Becoming a Chartered Accountant - a step-by-step guide
Becoming a chartered accountant is a prestigious and rewarding career that requires in-depth accountancy training, education and dedication. Chartered accountants are trusted professionals who provide financial expertise in a wide range of industries and sectors.
If you’re wondering what it takes to become a chartered accountant in the UK, our latest blog provides a comprehensive guide to the steps you need to progress your career in this highly competitive profession.
Understanding the role of a chartered accountant
Before diving into the specifics, it’s important to understand what being a chartered accountant entails. Chartered accountants are experts in financial management, auditing, taxation, corporate finance and business advisory services. They work across industries advising business, private and public sector organisations, government bodies and individuals on managing their finances effectively.
Becoming a chartered accountant involves extensive training, work experience and passing lots of exams! Only those who have completed the necessary qualification to become members of a recognised accountancy body can use the title ‘chartered’. Qualifications are provided by a range of professional bodies including:
Institute of Chartered Accountants in England and Wales (ICAEW)
Association of Accounting Technicians (AAT) - while AAT qualifications will not enable you to become chartered, they are a great stepping stone to achieving the status.
Key skills needed to become a chartered accountant
I’m good at maths – does that mean I can become a chartered accountant? Well certainly having mathematical skills will help you in your accountancy career but you’ll need a range of attributes if you want to achieve in the profession. Useful skills include:
Strong numerical and analytical skills
An ability to interpret data
High levels of self-motivation and discipline
Commercial awareness
IT proficiency
Organisational and time management skills
Good communication skills
Educational requirements
While many accountants hold a university degree, it’s not mandatory to becoming a chartered accountant. That said, having degree in economics, finance or business will help your career to progress. Holding a degree or Masters in any subject may exempt you from some stages of professional exams. Finance graduate schemes usually offer opportunities to gain an accountancy qualification as part of the programme.
School leaver or apprentice route?
For those who prefer not to attend university, school leaver and apprenticeship programmes provide a great alternative. Being an accountancy apprentice allows you to learn while you earn, gaining valuable work experience and progressing through your exams without incurring student debt. Accounting apprenticeships such as those run by AAT provide a route to achieving chartered status with the main professional bodies such as ACCA and ICAEW.
Discover how Molly Hird completed her Level 7 ICAEW apprenticeship, passed all her accountancy exams, gained extensive work experience and will soon become a chartered accountant – all without incurring any student debt. Read her inspiring story as an ICAEW accountancy student with Reed Business School!
What professional qualifications do I need to become chartered?
AAT qualifications are the minimum level expected of an accountant but to become chartered, you’ll need to study qualifications offered by the following leading professional bodies.
ICAEW – consists of 15 exams divided into three levels: certificate, professional and advanced plus 450 days of practical work experience and ethical and professional development before qualifying.
CIMA - focuses on management accounting and are tailored for accountants who want to enhance their financial management and business strategy skills. Consists of four levels of exams – certificate, operational, management and strategic, plus at least three years relevant practical experience and an ethics component.
ACCA - consists of 13 exams that cover areas such as financial accounting, taxation, and audit over four levels – foundation, applied knowledge, applied skills and strategic professional. You must also complete at least three years of work experience and complete an ethics module.
While many firms often accept qualifications from any board, it’s worth looking into their preferred route if you have a definite career path in mind.
Securing a training contract
Becoming a chartered accountant takes more than passing exams to become qualified. All the professional accountancy bodies require students to gain practical work experience while they study so key to your success will be to secure a training contract with a recognised employer.
These are typically offered by accounting firms, ranging from the Big Four - Deloitte, PwC, EY, KPMG - to small and medium-sized firms. Not surprisingly, training contracts are very competitive so try first for an internship, work placement or part-time role to gain experience.
This will help you stand out when applying for training positions. Entry-level finance and administrator roles will also enable you to learn valuable skills and get a foot on the accountancy career ladder.
Depending on your progress, your training contract usually lasts for three to five years. During this time, you’ll balance working in a professional environment while studying for your exams. This hands-on experience provides practical knowledge that complements your academic learning. For ICAEW, for example, you must complete at least 450 days of practical work experience over your three years. You’ll also develop key skills such as communication, teamwork, leadership, and problem-solving, which are all essential for a successful career as a chartered accountant.
Passing exams and ethics training
Successfully passing your exams is critical to becoming a chartered accountant. Here's a closer look at the structure of ICAEW's ACA qualification to give you an idea of what’s involved:
Certificate level (6 modules):
Accounting
Assurance
Business and Finance
Law
Management Information
Principles of Taxation
Professional level (6 modules):
Audit and Assurance
Business Planning
Financial Management
Financial Accounting and Reporting
Tax Compliance
Business Strategy and Technology
Advanced level (3 modules):
Corporate Reporting
Strategic Business Management
Case Study (a real-world business case)
Alongside the exams, you must complete ethics training, which is designed to ensure you understand the importance of professional responsibility and integrity.
Applying for membership
Well done, you’ve finally completed all your exams, ethics training and practical work experience! Now you can apply to become a member of the professional body you trained with, such as ICAEW, ACCA, or CIMA. Once approved, you’ll be granted the status of chartered accountant and can use the letters ACA or FCA (Fellow Chartered Accountant after ten years of membership for ICAEW) after your name.
Career options for chartered accountants
As a chartered accountant, a variety of career options are available to you. You can work in:
Audit and assurance
Taxation
Management accounting
Corporate finance
Consulting
Risk management
Business recovery and insolvency
You can also choose to work in various industries, such as finance, healthcare, retail, or technology, or pursue an entrepreneurial path by starting your own accounting firm. Alternatively, having a chartered accountancy background can open doors for general finance and business strategic roles.
What can you expect to earn as a chartered accountant?
The average chartered accountant gross salary in the UK is £51,861 rising to £64,260 for those with more experience. Management accountants in London earn on average £51,800 while financial controllers earn on average £76,800.
Final note
Whether you're a school leaver, a graduate, or someone looking to switch careers, the path to becoming a chartered accountant offers the flexibility to specialise or to have a more varied work life advising individual clients within private practice. There are opportunities for professional development throughout your career and financial stability for the future. Now is the time to take the first step toward building a successful career in finance!
Find out more
Reed Business School offers industry-recognised accredited accountancy qualifications and apprenticeships including ACCA, ICAEW, AAT and CIMA.
Speak to us if you’re ready to start your accountancy or finance career.