Who is a Professional Accountant?
Professional accountants are qualified individuals who have obtained a professional accounting designation such as a Professional Accountant (SA), Chartered Accountant CA(SA), Chartered Global Management Accountant (CGMA), Associate General Accountant AGA (SA), Certified Public Accountant (CPA), Certified Management Accountant (CMA), or Certified Internal Auditor (CIA).
The journey starts with having the required subjects like mathematics, accounting, business studies and economics at a school level. This provides the entry requirements for the respective degree in accounting. On successful completion of an accounting degree the individual is considered an Accountant. The distinction thereafter is between what they call qualified and unqualified accountants.
Let's explain the difference between an Unqualified and Qualified Accountant in the general sense:
Unqualified Accountant
- Has completed a degree in accounting
- Is not an active member of a professional body like SAIPA, SAIPA, CIMA, SAIBA
- Has not completed articles with an accounting firm which resulted in the writing of a board exam
- Does not have the professional indemnity protection that is usually covered by a professional membership with an accounting body
- Is limited to the work experience and accounting knowledge they have acquired whilst working as an accountant
- Is not allowed to sign off on financials (due to not having a professional designation)
- Is not bound by CPD (Continual Professional Development)
Qualified Accountant
- Has completed a degree in accounting
- Is an active member of a professional body
- Has a professional designation ie. Professional Accountant (SA), CA (SA), CGMA,
- Has the protection of professional indemnity as a result of membership with a professional body
- Has a variety of work experience and accounting knowledge as they have been exposed to all or most types of businesses and entities, whilst doing articles
- Is allowed to sign off on financials (due to having a professional designation)
- Is bound by CPD and must complete set amounts of CPD hours per year which is divided into various tax, accounting, IT, compliance and ethics topics
Accountants working in the industry decide for themselves and based on their career objectives which type of accountant they wish to become be it qualified or unqualified. Furthermore, accountants also have the choice of either being an accountant in practise or an accountant working in the commercial or public sector.
The job options are broad and require candidates to do their research and analysis of their capabilities and goals. The annual salary for a qualified accountant is higher than that of an unqualified accountant. This is attributable to the additional competence these individuals acquire throughout their progression in their career.
There is also a distinction between financial and management accountants. This refers to their main area of speciality. Financial accounting represents historic data, accountants working with historic financial data are usually involved in the reporting or auditing work. Management accounting deals with future data of forecasting, these accountants are usually working on costing data, projections, forecasting and variance management.
Accountants who have completed and pursued the CA (SA) route are then further able to continue on to becoming registered Auditors. This journey requires additional studies and additional "article" time which is meant to be under the supervision of a registered auditor (another 18 months).
As you can see an Accountant's journey in their career is a long one which requires lots of dedication, years of study and continual development.
Frequently asked questions
How do you qualify as a professional accountant?
To become a Professional Accountant (SA), it typically takes 6 years. Becoming a Professional Accountant (SA) usually requires 6 years. This consists of a 3-year degree and a 3-year internship. It is important to complete your undergraduate qualification as quickly as possible.
Earning a Professional Accountant (SA) qualification does not necessitate the completion of a postgraduate degree. The designation is registered with FASSET and the candidate receives an NQF8 qualification on passing the PE exam.
Is a Professional Accountant also a Tax practitioner?
A qualified accountant will qualify to register as a tax practitioner however they still need to register with a Professional Tax Body as this is a required to be registered as a Tax Practitioner with SARS. A Tax Practitioner is required to complete a set amount of CPD hours per annum to ensure they remain competent and up to date with the latest legislative changes. Only a registered tax practitioner is allowed to complete tax returns on behalf of a taxpayer.
What is a Professional Accountant (SA)?
Holders of the SAIPA Professional Accountant (SA) qualification are empowered to perform numerous functions and issue reports in terms of the following pieces of legislation:
- Companies Act
- Close Corporations Act
- Micro Lending Industry Regulations
- Sectional Titles Act
- Non-profit Organisations Act
- Income Tax Act
- Schools Act and various other acts
Unlike the traditional understanding of what an accountant does, which puts emphasis on the preparation of financial statements, a Professional Accountant (SA) is a business consultant/advisor that actively participates in the decision-making processes of a business, and can perform a broad range of functions.
What do you call a professional accountant?
Professional Accountant (SA). Chartered Accountant (SA), Chartered Global Management Accountant, Certified Public Accountant (CPA) Management Accountant (including “cost” and “staff” accountant) Chartered Accountant (CA)
Can a bookkeeper be called an accountant?
While both bookkeepers and accountants aim to contribute to the financial success of your business, their responsibilities are different. Bookkeepers primarily concentrate on daily tasks such as documenting transactions, whereas accountants offer comprehensive financial counsel and tax assistance.
Which accounting degree is best?
The degree chosen should be based on the career path the candidate wishes to take. Accounting degrees are usually aligned with this in mind. For example, if the candidate wishes to become a Professional Accountant (SA), CA (SA) or CGMA, then these bodies and have different entry requirements and modules required to pursue that direction.
Is it better to be a bookkeeper or an accountant?
Accountants anticipate higher earnings and career advancement compared to bookkeepers. For optimal income prospects and enduring job security, it is beneficial to consider a career in accounting.
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