Difference Between a Chartered Accountant, Bookkeeper & Accountant
Posted: Feb 16, 2020
Usually, most of the people or clients do not fully understand the various roles or activities that a bookkeeper, an accountant and a chartered accountant undertake. Whilst some activities are undertaken by all three, it's important that you know about all the key differences between them before choosing your professional adviser.
Bookkeepers primarily record, process and report a business' day to day business transactions. Typically, anyone can become a bookkeeper.
Bookkeepers often label themselves as accountants. They are also known as accounting clerks or assistant accountants
However, this doesn't mean that they are Professional Chartered Accountants (or Chartered Certified Accountants or Certified Public Accountants in some countries).
They don't need to have passed any accounting qualifications and may "qualify" through experience.
Reasons to Choose a Chartered Accountant
In today’s world, the business environment is extremely competitive and is swarming with risk. The business world in New Zealand is no different. Taking services of a Financial Adviser in Wellington is often seen as a key component of a business' success in New Zealand.
It's not mandatory to engage an unqualified accountant but they may lack the knowledge and experience to offer the best advice for your business.
A competent Chartered Accountant will be an asset and will help you and your business flourish. They'll generally have more tax knowledge and understand the financial intricacies of running a business.
To maintain high professional standards and competence, they must continually meet high professional standards and are bound by a strict code of ethics.
This provides greater assurance that your business is in safe hands.
The following are some other reasons why you should hire a chartered accountant for doing your finances -
Professional bodies, such as the Association of Chartered Certified Accountants (ACCA) or the Chartered Accountants Australia and New Zealand (CAANZ), require its accountants to complete advanced education.
Chartered Accountants typically undertake a minimum of seven years training and education before being allowed to call themselves one.
They must also complete a minimum number of training and professional development hours each year to maintain their membership. They'll stay up to date with recent changes to tax legislation, the economy and general business environment.
Most of the accountants are not Chartered Accountants and hence, they do not need to comply with these standards.
Trusted business partner
Your Chartered Accountant should be a trusted and valuable business partner. They possess the skills and knowledge to provide insight and to evaluate both financial and non-financial data and unwanted trends.
They'll help you identify feasible financial and business strategies by recognizing the changes in demands in the business environment.
They will use this insight to recommend solutions tailored specifically for your business. They can help you meet the myriad challenges you and your business will undoubtedly face, by offering you practical & actionable accounting advice.
Thus, whenever you are in need of Accounting Services in Wellington or Porirua, you must always opt for a good Chartered Accountant Firm to help you out. The Professional Chartered Accountants at such a firm can easily help you out with any kind of accounting needs.