Should you choose a chartered or non-chartered accountant?

Which is better for your business?

Is there even a difference between the two titles?

Well, the answer is a resounding YES!

In the world of SMEs, it is common practice to have an accountant to take care of your numbers. So, are you maximising the opportunity to have the ultimate financial expertise?

Today, we are looking into the differences between a non-chartered and chartered accountant to see which is the best option for your business.

Join us as we dive into the specific differences and how you might benefit from making the right choice.

What is the Difference Between a Non-Chartered and Chartered Accountant?

In New Zealand anyone can call themselves an accountant without having any formal qualification or experience however, only properly qualified professionals are allowed to call themselves Chartered Accountants. While sometimes perceived to be used casually for any accountant, there is in fact a distinct difference between a non-chartered and a chartered accountant.

Here’s some more info on each and what the differences are:

Chartered Accountant (CA)

A Chartered Accountant is someone who has not only gained an accounting degree from an approved university, but has then done further work to prove their skill, knowledge and expertise in the accounting field.

An applicant must complete Chartered Accountants Australia + New Zealand’s Graduate Diploma of Chartered Accounting and demonstrate three years of mentored practical experience with an approved employer before being able to apply for full membership to the Chartered Accountants Australia + New Zealand (CA ANZ) professional body.

Only once all of these requirements have been met successfully can someone officially call themselves a Chartered Accountant.

Non-Chartered Accountant

A non-chartered accountant is an individual who has not completed the necessary CA qualification process and does not have membership with a professional accounting body like CA ANZ.

These individuals may still have accounting qualifications or might have years of relevant experience. However, they are working in the accounting field without pursuing the chartered accountant designation. Without them having undertaken the CA certification process, there is no way of officially quantifying their skill or experience.

The Differences:

There are some key differences between a non-chartered and a chartered accountant. They are:

Qualifications:

A Chartered Accountant has completed an accounting degree from a recognised university and has then achieved a post graduate qualification. This process will have included specific educational requirements, practical experience, and exams. A non-chartered accountant may not have any recognised qualifications.

Professional Membership:

To be recognised as a Chartered Accountant, you must hold a membership to Chartered Accountants Australia + New Zealand (CA ANZ). This membership is not just a shiny title, it means that Chartered Accountants must adhere to strict professional standards and ethical codes to maintain their membership.

Recognition:

Being a Chartered Accountant is widely recognised as a mark of excellence and professionalism in the accounting field. Non-chartered accountants may have trouble commanding the same level of respect.

Accountability:

As a member of CA ANZ, Chartered Accountants are expected to meet the highest standards of professionalism and performance expected of leading accounting professionals. Clients have recourse to the CA ANZ complaints and disciplinary process if they feel these standards have not been met.

Chartered Accountant or Non-Chartered Accountant?

With those definitions in mind, we believe that there are a number of advantages to choosing a chartered accountant (CA) over a non-chartered one. These are some of the reasons why that is:

Expertise and Knowledge

As we indicated above, a CA will need to undergo rigorous training and education to earn the right to their title. This means that they will have a deep understanding of accounting principles, taxation law, IRD regulations, financial reporting, and business acumen.

This expertise is a real asset to your business as a CA can help you make more informed financial decisions and navigate complex financial matters more effectively.

Professional Standards

CAs are bound by the strict code of ethics and professional standards set by the CA ANZ. Having to abide by these professional standards ensures they maintain the highest level of integrity and professionalism in their work. This attention to detail is crucial for maintaining accurate financial records and compliance for your business.

Comprehensive Services

Because CAs have a wide range of financial skills, they can offer the comprehensive services to match. Beyond simple bookkeeping and tax filing, a CA can also offer financial planning, budgeting, forecasting and analysis tailored to the needs of your business. They will become a key player in helping to encourage your business growth and success.

Tax Benefits

CAs have a thorough understanding of New Zealand’s tax laws and IRD regulations. This means they can help you identify potential tax saving opportunities, manage your tax liabilities, and ensure your business complies with tax requirements. This knowledge can lead to potential cost savings for your business, and peace of mind that you are meeting your tax obligations.

Strategic Advantage

With all that knowledge and expertise, you aren’t just getting someone who will tick your financial boxes. Rather, you have an experienced business brain who can offer valuable advice and consultation. They can help you develop successful business strategies, assess your financial risks, and identify growth opportunities. Their insights can contribute towards you being able to make sound business decisions.

Long Term Partnerships

CAs often aim to build lasting relationships with their clients. Well, that’s definitely what we like to do at Drumm Nevatt and Associates anyway!

This long term continuity allows our team to understand the specific financial needs and goals of your business. It means we can offer you more personalised and effective advice, as well as ensuring your business always remains compliant.

We’d love to discuss how we can help your business succeed with our chartered accounting services. So, please book a convenient time to speak with us now.