Accountancy is a popular professional sector. It’s always in-demand, offers excellent compensation and makes use of various skill sets such as analysis, statistics and planning. If you’re thinking about becoming an accountant, want to build on your existing skill set or just want to know more about the various financial skills you can learn, we’re answering the question ‘what different accounting qualifications are there’.
What does an accountant do?
Before we examine accounting qualifications, let’s look at what an accountant actually does. An accountant controls the financial accounts of a business, with the goal of achieving and maintaining financial stability.
Depending on the structure of your business, an accountant may authorise payments, move money between business accounts, conduct financial planning for the business and provide analysis around business performance.
Accountants often work as part of a larger accountancy team, typically run by a Senior Accountant or Manager.
Do you need a qualification to be an accountant?
While a degree – or professional qualifications – isn’t technically mandatory to be an accountant, the majority of roles will expect you to have academic experience or an official qualification.
Aspiring accountants will generally complete an accounting, economics or finance degree during university as these are the most relevant, although they may also look at mathematics or statistics degrees which provide transferable skills.
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Professional qualifications tend to be a similar length to a degree and often studied while you’re working. There are several different organisations across the country offering professional qualifications which then open up routes into accountancy depending on what you’re looking to achieve.
What different accounting qualifications are there?
There are several different types of accounting qualification in the UK, all of which mean different things but generally demonstrate that an accountant has the requisite knowledge and experience to perform the role to a high standard.
The five common accountant qualifications in the UK are:
• Associate Chartered Accountants (ACA)
• Associate Chartered Certified Accountants (ACCA)
• Chartered Institute of Management Accountants (CIMA)
• The Institute of Chartered Accountants of Scotland (ICAS)
• Association of Accounting Technicians (AAT)
Associate Chartered Accountants (ACA):
The Associate Chartered Accountant (ACA) qualification is a recognised qualification from the Institute of Chartered Accountants in England and Wales. Students looking to gain this qualification must complete the five-year course and build 450 days of work experience in the field whilst also training with an authorised employer.
The first three years of the course are split into different categories. The first year is ‘certificate level’ and looks at accounting, assurance, tax, law, management information, business and finance. The second year is ‘professional level’ and focuses on more specific business accounting including reporting, auditing, assurance, tax, compliance, business planning and strategy. The final stage is ‘advanced level’ and looks at corporate reporting on top of strategic business management.
Once someone is ACA qualified, they can start working in an accountancy firm, start their own accountancy practice or work for a private organisation.
This qualification is one of the most prestigious and as such, ACA-qualified accountants are often in high-demand, making it one of the most competitive courses available.
Associate Chartered Certified Accountants (ACCA):
This is one of the fastest growing qualifications for accountants, allowing students to either study independently or alongside an employer. It requires three years of relevant work experience to qualify and students have up to 10 years to pass the final exams, although many qualify in under five years.
After completing this qualification, the account is chartered certified and can then start their own practice, work with a private business or accountancy firm or operate in the public sector. Professionals with this qualification often work as financial advisors or auditors.
Chartered Institute of Management Accountants (CIMA):
This accountancy qualification is focused on business and management accountancy – delivered by a professional body and can be earned either through independent study or through a training agreement with an employer.
To qualify, students require three years of work experience and must pass final exams. Post-qualification, CIMA-qualified accountants generally work within a business rather than operating in an accountancy firm.
Due to the nature of the qualification. CIMA accountants also typically work as financial controllers or financial managers. This qualification is in high-demand because of the skill set it helps accountants build.
The Institute of Chartered Accountants of Scotland (ICAS):
The Institute of Chartered Accountants of Scotland is widely recognised as the world’s first professional body for accountancy and as such, they offer a highly prestigious qualification respected by employers in the field.
The qualification covers a wide range of subjects within accountancy – from general accounting and finance to business – which means that ICAS accountants are able to operate across fields such as corporate finance, auditing, private accountancy, tax accountancy and forensic accountancy.
An ICAS qualification is one of the most prestigious in the world and is highly-desirable with top employers, to the point where 80% of FTSE 100 employers opt for ICAS chartered accountants.
To be eligible for this qualification, students have to set up a training agreement with an employer, build 450 days of work experience and pass three exams.
Association of Accounting Technicians (AAT):
This qualification is delivered by the main body for accountancy technicians and includes three different qualification levels. Each qualification takes between six and 18 months to complete and when finished, the certified accountant is able to start a company, operate as a self-employed accountant, work for a business or start qualifying as a chartered accountant.
The three levels are split into:
• AAT Foundation Certificate in Accounting – Level 2
• AAT Advanced Diploma in Accounting – Level 3
• AAT Professional Diploma in Accounting – Level 4
AAT-qualified accounting technicians or accountants often work accounts, payroll administration, as account/finance assistants, senior bookkeeper or in analysis.
While it’s a great example of skills and understanding, it’s important to realise that AAT qualifications are a starting point and a springboard into future expertise.