Difference Between Accountant and Chartered Accountant

Accounting is a profession of communicating financial information of a business to users like managers and shareholders. Communication is usually done in the form of financial statements that reflect the flow of money in the manager's control. Financial matters are one of the most elusive and complicated topics that many of us will ever face in our day-to-day life. However, to ensure our financial well-being, it is necessary to keep accurate records, proper filing and adhering to local and national laws. Due to the fact,  an accountant is the best substitute for managing these matters efficiently and systematic. An accountant knows the subtleties of financial legislation, they provide answers to the most complicated of pecuniary questions and they will provide clarity and transparency while dealing with any personal finance management. In this article, aspirants will know the difference between an accountant and a chartered accountant.

When we are trying to recognise a comparison between a chartered accountant and a regular accountant, we will get that there are several important differences. Generally,  we call both of them as an accountant, in spite of what licensing or education they have. A chartered accountant is someone who possesses membership in either the Institute of Chartered Accountants (ICA) or the Association of Chartered Certified Accountants (ACCA). These are authorised organisations that only allow membership after a series of examinations have bееn passed and after a certain amount of work experience has been undertaken.

An Accountant:

An accountant is one who is working for an individual company or organisation. An accountant is responsible for providing an accurate and real-time record of the financial transactions of any organisation. He/she have to be aware of all of the significant guidelines during these transactions. An accountant has an option of where he can be employed. Some people work directly in a full-time role for a large organization, while others can choose to meet the demands of the private person instead. The accountant helps people in a way that they correctly compile and file their tax returns each year. he/she can also practice in more discreet fields such as fund management, estate planning, retirement packages or investment options. Thus, a strong experience is necessary to play this role efficiently

Usually, they work for long hours, especially when they are preparing tax-related documents. These type of employees are also required to take part in many examinations and audits of financial records. Meanwhile, accountants who are in the corporate sector may be required to administer financial studies and analyse them. They have to conduct risk analysis for large companies to make investment decisions in the future. If Accountant works 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 common activities of accountants include:
  • They are responsible for balancing accounts and preparing financial documents on a regular basis or as requested.
  • They have to prepare and pay tax returns for large corporations.
  • They are responsible for entering and managing data/record about payables, profits, sales taxes, and other transactions in an orderly manner.
  • They participate in planning and budget meeting with corporate individuals to give guidelines and important report for financial and investment opportunities.
  • They are also responsible for ensuring financial practices follow the guidеlinеѕ or state and federal laws.
A Chartered Accountant (CA):

We all know that a chartered accountant will generally have gone through more training than a normal accountant. A chartered accountant requires to have successfully completed an academic Master’s degree program and upon graduation have gone under a mentor program for a period of no less than three years. Instead of specializing in tax returns and other "real-time" aspects, a chartered accountant will focus on providing accurate records of all financial transactions to a person or business.  Thus, these types of accountants are likely to be employed in a more commercial capacity. Examples may include large non-profit organizations, corporations and commerce or industrial areas.

Usually, Accountants are engaged in public practice work and they will have a practising certificate which will declare them fit to do so. CA have met further requirements and that they have the relevant professional experience with which to serve you.

CA’s Responsibilities-
  • Chartered Accountants are responsible to undertake financial audits (an independent check of an organisation's financial position)
  • They provide financial advice
  • CA gives advice to clients on business transactions, such as mergers and acquisitions (corporate finance)
  • They produce reports and recommendations following internal audits or public-sector audits.
  • They manage financial systems and budgets.
  • They perform tests to check financial information and systems
  • They are responsible to maintain accounting records and prepare accounts and management information for small businesses (accountancy)
Difference Between An Accountant and A Chartered Accountant
 

An Accountant

A Chartered Accountant

Type of Profession

An Accountant is a professional who maintains the accounts of various kinds of small or medium business.

CA is an expert in auditing financial statements and business, taxation and offers advisory services to clients.

Qualification Required

Should have completed three years Bachelor's degree from Account stream

Appearing for Class 12th usually from commerce stream but Graduation can be done from any stream.

From where

UG degree should have pursued from a recognised university

In India, CA course can only be pursued through the Institute of Chartered Accountants of India (ICAI)

Career Prospects

Can work as a Junior Accountant, Senior Accountant, Section Officer, Account Officer.

Can work in any Accounting Firms, Finance Department and also start their own  business

Average Salary

Rs 10,000 to 18,000

Depend upon work area

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Date: 27 Feb 2019

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