How to become a chartered accountant in uk?
Octa Accountants
7 Min Read
Oct 31, 2024
Accounting Tips
If you are thinking about how to become a Chartered Accountant in the UK then read below as we take you through the entire process, from selecting the right qualification to the exams, work experience, and membership required to earn the prestigious CA title.
What is a Chartered Accountant?
A Chartered Accountant is a professional who has had thorough training in accounting, finance, and business. The CA accreditation in the UK is conferred by three important accounting bodies that include Institute of Chartered Accountants in England and Wales (ICAEW), the Institute of Chartered Accountants of Scotland (ICAS), and Chartered Accountants Ireland (CAI). Even though each of these bodies has its own standards and approaches to becoming a CA, the fundamentals are quite similar.
Becoming a Chartered Accountant in the UK is a highly lucrative job option but like any other role it comes with its own set of challenges. In addition to being a dynamic and rewarding career, Chartered Accountants are professionals who work across various industries offering expertise in financial advice, conducting audits, and ensuring compliance.
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Advantages of Becoming a CA
Becoming a CA offers an opportunity to a steady, rewarding, and adaptable profession. If you are fond of statistics, business, and strategy, becoming a Chartered Accountant might be an ideal choice for a career for you. There are a multiple reasons why people opt for this profession and a few benefits are listed below:
- High Earning Potential: CAs are among the highest paid in finance.
- Career Mobility: CAs can work in a variety of sectors and regions, with possibilities available across the world.
- Skill Development: The CA approach keeps you updated on a broad range of technical and professional abilities.
- Professional Recognition: Chartered Accountants are known for their skill, expertise and honesty across the globe.
Required Qualifications
While a degree in accounting or finance might be helpful, it’s not mandatory. What you really need is three strong A-levels, ideally including subjects like Maths, Economics, or Business Studies. However, to obtain the title of CA, you must fulfill a professional certification with one of the major accounting bodies. This includes passing tests in finance, accounting, taxation, and corporate law.
Step by Step Guide to Becoming a CA in the UK
Following is a compiled list of all the necessary steps you need to take if you wish to take on this journey of becoming a Chartered Accountant in the UK.
I) Select the Right Qualification Path:
Choosing the appropriate qualification route is the first step. Depending on your experience and professional ambitions, each accounting body offers a unique approach the details of which are as follows:
- ICAEW’s ACA Qualification: Includes 15 exams across three stages, along with training and professional development.
- ICAS Qualification: Consists of 13 exams, also split across three levels.
- CAI Qualification: A program that includes exams and training for those aiming to work in Ireland and Northern Ireland.
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II) Enroll in a training program:
Undertaking a training program is required to fulfill the experience and educational criteria. While large businesses provide thorough training, medium and small businesses offer opportunities to take on more diverse positions and responsibilities. Many firms provide CA training as part of their entry-level programs too. But no matter which option you choose, the training normally lasts three years and needs at least 450 days of hands-on job experience.
III) Pass the exam:
Each qualification stream includes examinations on a multitude of financial, management, and accounting topics. The ICAEW ACA has 15 exams that are divided into Certificate, Professional, and Advanced levels. Whereas, ICAS has 13 tests divided into three stages that include test of competence, professional skills, and professional expertise. Meanwhile for CAI the structure is more or less similar with exams focused on proficiency and professional expertise. The purpose of all these tests is to assess your understanding of financial reporting, taxation, legislation, and auditing processes.
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IV) Gain practical experience:
Experience is essential for becoming a Chartered Accountant. During training, you will work under supervision and learn skills in real-world accounting. These skills will firstly include learning how to perform audits and ensure accuracy. In addition to this you will also learn how to prepare financial statements and reports along with managing tax compliance. Lastly, you will be required to apply your accounting knowledge to strategize and make decisions accordingly. Gaining expertise in a variety of fields can help you become a well-rounded professional.
V) Complete Professional Development:
If your input tax exceeds your output tax, you are eligible for a VAT refund from HMRC. HMRC will handle it immediately once you submit your VAT return. Refunds usually come within 30 days, although they can sometimes take longer. If you have registered your bank information with HMRC, you will get the refund in your bank account. If it does not come within the scheduled timeframe you may contact HMRC for further assistance.
VI) Register as a Chartered Accountant:
After meeting the aforementioned requirements, you can apply for membership through a simple and easy process by submitting an application to your accounting body, paying your membership fee and completing Continuing Professional Development (CPD) hours each year to maintain your certification. In addition to the title of CA, the membership provides access to professional networks and resources.
Final Thoughts
While gratifying, the CA path comes with unique challenges of its own. The qualification necessitates extensive study and practical experience. Even though many firms provide financial assistance, fees and other expenditures might mount up quicker than you expected. Obtaining a training contract can be difficult, and passing the examinations needs extreme dedication and commitment.
In order to succeed you need to strategize, plan and organize. Seek guidance and advice from experienced CAs and mentors. Practice test questions to become acquainted with the format. You may also find networking helpful so connect with industry professionals to get insights and opportunities.
The financial rewards and personal growth that come with the designation make it worth the commitment. Each step, whether it’s enrolling in a recognized accounting program, passing exams, or completing practical training hours, gets you closer to joining a professional network of finance specialists. It’s a journey that entails a commitment to learning, passing challenging exams, and obtaining practical experience.
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