I would start by making everyone aware that anyone, yes anyone, can call themselves an “accountant”. If my pet goldfish could talk, he could! It is something that has always perplexed me, having trained for seven years to gain my qualification.
So, if you are in the market for an accountant, please check their qualifications. As an absolute minimum they should be AAT qualified. But for added knowledge and accountability you should use a Certified or Chartered accountant.
To give our complicated world of qualifications some meaning,
- AAT – Association of Accounting Technicians is a Level 4 qualification (same as a first year of a Bachelor’s degree)
- ACCA – Association of Chartered Certified Accountants qualification (same as a Masters degree)
- ACA – Association of Chartered Accountants (same as ACCA level)
Of course, there are many people in the industry that are very capable, without a formal qualification, but sadly I have seen too many mistakes by unqualified individuals costing business owners money.
One of the worst cases I have seen recently was income of a small high street clothes shop being artificially increased as there was an entry made for debtors (money owed to the business) of £50,000 which was actually the stock figure. No common sense was used as you don’t buy clothes from a small shop on credit. This meant the owner had to find around £14,000 extra tax. Needless to say, I swiftly corrected the situation and obtained a refund.
In my view, it’s dangerous the term “Accountant” is not protected, so please do your homework, don’t be afraid to ask.
Yes, a qualified accountant may cost more, but comes with assurances they are governed by strict rules and should be able to give you the best advice, having been examined to a high level.