How to check if your accountant is qualified

We’re all familiar with the existence of the accounting industry, and some of us very lucky souls might even know an accountant personally!

But a lot of people still don’t fully understand exactly what it is accountants do, and that can be a problem as a contractor, if you suddenly need to appoint an accountant to look after your business and tax affairs, writes Rachael Johnston of The Accountancy Partnership.

Beware contractors, anyone can market themselves as an ‘accountant’!

It’s true -- the job of an accountant is vast. Unless you’re in the industry yourself, or you’ve been working with accountants for years, it might be tricky to understand how they can help you, and how you can spot the good from the bad.

The market has plenty of choice when it comes to accountants. Both online or on the high street. And if you’d like an accountant that specialises in a specific industry -- like the contractor sector -- then you’ll have even more choices to make.

With all these options, you need to pick wisely and that’s because the term ‘accountant’ isn’t regulated in the UK. Literally anyone can call themselves an accountant, regardless of whether they’re qualified or not!

Don’t panic though, here, we’re going to go through how to check your accountant is qualified – before you put your limited company’s accounts in their hands!

What qualifications do accountants have?

The best way to know whether an accountant is the real deal (or not) is by looking at their credentials.

Lots of accountants will have credentials specified after their name – or within their email signatures or on their LinkedIn profiles.

The six most common qualifications for accountants you’re likely to see in the UK are:

1. Charted Certified Accountant

If you see the letters ‘ACCA’ after an accountant’s name, this means they’ve been trained up and qualified with the Association of Chartered Certified Accountants.

The good news is the terms ‘Chartered’ and ‘Certified’ are protected, so you’ll know that the adviser you’re considering or talking to has at the very least the minimum accountant’s qualifications they need – as well as being a member of their professional body.

If they have more qualifications or more than 5 years’ experience under their belt, their letters may change to ‘FCCA.’

2. Chartered Accountant (England, Wales and Ireland)

Members of the Institute of Chartered Accountants in England and Wales (ICAEW), or if they’re from Ireland, Chartered Accountants Ireland (CAI), use either ‘ACA’ (Associate Chartered Accountant) or ‘FCA’ (Fellow Chartered Accountant) after their name.

3. Chartered Accountant (Scotland)

This is for the Institute of Chartered Accountants in Scotland, and means the accountant is a member of the ICAS and will use ‘CA’ after their name – which you’ve likely guessed means Chartered Accountant!

4. Chartered Tax Adviser

If they’re a member of the Chartered Institute of Taxation, they may use ‘CTA,’ ‘FTII’ or ‘ATII’ after their name.

5. Accounting Technician

This title is for fellow members of the Association of Accounting Technicians (AAT), who commonly use ‘MAAT’ after their names.

6. Charted Management Accountant

These individuals are members of the Chartered Institute of Management Accountants (CIMA) and they use either ‘ACMA’ or ‘FCMA’ after their name.

If an accountant has multiple credentials and they are – let’s say – a Chartered Certified Accountant and an Accounting Technician, they’ll have both credentials after their name. In this instance, that would be ACCA MAAT.

There are other qualifications which are perfectly valid, so if there’s any you don’t recognise, search for the initials online, and have a look at what it is they’re claiming to have as a qualification.

How do I find a qualified accountant?

If you’re looking for someone to deal with your company accounts, having the initials after their name may not be enough to give you complete comfort – which is completely understandable! The great thing is you can put your mind at ease by checking whether the accountant is a member of a professional accountancy body.

All of the qualifications above are professional accounting bodies, and many provide searchable online directories. For instance, if you’re looking for an ACCA member, simply search them by their name on the ACCA’s ‘find accountant’ page.

You can do the same with accountancy firms. Other professional bodies you can search for include, ICAEW, ICAS and CAI.

Can I ask an accountant for a reference?

Absolutely! If you’re still unsure about whether to appoint a specific accountant, you can ask for a reference (or two) from a few of their existing customers. Assuming you’re satisfied, you can then begin to work with them, safe in the knowledge that you both checked them out and can see that they’re qualified to do the job!