Who are accountants?

Who are accountants?

Unfortunately there is nothing to stop anybody calling themselves accountants. This means that it is vitally important to understand the three main types of accountants.

• Book-keepers - Their role is largely to "keep the score" by recording the financial effects of what a company has done. They are usually the best people to do routine accounting work.
  
  
• Qualified accountants and tax advisers - These are experienced professionals who have undergone rigorous training and passed extremely difficult exams. There are a number of leading qualifications - but if you look for the letters ATII, ATT, ACA, FCA, ACMA, FCMA, ACCA, CA or FCCA after the accountant's or tax adviser's name you should not go too far wrong. Qualified advisers are best at dealing with the non-routine aspects of your business, e.g. helping you to increase your profits, produce your statutory accounts and pay less tax.
  
  
• Unqualified tax advisers and accountants - There are also many unqualified people. Before deciding to use the services of one, we suggest you ask yourself: "Would I put the health of my family in the hands of an unqualified doctor?" If the answer is no, why consider putting the health of your business in the hands of an unqualified tax adviser or accountant? Don't be afraid to ask what qualificationsand expertise they have - and if you have any doubts, try somebody else.

A definition of accountancy

Accountancy is about identifying and recording, analysing and explaining the financial implications of business transactions and decisions to enable businessmen to understand the performance of their businesses, and to help them make decisions and take actions which assist in achieving the objectives of the business.

But don't worry, as we will explain over the next few pages, it's actually really rather simple!