The word "Accountant" gets used as a catch-all term, but not everyone offering accountancy services is a chartered accountant, and the difference matters more than people realise.
If you're weighing up whether you need one, or you're just curious what you're actually paying for, here's a plain English look at what a chartered accountant does day to day, and how that goes further than filling in a tax return.
What "Chartered" Actually Means
A chartered accountant has trained for years, sat professional exams, and holds membership with a recognised body such as the ICAEW. That qualification comes with ongoing professional standards, continued learning requirements, and a code of ethics they're bound to. It's a different tier to someone who simply calls themselves an accountant without formal chartered status, and it's worth checking before you hand over your finances.
The Day to Day: Accounts, Tax and Compliance
At its core, a chartered accountant prepares and files annual accounts, whether that's for HMRC, Companies House, or the Charities Commission. They handle Self Assessment and Corporation Tax returns, manage payroll and VAT, and keep your business compliant as rules change year on year. This is the groundwork that keeps you out of trouble with the taxman, but it's only part of the job.
Tax Planning, Not Just Tax Filing
There's a difference between filing a tax return and properly planning for tax. A chartered accountant looks ahead, structuring your income, dividends and allowances so you're not paying more than you need to. That might mean advising on directors' loan accounts, timing a dividend, or flagging an allowance you'd otherwise miss. Done well, this pays for itself many times over.
Strategic Advice as Your Business Grows
As your business changes, so does what you need from your accountant. A chartered accountant can act as a sounding board for major decisions such as taking on staff, buying property, or preparing a business for sale. They'll help with cash flow forecasting, business structure, and financial planning, giving you an objective view that's grounded in the numbers rather than guesswork.
A Voice You Can Trust When It Matters
Because a chartered accountant has no personal stake in your business decisions, their advice is genuinely impartial. That's valuable when you're weighing up a big investment, considering a merger, or simply need someone to challenge your thinking before you commit.
At PG Owen, our team across Bath, Radstock, Midsomer Norton and Warminster works this way with every client, whether you're self-employed, running a growing company, or somewhere in between.
Frequently Asked Questions
Is a chartered accountant more expensive than a regular accountant?
Not necessarily. Fees vary by firm and the level of service you need, but the added qualifications, accountability and professional standards mean you're generally getting more value and lower risk for your money.
Do I need a chartered accountant if I'm a small sole trader?
It depends on how complex your finances are. Many sole traders manage with simpler support, but as soon as you have multiple income sources, employ staff, or want proper tax planning rather than just filing, a chartered accountant tends to pay for themselves.
Can a chartered accountant help with things beyond tax?
Yes. Beyond accounts and tax, a chartered accountant can advise on business structure, cash flow, financial forecasting, audits, and major decisions such as expansion or succession planning.
How do I check someone is a genuine chartered accountant?
You can search for them on the ICAEW website, which lists all members in good standing. It only takes a moment and is worth doing before committing to a firm.
Talk to a Local Chartered Accountant
If you'd like to know exactly what a chartered accountant could do for your business, PG Owen offers a free, no-obligation consultation across Bath, Radstock, Midsomer Norton and Warminster. Get in touch and let's talk through what you need.