UK Accountancy Qualifications and Regulations

In the UK, there is no licence requirement for individuals to practice as an accountant (except for insolvency or audit work). However, to use certain titles and designatory letters requires membership of the appropriate professional body. In addition, having the right qualifications for accounting enables the holder to apply to a wider selection of accounting vacancies, adds variety to their working life and makes them a more valuable asset to their employer.

Accounting Technicians

Qualifying to become an accounting technician is often the first step taken by those who want to start their accountancy career. Accounting Technicians, when certified as being experienced and competent, can perform exactly the same tasks in a financial environment as most qualified Chartered Accountants, although they cannot sign off companies audit reports. In a small firm, an accounting technician may be the only person trained to deal with basic finance matters like wages and invoices, whilst in larger companies, an accounting technician would work as part of an accounts team.

Association of Accounting Technicians (AAT)

The AAT is a technician level qualification that entitles those who have completed the exams and obtained relevant supervised work experience to call themselves associate accounting technicians. The qualification is a combination of practical experience and exams, offering flexible ways of completing the course be it distance learning, evening classes or days out of the office.

The scheme has three stages:

• Foundation - NVQ/SVQ in Accounting, level 2
• Intermediate - NVQ/SVQ in Accounting, level 3
• Technician - NVQ/SVQ in Accounting, level 4

Each level represents a qualification in its own right, and a certificate will be awarded for each level completed.

Certified Accounting Technician (CAT)

A qualification offered by the Association of Chartered Certified Accountants (ACCA) as an alternative to the AAT. The qualification is on the Qualifications and Curriculum Authority (QCA) National Qualifications Framework, which means that publicly funded educational institutions are now eligible for grants to help them train individuals towards this qualification in the United Kingdom.

It usually takes one and a half years to complete the nine CAT exams. However, there is no restriction on the number of papers that can be attempted in each sitting. Although CAT can be obtained as a stand-alone qualification, individuals often study for CAT as an introductory qualification prior to training to become a Chartered Certified Accountant through the ACCA Professional Scheme.

Chartered Accountants

Anyone who wishes to use the description "Chartered Accountant" must be a member of one of the following organisations:

• the Institute of Chartered Accountants in England & Wales (ICAEW) (designatory letters ACA or FCA)
• the Institute of Chartered Accountants of Scotland (ICAS) (designatory letters CA)
• the Institute of Chartered Accountants in Ireland (ICAI) (designatory letters ACA or FCA)
• a recognised equivalent body from another Commonwealth country (designatory letters being CA (name of country) eg CA(Canada))
• Chartered Certified Accountants must be members of the Association of Chartered Certified Accountants (ACCA) (designatory letters ACCA or FCCA)
• Chartered Public Finance Accountants must be members of the Chartered Institute of Public Finance and Accountancy (CIPFA) (designatory letters CPFA)
• Chartered Management Accountants must be members of the Chartered Institute of Management Accountants (CIMA) (designatory letters ACMA or FCMA)
• Certified Public Accountants must be members of the Association of Certified Public Accountants (CPA) (designatory letters ACPA or FCPA)

Each of these bodies admits members only after passing examinations and undergoing a period of relevant work experience. For example, the ICAEW requires that students complete 15 examinations in addition to 3240 hours of relevant work experience. Once admitted, members are expected to comply with ethical guidelines and gain appropriate professional experience.