It is an established fact that most business owners and entrepreneurs cannot distinguish various categories of accountants like bookkeeper, accountants and chartered accountants. Where they can discern the difference, they always prefer to use bookkeeper or accountant due to difference in fees charged. Instead of patronizing the services of chartered accountant they prefer to go for the ordinary accountants that is cheaper.
This is done at their own peril because the ordinary accountants lack the academic, training and the practical exposure necessary for accounting services.
A Chartered accountant is a person who has passed all the professional examinations of an accounting body and completed post-graduation and have gained three years of experience by working with an expert in the field.
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.
Chartered accountants perform tasks like taxation, financial reporting, business financing, auditing, business planning, budgeting, forecasting, company secretarial and others.
Reasons to Choose a Chartered Accountant
The modern-day business environment is extremely competitive and fraught with risk. Engaging a finance professional is often seen as a key component of a business’ success.
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.
Major Roles of Chartered Accountants in companies and enterprises.
Ensuring finances and taxes are handled correctly
Chartered accountants will handle your finances and taxes properly. This serves to ensure full compliance with the law. This is the best way to keep you out of any trouble with the tax authorities in the future. Since the chartered accountant will help you fill out the required paperwork and turn it in, you will have the peace of mind since all your business transactions are handled accordingly.
Accuracy of your Payroll
If you are in business with people who are on your payroll, a chartered accountant can help ensure that everything you are doing in regards to your employees is being taken care of and within the regulations of the law as well. A chartered accountant will double check the taxes withheld from the employee’s wages as well as any other contributions that should be withheld in your area.
Ensure Timely Tax Compliance
Chartered accountants are also very experienced in figuring out the best way to use your money to enhance your business. They are very knowledgeable of the tax laws and will be able to help you invest money back into your business knowing how it will affect you with the taxes in the long run so that you come out more prosperous than doing it alone.
Ensure Proper Financial Managements
Choosing to hire a chartered accountant is also beneficial in helping you find the best way to spend your money in the house so that at the very least, you are not losing money while running your business, not to mention the added benefit of them being able to help find ways to bring in extra money. They can contribute to ensuring that your books are to show a potential investor situation as well.
Chartered accountants will save you lots of money. While the money you pay out when hiring accountants may seem higher the investment is well worth it. The benefits of earning more money, saving money on taxes while having the peace of mind that all of your paperwork is handled correctly and within the legal standards is worth the money, especially if you consider the legal liability you could suffer without the guidance and help from the best chartered accountants in the area.
Chartered accountants are also very well exposed by training and practice to the areas of company administration with regards to ensuring compliance with the statutory and regulatory requirements such as filing returns, increase in share capital, change of directors and others. They are very knowledgeable of the business laws and will be able to help you do appropriate things that make your business to be right standing with the law.
Six Benefits of Using a Chartered Accountant.
1) Reliable Advice
When it comes to your finances, you need to know your money is in safe hands – chartered accountants must comply with professional development standards, ensuring their knowledge and skills are always kept up-to-date.
Using a chartered accountant gives you the reassurance that the advice you are receiving is both accurate and informed.
As the Engine Room we get to know your business, as well as what you are trying to achieve, so we can ensure that the advice we provide is right for you and your business.
2) Work with observation of code of ethics and professional standards
When you work with a chartered accountant, you’ll benefit from a professionally qualified individual that is bound by a code of ethics and professional standards.
Not only will they have certain policies and procedures in place (including quality control procedures, and complaints and disciplinary procedures) they also undergo monitoring of compliance and quality reviews of their professional practice.
3) Exposure and experience in various industries and sectors
To qualify as chartered, your accountant will have had to carry out work for a breadth of different clients across a range of industries.
Building acute business awareness and strong personal judgement, a chartered accountant will have gained a vast amount of experience and will be comfortable working with high performing businesses as well as those under financial pressure.
Chartered accountants are required to put in considerable hours of professional experience in order to earn their ACA designation. That’s a lot – and we mean a lot – of time spent honing their craft.
If you choose a chartered accountant that specialises in your particular field or industry, you’ll benefit from specific expertise that matches your scale and type of business.
The Engine Room’s senior accountants have extensive combined experience working in and with businesses including advising on accounting and taxation, software implementation, buying and selling businesses and advisory board services.
4) Accuracy and Integrity is Key
Your accountant will be dealing with your business finances (and likely your personal information too) so you need to have confidence that they can be both trustworthy and discreet. Chartered accountants are bound by a code of ethics to uphold a set of professional principles, endeavouring to always put their clients’ interests above their own.
ICAN members are required to demonstrate a commitment to maintaining and developing professional standards — so you know your financial interests are always put first.
5) Owners and Managers are Saved from embarrassment
Let’s be honest, you didn’t start your business so you could be jack of all trades and master of none. You had a vision — a passion — but now you spend a big chunk of your time on meeting your responsibility as a business owner to ensure your financial affairs are in order. So, get back to the fun stuff and hire a chartered accountant to take care of the number crunching for you.
6) 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 viable financial and business strategies by recognising changing demands in the business environment.
They will use this insight to recommend tailored solutions for your business. Offering you practical advice, they’ll help you meet the myriad challenges you and your business will undoubtedly face.
In conclusion, 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.
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