Is your accountant or bookkeeper qualified?
Have you ever wondered what the abbreviations next to your accountant’s name mean? And does that mean he or she is properly qualified? Hopefully after reading this post you will have a better idea.
The sad truth is that many members of the public believe that a person who offers or advertises accounting, bookkeeping and tax services is properly qualified. That is far from the truth. The mere fact that a person has worked for SARS does not guarantee they can do taxes. The same goes for working as a company bookkeeper or accountant and doing Financial Statements.
The problem is that the term accountant is used very broadly. Some people call bookkeepers accountants, others call accountants bookkeepers and others refer to accountants as auditors. Who is to blame? We, the accountants of course. With the exception of the term CA(SA) and perhaps Professional Accountant (SA) do you know what AGA(SA), MIAC, FIAC, Business Accountant, CJBIcb(SA), CSBIcb(SA) CTFAIcb(SA), ACMA, FCMA, AAC,RAA, ACIS, FCIS,CAT, IACAO, IACAT stands for?
Auditors
Not all CA (SA)’s may perform external audits of companies. Only CA’s registered as auditors can perform this function. You will normally find the term CA (SA) and RA next to a registered auditors name. A registered auditor is also more than capable to perform accounting and bookkeeping work.
Accounting Officers and Independent Accounting Professionals
A person qualified to Act as an accounting officer or Independent Accounting Professional will have one of the following next to their name
Professional Accountant (SA)
They belong to the South African Institute of Professional Accountants (or SAIPA) the second largest accounting body in South Africa with more than 6000 members. The minimum requirements to use qualify as a Professional Accountant (SA) is a degree in the field of accounting, 3 years SAIPA articles or 6 years verifiable experience and passing an entrance exam before admission occurs. SAIPA is a member of the International Federation of Accountants (IFAC) meaning they met IFAC’s strict qualification criteria so you can rest assured their members are properly qualified.
Business Accountant
A Business Accountant belongs to The South African Institute of Business Accountants (SAIBA). The minimum entrance requirement to become a business accountant is a diploma in the field of accounting and three years practical experience. No entrance exam is required. SAIBA is not a member of IFAC.
Chartered Management Accountant (ACMA or FCMA)
A Chartered Management Accountant is a member of the Chartered Institute of Management Accountants or (CIMA) CIMA Accountants are mostly working as internal accountants for companies rather than public accountants as their focus is to provide financial information to management to help with decision making. In order to qualify as a Chartered Management Accountant you need to pass CIMA’s papers according to their syllabus, demonstrate three years relevant practical work experience and pass their entrance exam.
CA (SA) or AGA (SA)
Both belong to the South African Institute of Chartered Accountants the largest accounting body in South Africa. Minimum requirements to become a CA (SA) is a Certificate in the Theory of Accounting/B Com Hons in Accounting , articles and passing part one and two of the board exam. To become an AGA(SA) a B Com. degree or 4 year diploma in the field of Accounting is required, completing a three year learnership and passing an entrance exam. SAICA is a member of IFAC.
FIAC, MIAC and IACAO
They belong to the Institute of Accounting and Commerce or IAC. The minimum entrance requirement to become an IAC Accountant is a diploma in the field of Accounting and three years practical experience. No written entrance exam is required, but a verbal assessment takes place. The IAC is not a member of IFAC.
Bookkeepers
Needles to say anybody qualified as an auditor or accounting officer should be more than capable to do bookkeeping work.
Qualified bookkeepers will have the following designations next to their name
AT in one form or another standing for accounting technician.
SAICA call their accounting technicians AAC (Associate Accounting Technicians), The ACCA call their accounting technicians CAT (Certified accounting technicians), SAIPA calls them Accounting Technicians, The IAC call them Registered Accounting Technician or IACAT. Accounting Technicians normally prepare financial statements up to Trial Balance •
ICB in word
When you see a qualification with the letters Icb in it, it means the person belong to the Institute of Certified Bookkeepers (ICB). Additional letters are added to the Icb to illustrate the level of membership. For example the J in CJBIcb(SA) stands for junior bookkeeper, and S in CSBIcb(SA) stands for senior bookkeeper etc.
The bottom line is if you get a person to do your bookkeeping, accounting and tax work and you do not see any of the above qualifications next to their name, you increase the risk to burn your fingers. You may find a capable person to handle your books who does not belong to one of the above bodies. They do exist. But they are in the minority in my experience.
At the end of the day you just want somebody capable to do your work. Hopefully you now understand a bit more about the different abbreviations accountants and bookkeepers use behind their names. I trust you will choose the best one for your specific needs.