Anyone can call themselves an accountant!
Now unlike the term ‘Solicitor’ or ‘Architect’, the word ‘Accountant’ is not legally protected in the UK (despite extensive lobbying by the UK Accountancy Bodies). Unlike someone who fights a case for you or designs a house, anyone can call themselves an accountant and do your accounts, VAT and tax. You too can get up one morning and call yourself an accountant and start a business over the internet! Indeed there are many organisations that have. This is a situation that is not repeated in most other countries worldwide.
This could lead to big problems. You may be getting sub-standard advice, the ‘accountant’ will not be supervised by a suitable body and they may not be even carrying appropriate insurance.
If you have a problem with them there is every chance that it will not be addressed by anyone; If you find yourself in a position of being investigated by HMRC or any other statutory body, the advice (or ‘advice’) you received may not have been worth the paper it was written on and you are left to face the consequences. Even if you end up going through the hassle of taking them to court for professional negligence, the chances of getting any damages you’ve been awarded aren’t exactly brilliant.
Oh and they aren’t even necessarily any cheaper.
However not everyone can call themselves a Chartered Accountant
They must pass stringent exams and a comprehensive accountancy education in the form of 3 years of on the job training before being admitted to the Institute of Chartered Accountants in England and Wales (‘ICAEW’). After qualification they are required to continue with ongoing professional development to keep on top of the game! This must be certified to the ICAEW and all qualified chartered accountants are subject to an audit of this certification.
The ICAEW is a body of 130,000 accountancy professionals worldwide and is consistently held as being a premier institution with a premier qualification. Members are bound by strict Institute Guidelines and are legally responsible for upholding such standards in the courts system.
Member firms must have also have sufficient professional indemnity insurance should there ever be problems. Again, the level of cover must be submitted to the ICAEW each and every year.
These additional responsibilities set down on its members give all clients a comfort of an enhanced service. We are proud to be Chartered Accountants and a member of the ICAEW Practice Assurance Scheme for this very reason!
Colledge & Co