Alphabet soup!

To the uninitiated the multitude of letters after accountants' names can be confusing, so here's a brief look at what they all mean.

ICAEW - Institute of Chartered Accountants in England and Wales

This is the industry body for accountants who qualify (by examination) as Members (ACA) or, after a period of time, as Fellows (FCA). In England and Wales this is considered to be the stamp of excellence for qualified accountants.

ACCA - Association of Chartered Certified Accountants

This is similar to the ICAEW, but is a more global organisation with the qualification being present in most countries globally, Again, membership generally requires passing exams as well as gaining a level of experience. Membership (ACCA) is gained on completion of examination and experience requirement, fellowship (FCCA) is gained after 5 years of membership.

CIOT - Chartered Institute of Taxation

This is the next level up for anyone who wants to specialise in taxation. Both ACA or ACCA qualification will give exemptions from some exams at CTA level. Then once the exams have been passed, this allows the candidate to add CTA (Chartered Tax Advisor) after their name.

ATT - Association of Taxation Technicians

This is the professional body for people who provide tax compliance services in the UK. It's the first qualification an aspiring tax advisor would go for.

AAT - Association of Accounting Technicians

This is the first level qualification for anyone who comes into accounting. For some this is their sole qualification, others go on to attain Chartered or Chartered Certified qualifications.

In our firm our trainees undertake AAT qualification first to give them a good grounding in management accounting, VAT and tax returns. Some progress to ACCA and those who are working specifically in the tax department will hopefully go on attain their CTA.

Currently, our partners are evenly split. Two are members of the ACCA, two of the ICAEW whilst the firm is regulated overall by the ICAEW. One of our partners is working on his examination of experience to gain membership of the ICAEW via his ACCA qualification and will soon be a member of both bodies.

There is another accounting qualification; CIMA - Chartered Institute of Management Accountants, but this is a qualification that is more relevant for finance personnel working in industry, where they are involved in day-to-day management reporting. It's unlikely that a practising accountant will hold this qualification.

You don't have to have any of these qualifications to practice as an accountant - or even as a tax advisor. Anyone can do it. However, it's usually wise to choose your accountant from the ranks of qualified practitioners. If your accountant is not regulated, they don't have access to current best practice advice and support and may not be keeping up with professional development requirements that the professional bodies require.

If an accountancy practice is registered as an audit firm - as we are - they are subject to a high level of regulation, in our case by the ICAEW.