What Is a Chartered Accountant CA and What Do They Do
A chartered accountant (CA) is a qualified financial professional who executes accounting procedures internationally, excluding the United States. CAs specialize in four main areas: applied finance, financial accounting and reporting, management accounting, and taxation. Their responsibilities include filing taxes and auditing financial statements. This designation is equivalent to the certified public accountant (CPA) designation in the United States.
Key Takeaways:
– Chartered accountants are financial professionals who execute accounting procedures.
– The CA designation is granted internationally, excluding the United States.
– The CA designation is equivalent to the CPA designation in the United States.
– CAs focus on audit and assurance, financial accounting and reporting, management accounting, or applied finance and taxation.
– Some chartered accountant institutions have reciprocity agreements with the U.S., allowing CAs to work as CPAs.
Duties and Responsibilities of Chartered Accountants (CAs):
CAs work in the field of accounting in both the private and public sectors. They assist organizations, businesses, governments, and individuals with their financial needs. CAs specialize in one of four areas: applied finance, financial accounting and reporting, management accounting, or taxation. Depending on their area of focus, CAs may handle auditing financial statements, oversee all accounting needs for a company, or work as freelancers for multiple clients. The CA designation qualifies them to file tax returns, audit financial statements and business practices, and offer advisory services.
CAs and CPAs have similar day-to-day tasks.
How to Become a Chartered Accountant:
The process of becoming a CA varies by country. Generally, CAs need a university degree in a related field such as accounting or finance. Special coursework and practical experience programs may also be required for certification. Different countries have different educational requirements and professional bodies for CAs.
Job Outlook and Salary for CAs:
The job outlook for CAs varies by country. CAs are in demand due to their analytical and technical skills, communication skills, time management, and problem-solving abilities. In Canada, the median hourly salary for CAs was $38.46 in 2021, with a projected increase in job opportunities. In the United States, where CAs work as CPAs, there is also a positive job outlook with an expected 6% growth and additional jobs created.
Chartered Accountant (CA) vs. Certified Public Accountant (CPA):
The main difference between CAs and CPAs is that the CPA designation is used in the United States, while the CA designation is used in other countries. However, there are reciprocal agreements between certain CA institutions and the United States, allowing CAs to work as CPAs after passing certain exams.
What’s the Difference Between a Chartered Accountant and a Certified Public Accountant?
Chartered accountants and certified public accountants perform similar functions. The primary difference is the geographic regions where these designations are used. They work for corporations, individuals, governments, and organizations in the public and private sectors. Responsibilities include filing taxes, applied finance, auditing and financial reporting, and management accounting. Some CAs can work in the United States as CPAs after passing a test.
How Do I Become a Chartered Accountant?
The requirements to become a chartered accountant depend on the country. Generally, an undergraduate degree in accounting or finance and special coursework are required. Work experience, such as internships, is also beneficial.
What Is the Job Outlook for Accountants and How Much Do They Earn?
According to the Bureau of Labor Statistics, the average annual salary for accountants was $77,250 in 2021. The industry is expected to grow by 6% between 2021 and 2031, with an additional 81,800 jobs.
The Bottom Line:
Accounting offers strong and steady job opportunities, including the option to become a chartered accountant. These professionals hold special certifications in various countries and have similar responsibilities to chartered public accountants in the U.S. CAs can find work in the public or private sector, serving businesses, governments, individual taxpayers, and organizations.
