Chartered accountant
Chartered accountants provide a range of financial advice and accountancy services, including auditing and financial analysis
As a chartered accountant, you'll give advice, audit accounts and provide trustworthy information about financial records. This might involve financial reporting, taxation, auditing, forensic accounting, corporate finance, business recovery and insolvency, or accounting systems and processes.
Chartered accountants work in a range of organisations, including public practice firms and within industry and commerce, as well as in the not-for-profit and public sectors. Working strategically, your aim is to maximise profitability on behalf of your client or employer.
Responsibilities
As a chartered accountant, you'll need to:
- manage financial systems and budgets
- undertake financial audits audits (independent checks of an organisation's financial position)
- provide financial advice
- liaise with clients (individuals or businesses) and provide financial information and advice
- review the company's systems and analyse risk
- perform tests to check financial information and systems
- advise clients on tax planning (within current legislation to minimise their tax liability) and tax issues associated with activities such as business acquisitions and mergers
- maintain accounting records and prepare accounts and management information for small businesses (accountancy)
- advise clients on business transactions, such as mergers and acquisitions (corporate finance)
- counsel clients on areas of business improvement, or dealing with insolvency
- detect and prevent fraud (forensic accounting)
- manage junior colleagues
- liaise with internal and external auditors (where applicable) and deal with any financial irregularities as they arise
- produce reports and recommendations following internal audits or public sector audits
- prepare financial statements, including monthly and annual accounts
- arrange financial management reports, including financial planning and forecasting
- advise on tax and treasury issues
- negotiate terms with suppliers.
Salary
- Accountant salaries vary depending on the location, sector, size and type of firm, but graduates can expect to start on around 拢25,000 to 拢30,000.
- During training this may rise to approximately 拢40,000.
- Qualified chartered accountants usually earn up to 拢65,000, depending on their level of experience.
Roles in banking and capital markets tend to attract the highest salaries, and larger employers generally offer higher pay.
Salary packages may include benefits such as bonuses, profit-sharing schemes, medical insurance, pensions and car allowances.
Income figures are intended as a guide only.
Working hours
Working hours vary depending on the role and the organisation but typically aren't 9am to 5pm. Working extra hours in the evening and at weekends is quite common to meet deadlines, particularly in larger firms. As a trainee, you'll usually be given time off in lieu of any overtime worked.
Flexible working arrangements are often possible after qualification. You may also choose to work independently as a sole practitioner.
What to expect
- Jobs are available in most areas throughout the UK but are more commonly found in cities and larger towns, where higher salaries are typically earned. Post-qualification opportunities exist overseas. The ICAEW also offers international training opportunities.聽
- Due to the high-profile, high-responsibility nature of the work, the dress code is usually formal.
- Support and advice for women entering accountancy is offered by Women in Banking & Finance, which aims to empower women to reach their full potential. However, a gender pay gap still exists.
- Travel within a working day is frequent in audit work, which is carried out mainly at client premises. Absence from home overnight and occasional overseas travel is possible.
- Working in other areas, such as tax, or in smaller firms, tends to be more office-based with less travel.
Qualifications
Entry is open to graduates of all disciplines, as companies offering training agreements are interested in graduates from a range of backgrounds. Entry to the profession without a degree or HND might be possible, but graduates will have the competitive edge over other candidates. Candidates with a degree are generally preferred to those with an HND by larger employers.
A Certificate in Finance, Accounting and Business (CFAB) serves as a useful step between a degree and a training contract. Alternatively, some employers train students to do the Association of Accounting Technicians (AAT) accounting qualification, which can lead to chartered status and does not require a degree.
The three main professional institutes awarding UK chartered accountancy qualifications are:
- Chartered Accountants Ireland (oversees both Ireland and Northern Ireland)
- ICAEW
- ICAS
All routes lead to the 'chartered accountant' designation with equal recognition. ICAEW members are designated ACA (Associate Chartered Accountant), while ICAS and Chartered Accountants Ireland members use CA.
Securing a training contract with an approved employer is often the most competitive part of becoming a chartered accountant. Strong numeracy skills and mathematical ability are essential and will be assessed during selection.
The training contract lasts three to five years, so it's important to consider the package of training, leave and pay offered by your employers before you commit, as combining work with professional study can be demanding.
The National Audit Office (NAO) runs a聽Chartered Accountancy Training Scheme for graduates and school leavers, resulting in membership of the ICAEW. Applications are accepted in the autumn of the year before the start date.
Competition is strong, so start applying early in your final year. Attend on-campus presentations and recruitment fairs to meet large firms.
Skills
You'll need to have:
- general business awareness
- self-motivation and commitment to combine work and study successfully
- communication and interpersonal skills
- organisational and time management skills
- a methodical approach
- IT proficiency
- strong analytical and problem-solving skills
- numeracy
- leadership and teamworking skills
- initiative and motivation
- integrity and trustworthiness.
Work experience
Contact accountancy firms to ask about opportunities for vacation work, work placements or shadowing to gain relevant pre-entry experience.
Employers
You can work in any sector and in any size of organisation, although most training opportunities for chartered accountants are in public practice. Check your chosen firm is authorised by one of the relevant institutes.
Having a range of employers to choose from means you can pick your preferred working environment. Larger firms, where the vacancies are concentrated, have offices in major cities and towns around the country and overseas. Smaller firms may be concentrated in a particular location or specialise in a particular type of client.
Employers include:
- public practice - from international accounting organisations to smaller accountancy firms, known as small and medium practices (SMPs) - offering a variety of accounting and business services
- industry and commerce - including major companies in manufacturing, retail and telecoms
- public sector - including government, education, charities and not-for-profits. Though historically a smaller recruiter, opportunities have grown in recent years.
Look for job vacancies at:
The online trade publication Accountancy Age provides current news on industry developments, including those affecting the accountancy jobs market.
Recruitment firms specialising in accountancy jobs include Sellick Partnership and Robert Walters.
Professional development
Continuing professional development (CPD) is essential. Your professional body membership supports this, and your employer will also offer in-house training to build both technical and general skills.
Kaplan recommends learning a foreign language or undertaking charity work to broaden your skills and experience.
Career prospects
Most chartered accountants train in public practice. The first three years typically focus on achieving the ACA or CA qualification, gaining experience, supervising junior staff, and liaising with clients.
You may undertake a secondment to gain broader experience, possibly including time overseas. You typically remain with the same employer for the duration of your training contract.
Progression is usually structured. You could become a manager within two years of qualifying, and a senior manager after around five. Partnership is competitive but possible within eight to fifteen years. In smaller firms, progression may be quicker. Reaching finance director level in a major company is possible within 10 to 15 years of qualification.
After training, around half of qualified chartered accountants move into roles in commerce, industry, financial services, banking, or the public and not-for-profit sectors. Early roles include internal auditor, financial accountant and business analyst.