5 Factors Ensure Need of Chartered Accountant in Business
Your accountant is chartered or not, does not make a difference. Until when they are maintaining your accounts, does it really matter? The decision of assigning the responsibility for your financial deeds to an accountant can turn out as a riskier act if he/she is not chartered. Also, it differentiates between your accounts being maintained professionally, ethically and above board then you being involved in the dishonest activity. The are ensure some factors that will help you in understanding the need for a chartered accountant in your business.
Still not agreed? Listed below are the 5 factors that will help you in understanding the need for a chartered accountant:
#1. Suggest Accurate and Informed Advice:
It is guaranteed, if you are using a chartered accountant, the advice provided by him would be confirmed to accurate and informed. Also, the aspect where your money is involved, you would love to know whether your money is in safe hands or not? ICAI Guidelines for a chartered accountant, he/she must follow professional development standards and must be up-to-date with the knowledge and skills.
#2. Supervised by professional community:
The profit of working with a chartered accountant is that you will get services from a professionally qualified individual who complies with a code of ethics and professional standards. Also, they remain blessed with certain policies, procedures, professional indemnity insurance, complaints and disciplinary procedures. Not even this, they have a look at compliance and quality reviews of their professional practice.
#3. Boosted with Experience:
Qualified as a chartered accountant is not an easy task. It is possible that your accountant has worked with different clients across a range of industries. Have experience of working with businesses that are high performing to those under financial pressures. But the chartered accountant has acute business awareness and strong personal judgement. Also, they have specialization in a particular field or industry and it benefits you with expertise that relates to your scale and type of business.
#4. Because of Honesty matters
There are chances that your accountant is handling both of your personal and business finances, in such a situation you required to have faith that they can be anything trustworthy and discrete. While the Chartered accountants have to follow a code of ethics to maintain a set of professional principles, always strive to put the interests of their clients above their own. For them, practising means showcasing a commitment to preserving and evolving professional norms, so that the financial interests of yours always be in the first place.
#5. Supports in Growing Business
Based on business need, an accountant can be utilized more or little. But in case, you are intended to grow business and manage risks besides filing tax returns and keeping records up-to-date then there is a rigorous requirement of hiring a chartered accountant rather than an accountant.
Demerits of using an unregulated accountant
In current times anyone can call themselves an accountant, even they are chartered or qualified from any other professional body. So how your business will be affected if your accountant is making repeated mistakes, providing dodgy advice and has violated the law?
If you are witnessing the same, your business is at greater risk as with such personnel you will miss deadlines, indiscrete practice and mistakes on reporting as well will burden you with a heap of unnecessary fines. Also, the goodwill of your business will be lowered in the market in the long run.
Not even this, you would come into the eye of HMRC for such kind of poor accountancy behavior and you would realize self as a victim of unlawful exercise. Also, if any business caught in the activity of false accounting fraud means with manipulated, destroyed or defaced accounts, not displaying their true value considered as a criminal offence and can result in imprisonment of authorized personnel. Giving excuses for not understanding accounting practices and standards, is not going to work in your favor for a fraudulent reporting, so you are more responsible for all that you think.
Having an eye on how your accounts are being managed would be a better option. Other than this, you can opt for a handy, user-friendly software to manage your accounts that is a better approach.