public. A CMA can also provide his services to the public, but to an extent much lesser than that of a CPA.

An ABA is granted accreditation from the Accreditation Council for Accountancy and Taxation (ACAT), provided that the candidate passed the eight-hour Comprehensive Examination for Accreditation in Accounting which tests proficiency in financial accounting, reporting, statement preparation, taxation, business consulting services, business law, and ethics. An ABA specializes in the needs of small-to-mid-size businesses and in financial services to individuals and families. In states where use of the word "accountant” is not permitted by non state licensed individuals, the practitioner may use Accredited Business adviser.

The United States Department of Labor's Bureau of Labor Statistics estimates that there are about one million persons [2] employed as accountants and auditors in the U.S.

U.S. tax law grants accountants a limited form of accountant-client privilege.

Hong Kong SAR

In Hong Kong, the accountancy industry is regulated by the HKICPA under the Professional Accountants Ordinance (Chapter 50, Laws of Hong Kong). The auditing industry for limited companies is regulated under the Companies Ordinance (Chapter 32, Laws of Hong Kong), and other Ordinances such as the Securities and Futures Ordinance, the Listing Rules, etc.

For further details see Accountancy in Hong Kong.

Austria

In Austria the Professional Accountants business is regulated by the Bilanzbuchhaltungsgesetz 2006 (BibuG - Management Accountancy Law). Offering accounting services needs a license provided by the Paritaetische Kommission Bilanzbuchhaltungsberufe.

See also

External links

Accountancy (profession) or accounting (methodology) is the measurement, statement or provision of assurance about financial information primarily used by managers, investors, tax authorities and other decision makers to make resource allocation decisions within companies,
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FINANCIAL is the weekly English-language newspaper with offices in Tbilisi, Georgia and Kiev, Ukraine. Published by Intelligence Group LLC, FINANCIAL is focused on opinion leaders and top business decision-makers; It's about world’s largest companies, investing, careers, and
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physician applies to a person who practices some type of medicine. Such medical practitioners are concerned with maintaining or restoring human health through the study, diagnosis and treatment of disease and injury, through both an area of knowledge
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A lawyer, according to Black's Law Dictionary, is "a person learned in the law; as an attorney, counsel or solicitor; a person licensed to practice law.
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British qualified accountants are full members of those United Kingdom accountancy bodies which are themselves members of the Consultative Committee of Accountancy Bodies. The UK market often refers to CCAB qualified
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Chartered Certified Accountant

British qualified accountants
Founded [England, UK] (1904)
Headquarters London, [England, UK]

Industry Accountancy and Finance
Subsidiaries The Association of Authorised Public Accountants (AAPA)
Website www.accaglobal.
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Chartered Accountant (CA) is the title used by members of certain professional accountancy associations in the British Commonwealth countries and Ireland. The term chartered
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Vat and VAT may refer to:
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The Association of Chartered Certified Accountants (ACCA)

British chartered accountancy body
Founded [England, UK] (1904)
Headquarters London, [England, UK]

Industry Accountancy and Finance
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The Institute of Chartered Accountants in England & Wales (ICAEW) was established by a Royal Charter in 1880[1]. It has over 128,000 members. Over 15,000 of these members live and work outside the UK. The Institute also has some 9,000 students.
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Certified General Accountant (CGA) is a professional designation representing members of the Certified General Accountants Association of Canada (CGA-Canada), provincial and territorial CGA Associations as well as CGA Associations overseas.
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CPA Australia is one of three professional accounting bodies in Australia, the others being the National Institute of Accountants and the Institute of Chartered Accountants of Australia.
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A Law Society in current and former Commonwealth jurisdictions is an association of lawyers which has a regulatory role which includes the right to supervise the training and qualifications of lawyers.
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The Association of Chartered Certified Accountants (ACCA)

British chartered accountancy body
Founded [England, UK] (1904)
Headquarters London, [England, UK]

Industry Accountancy and Finance
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The Association of Chartered Certified Accountants (ACCA)

British chartered accountancy body
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