Chartered Accountant? WHY?

Saint Sonner

I have a meeting with the directors of the company I work for tonight and I think they will start the following discussion. 'Why do we need a chartered accountant in our company??'

Can anyone help me with my argument! They are a young emerging company with the potential to be really successful in the future.

Thanks in advance!

Count Duckula

I don't mean to be cruel, but if they're only a young company, why do they need a chartered accountant in the company? Working with a firm would make much more financial sense, surely? There won't be enough work to warrant a full-time accountant on the payroll.

Sorry!

Saint Sonner

Count Duckula wrote: »

I don't mean to be cruel, but if they're only a young company, why do they need a chartered accountant in the company? Working with a firm would make much more financial sense, surely? There won't be enough work to warrant a full-time accountant on the payroll.

Sorry!

Well they are young in the sense they have been going for about 3 years - their turnover is just over £10m per year (and growing) - they had a couple of people doing admin and posting invoices etc in their office but they needed someone in to produce monthly management accounts and do other more complex things! Due to the tightness of margins and the rapid pace of the business they do need someone of that standard! Thats where I came in - I am looking to negoiate time off to complete my FAE's thats why i'm thinking, what if they say i don't care if your chartered or not - but it does to me!

Count Duckula

Sounds like they need a management accountant rather than a chartered accountant, surely?

Saint Sonner

Count Duckula wrote: »

Sounds like they need a management accountant rather than a chartered accountant, surely?

Yes thats exactly what they need and thats why they employed me however are there any advantages too them to have a management accountant is chartered through ICAI? Possibly not!

I'm trying to sell it to them if you see what i'm getting at!

endabob1

They need someone who can give them timely monthly management accounts to ensure they have accurate information for decision making and driving the company forward;

They also need someone who can look after all their statutory & legal reporting requirements.

You can fulfil both roles as a chartered accountant.

kennyb3

The way you ve phrased this sounds like you are getting us to answer an exam question.

Surely the company would employ you based on your individual qualities and the fact you are a competent and fully qualified accountant with a good track record ambition etc more so than based on what body you trained with.

Surely you should sell yourself first, this involves backing it up with im ACA qualified and have a sucessful exam history as shown by etc etc.

Im not going to mention the differences between the bodies, the training and qualificatiosn etc. There is a thread stickied above already.

smcgiff

Endabob1 and Kennyb3 give good answers.

I can see why being a qualified accountant is a saleable quality. It's backed up by an institute. i.e. the institute expect you to keep up to date with CPD and you're a memember based on keeping in good stead with them.

This means you also have back up for technical queries (in theory at least).

Maybe picking you up wrong but it seems unlikely that your firm will care (you are already in the job right) whether you are CAI, ACCA, CIMA or CPA.

This may be important to you, but you can't expect it to be an issue for your employers who'll most likely not know the difference between the different membership bodies.

LightningBolt

If you're doing CAI in industry surely you need somebody who is CAI qualified to complete your training contract?

Unless of course you've already had a training contract of some sort for 3/3.5 years and have yet to pass exams?

I could be wrong on the requirements (most likely am!).

smcgiff

Don't think the employer needs to have a CAI accountant to supervise or even a qualified accountant if the company is audited to complete a contract.

EamonOSullivan

These apply equally to other accountants qualified from other institutes:
1. As a qualified accountant you will have knowledge of issues beyond the front door of their business - Corporation Tax, audit, key performance indicators, comparative industries and so on.
2. You are ambitious for yourself and can help them - in other words you have shown your mettle by getting through exams while also working, probably putting in 60-hour weeks when you add study and working time, and are a determined individual.
3. You can talk with authority to people outside the business - when you prepare management accounts, they will carry far more weight with the bank, outside auditors, investors and so forth.
4. Because of the foregoing you will be in a better position to get reliable management accounts to them by say the 2nd or 3rd of the month following, putting them in a great position to plan for the month ahead and further into the future.

chicachic

I am a newly qualified solicitor and looking to a possible transfer to legal costs accountancy. Can anyone offer some words of advice on this area?